Update Applicable to:

All Employers.

What happened?

On August 8, 2023, the U.S. Department of Labor (DOL) announced its final rule related to the Davis-Bacon Act.

The official final rule must be published in the Federal Register before going into effect 60 days after publication, which will be effective on October 23, 2023.

What are the details?

Generally, DOL’s rule is meant to streamline updates to prevailing wages so they align more closely with actual wages. To further this goal, the final rule expands the data on which DOL can rely in its wage determination process.

The new definition for “Prevailing wage” is as follows:

“[P]revailing wage” means: (1) The wage paid to the majority (more than 50 percent) of the laborers or mechanics in the classification on similar projects in the area during the period in question; (2) If the same wage is not paid to a majority of those employed in the classification, the prevailing wage will be the wage paid to the greatest number, provided that such greatest number constitutes at least 30 percent of those employed; or (3) If no wage rate is paid to 30 percent or more of those so employed, the prevailing wage will be the average of the wages paid to those employed in the classification, weighted by the total employed in the classification.”

For more information, please see the links below:

Law Firm: Article 1

DOL Final Rule in DBRA pdf

DOL Memorandum              

DOL comparison chart Rules (before/After)

DOL FAQ

What do employers need to do?

Employers should consider the metrics established by the Prevailing Wage, to ensure that the rate they are paying is according to the market value of the wage. It will also serve as an indicator for contractors of the government to know if the offer they are presented, or presenting, is updated.

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