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DOL FINAL RULE: 80s ERA DAVIS-BACON PREVAILING WAGE DEFINITION RESTORED

26 Oct

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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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This communication is intended solely for the purpose of conveying information. The present post might incorporate hyperlinks directing readers to websites managed by third-party entities. The inclusion of any links within this communication is meant to serve as points of reference and could encompass opinion articles from various law firms, articles from HR associations, official websites, news releases, and documents of government agencies, and other relevant third-party sources. Vensure has no authority over these external websites and bears no responsibility for their content. Furthermore, Vensure does not endorse the materials present on these websites. The contents of this communication should not be interpreted as legal advice or as a legal standpoint concerning specific facts or scenarios. Nor should it be deemed an exhaustive compilation of facts potentially pertinent to federal, state, or local laws. It is strongly advised that employers solicit legal guidance from an employment attorney when undertaking actions in response to any legal updates provided. This is due to the possibility of future alterations occurring in federal, state, and local laws, regulations, as well as the directives and guidelines issued by governing agencies. These changes may transpire at any given time, potentially rendering certain portions of the content within this update void or inaccurate.

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