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Final Rule Updating Davis Bacon Act Regulations Published

11 Sep

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Update Applicable to:

The Davis-Bacon Act applies to contractors and subcontractors who perform work on federally funded or District of Columbia contracts over $2,000.

What happened?

On August 23, 2023, the Department published in the Federal Register the final rule, “Updating the Davis-Bacon and Related Acts Regulations.” 

What are the details?

The final rule updates regulations issued under the Davis-Bacon and Related Acts that set forth rules for the administration and enforcement of the Davis-Bacon labor standards that apply to Federal and federally assisted construction projects. As the first comprehensive regulatory review in nearly 40 years, revisions to these regulations will promote compliance, provide appropriate and updated guidance, and enhance their usefulness in the modern economy.

The final rule is effective on October 23, 2023.

For more information, please see the links below:

Final Published Rule

Law Firm Article, Article 2, Article 3

Davis-Bacon and Related Acts

What do employers need to do?

The new rule is expected to lead to higher prevailing wage rates for workers and will introduce additional compliance requirements for contractors. Notably, contractors will now bear the responsibility for Davis-Bacon Act (DBA) compliance by law, rather than relying on notice provisions in contract clauses. Contractors engaged in DBA-covered projects must ensure the correct implementation of prevailing wage rates for covered work, significantly increasing compliance risks, particularly for those with limited experience in DBA-covered work. Whether you’re the prime contractor or a subcontractor on a federal project, conducting thorough due diligence on DBA compliance before commencing work and staying informed about potential legal challenges is crucial.

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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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