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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