Updated in 2009, learn the details of the Davis-Bacon Act

1. Davis-Bacon and
Related Acts
Under the American Recovery and
Reinvestment Act of 2009
“ARRA”
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2. Davis-Bacon Act Objectives
 Review Original Act
 Summarize Changes
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3. ARRA 2009
 Effective February 2009
 Economic stimulus package
intended to provide a “jump start”
to the U.S. economy in wake of
the economic downturn
 Worth about $787 billion
 Includes federal tax cuts,
expansion of unemployment
benefits, and other provisions
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4. Davis-Bacon Act
 Originally passed in 1931 under the Herbert
Hoover Administration
 Initiated to ensure fair treatment of workers
during the Depression
 Named after sponsors of the bill
 James Davis (Senator – PA)
 Robert Bacon (Representative- NY)
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5. Who is covered?
 Applies to all businesses who:
 Employ Contractors and Subcontractors
 Perform work on federal construction OR federally
assisted contracts in excess of $2,000
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6. Employer Responsibilities
 Pay laborers and mechanics not less than the
prevailing wage rates and benefits in the area
 Pay employees weekly and submit weekly
payroll records
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7. Employer Responsibilities
 Pay overtime to employees if the prime contract
is over $100,000
 Post the Davis-Bacon wage determination
poster at work-site
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8. What are the “Related Acts”?
 Federal – Aid Highway Acts
 Housing and Community Development Act
 Federal Water Pollution Control Act
 Plus 57 Other Acts!
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9. New in 2009
 Effective January 2009
 If Federal Agencies are contracting for business
using ARRA Funds:
 Ensure that all bids and resulting contracts contain
Davis-Bacon Labor standards and wage
determinations
 Workers must be paid at least the prevailing wage as
determined by the Davis-Bacon Act
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10. Best Practices
• Post the Davis-Bacon wage determination
poster at work-site
• Know what the prevailing wage rates and
benefits are in your area / geography. If in
doubt, check with the Wage and Hour
Division
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11. Food For Thought
 The Davis-Bacon Act was suspended during
Katrina (with little negative impact) and then
reinstated 3 years later. With major
disasters happening almost daily, what does
this mean for the future of this act?
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12. Davis-Bacon Act Information
 For additional information go to:
http://wagehour.dol.gov
 gary@thevirtualhrdirector.com
 http://www.thevirtualhrdirector.com
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