Utah Grid Resilience Program requires Davis-Bacon Act compliance. What is the Davis-Bacon Act?

Enacted in 1931, the Davis-Bacon Act requires that contractors and subcontractors pay laborers and mechanics working on federal construction projects no less than the locally prevailing wages and fringe benefits for corresponding work on similar projects in the area. 

The Davis-Bacon and Related Acts (DBRA) require payment of local prevailing wages to construction workers performing work on federally funded construction projects.

The Davis-Bacon prevailing wage is the combination of the basic hourly wage rate and any fringe benefits rate listed for a specific classification of workers in the applicable Davis-Bacon wage determination.

Do contractors have to pay workers fringe benefits for overtime hours relating to the Davis-Bacon Act?

  • Yes, Davis-Bacon prevailing wages, including any listed fringe benefit rates, must be paid for all covered hours worked by covered workers, including overtime hours.
    • Examples of fringe benefits: life insurance, health insurance, pension, vacation, holidays, sick leave.
    • However, although contractors must pay fringe benefits for overtime hours, they are not required to compute and pay additional half-time on the fringe benefits paid
    • Source

What is a Davis-Bacon Act General Wage Determination?

  • Provide the conformance request form (SF-1444 or similar) to the contractor. Instructions on how to complete the form are printed on the form.
    • Download Form SF-1444: Request for Authorization of Additional Classification and Rate. Use this form to request a conformance from WHD.
      • OED will submit this form – please work directly with OED if a wage determination is needed.
  • As part of the conformance request, you will need to provide information about the work to be performed on the project, the requested labor classification, the duties to be performed by that labor classification and a recommended wage rate. It may be helpful to consider the input of affected parties, including the prime contractor, subcontractor, union representatives, and workers.
  • Source

What is a Davis-Bacon Act Investigation?

The Wage and Hour Division (WHD) of the Department of Labor (DOL) conducts investigations into compliance with the Davis-Bacon Act. The WHD may initiate an investigation in response to a complaint, or may initiate an investigation on its own.

In a Davis-Bacon labor standards investigation, WHD inspects relevant records, such as contracts, certified payrolls as well as other supporting payroll records, records relating to apprenticeship, and records of hours worked. WHD interviews the contractor and the contractor’s workers at the worksite during normal work hours. WHD may also conduct phone or mail interviews as needed. Funding agencies, funding recipients and contractors are required to cooperate with authorized representatives of WHD in all aspects of an investigation. Through the entirety of the investigation, WHD keeps the complainant(s) information, if any, confidential.

What happens if a contractor is found to be in violation of the Davis-Bacon prevailing wage requirements? If WHD finds that a contractor has not paid the applicable Davis-Bacon prevailing wages, WHD will request that the contractor remedy the violation(s). WHD may also have the funding agency or funding recipient withhold payments in sufficient amounts to satisfy liabilities for underpayment of wages and for liquidated damages for overtime violations under the Contract Work Hours and Safety Standards Act. In addition, contractors found to be in violation of the Davis-Bacon prevailing wage requirements may be grounds for contract termination, contractor liability for any resulting costs to the government and/or debarment from future contracts for a period of up to three years.

Further guidance on Davis-Bacon Act certified weekly payrolls.

What are the funding recipient’s responsibilities for collecting and maintaining the certified weekly payrolls?

Funding recipients, including sub-recipients, should receive and review certified weekly payrolls submitted by all contractors and subcontractors for accuracy and to identify potential compliance issues. Funding recipients should then transmit the original certified payrolls to the funding agency as required by 29 CFR 5.5(a)(3)(ii)(A).

Original certified weekly payrolls must be maintained for 3 years after the completion of the project and be made available to WHD upon request, as required by 29 CFR 5.6(a)(2).

LCP Tracker – Certified Payroll Reporting Software

  • This will be the software used to submit certified weekly payrolls.
  • The tracker will be available by the end of the 2024 calendar year.
  • Website linked here.
  • More information linked here.

Laborers engaged with the project who are 1099 contractual employees are subject to all requirements of the Davis-Bacon Act and must be included in the certified weekly payroll.

Davis-Bacon Act Resources: