What does the Davis-Bacon Act require?

The Davis-Bacon Act requires the payment of prevailing wages on construction projects that are federally financed or assisted. This means that workers on these projects must be compensated at least the local prevailing wage for their respective roles, as determined by the Department of Labor. The goal of the Davis-Bacon Act is to ensure that contractors who work on government projects do not underbid by paying lower wages, thereby protecting the wage standards within the local construction industry. This act specifically addresses federally funded projects and establishes guidelines to maintain fair compensation standards for laborers, which is essential for promoting fair labor practices and maintaining a stable workforce in the construction sector.