September 14, 2021
Federally Funded Construction and the Payment of
Locally Prevailing Wages
Introduction
contract to complete the work and hold the original
Beginning in the 1930s, Congress has enacted multiple
contractor liable for any excess costs incurred. Id.
statutes that establish minimum labor standards for various
classes of workers. Some of these standards apply broadly
The Comptroller General of the United States is required to
to most employers (e.g., the Fair Labor Standards Act and
distribute to all federal agencies a list of individuals or
the National Labor Relations Act), while others apply more
firms that have failed to pay laborers and mechanics a
narrowly to private employers that enter into contracts with
prevailing wage under the DBA. Id. § 3144(b)(1). The
the federal government. The latter group covers federal
federal government may not award a contract to the persons
contracts for construction work or the purchase of goods or
or firms appearing on the list or to any firm, corporation,
other types of services. This In Focus examines the federal
partnership, or association in which such persons or firms
law that prescribes labor standards for federal construction
have an interest until three years after the date of
contracts—the Davis-Bacon Act—and a series of related
publication of the list. Id. § 3144(b)(2).
statutes that incorporate the Davis-Bacon Act standards into
their provisions.
Davis-Bacon “Related Actsâ€
CRS has identified forty-eight statutes that authorize
The Davis-Bacon Act
financial assistance for construction projects through grants,
The Davis-Bacon Act (DBA), 40 U.S.C. §§ 3141-3148,
loans, and other funding mechanisms to which Congress
requires government contractors to pay locally prevailing
has added prevailing wage provisions. These laws,
wages to laborers and/or mechanics employed on certain
described as Davis-Bacon “related acts†because of their
federally funded construction projects. Enacted in 1931, the
prevailing wage requirements, involve construction in areas
DBA reflects Congress’s interest in giving the government
such as transportation, housing, air and water pollution
“the power to require its contractors to pay their employees
reduction, and health. The related acts’ prevailing wage
the prevailing wage scales in the vicinity of the building
requirements apply when federal financial assistance is
projects.†S. Rep. No. 71-1445, at 1-2 (1931). Pursuant to
provided for construction, but the federal government is not
the DBA, the Secretary of Labor calculates the prevailing
a contracting party or a public building or public work is
wages by reviewing wages paid to corresponding classes of
not involved.
laborers and mechanics employed on projects of a similar
character to the contract work in the city, town, village, or
In general, the prevailing wage provisions of the various
civil subdivision of the state in which the work is
related acts are phrased similarly and refer to the wages
performed. See 29 C.F.R. § 1.3. The DBA defines the term
prescribed by the Secretary of Labor under the DBA. For
“wages†to include not only a basic hourly rate of pay, but
example, section 1702(k) of the Energy Policy Act of 2005,
amounts related to health, retirement, and other fringe
42 U.S.C. § 16512(k), states, in relevant part: “All laborers
benefits. See 40 U.S.C. § 3141(2).
and mechanics employed by contractors and subcontractors
in the performance of construction work financed in whole
The DBA requires government contractors to pay locally
or in part by a loan guaranteed under this subchapter shall
prevailing wages when these conditions exist: (1) there is a
be paid wages at rates not less than those prevailing on
contract in excess of $2,000; (2) the United States or the
projects of a character similar in the locality as determined
District of Columbia is a party to the contract; and (3) the
by the Secretary of Labor in accordance with subchapter IV
contract is for construction, alteration, and/or repair,
of chapter 31 of Title 40.†The following is a list of the
including painting and decorating, of public buildings or
remaining Davis-Bacon related acts, at this writing, with
public works of the United States or the District of
similar language:
Columbia within the geographical limits of the United
States or the District of Columbia. 40 U.S.C. § 3142(a).
1. Farm Security and Rural Investment Act, § 9003(f); 7
Contractors are generally required to pay locally prevailing
U.S.C. § 8103(f)
wages to laborers and mechanics when a construction
project satisfies these three conditions.
2. Housing Act of 1959, § 401(f); 12 U.S.C. § 1701q(c)(3)
3. National Housing Act, § 212; 12 U.S.C. § 1715c
The government may terminate a contract if it discovers
that a contractor has not paid the required prevailing wages.
4. Tennessee Valley Authority Act, § 3(b); 16 U.S.C.
Id. § 3143. Following termination, the government may
§ 831b(b)
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Federally Funded Construction and the Payment of Locally Prevailing Wages
5. National Foundation on the Arts and the Humanities Act,
28. Public Works and Economic Development Act, § 602;
§§ 5(k), 7(j); 20 U.S.C. §§ 954(n), 956(j)
42 U.S.C. § 3212
6. General Education Provisions Act, § 439; 20 U.S.C.
29. Domestic Volunteer Service Act of 1973, § 406; 42
§ 1232b
U.S.C. § 5046
7. Education of the Deaf Act, §§ 105(b)(4), 202(b)(5); 20
30. Robert T. Stafford Disaster Relief and Emergency
U.S.C. §§ 4305(b)(4), 4332(b)(5)
Assistance Act, § 611(j)(9); 42 U.S.C. § 5196(j)(9)
8. Federal-Aid Highway Act, § 12(a); 23 U.S.C. § 113(a)
31. Energy Policy and Conservation Act, § 399A(g)(4); 42
U.S.C. 6371h-1(g)(4)
9. Indian Health Care Improvement Act, § 303(b); 25
U.S.C. § 1633(b)
32. National Energy Conservation Policy Act, § 312; 42
U.S.C. § 6371j
10. Native American Housing Assistance and Self-
Determination Act, § 104(b); 25 U.S.C. § 4114
33. Public Works Employment Act of 1976, §§ 109, 208;
42 U.S.C. §§ 6708, 6728
11. Hawaiian Homelands Homeownership Act, § 203; 25
U.S.C. § 4225(b)
34. Energy Conservation and Production Act, § 45(h); 42
U.S.C. § 6881(h)
12. Indian Self-Determination and Education Assistance
Act, §§ 7, 509(g); 25 U.S.C. §§ 5307, 5389(g)
35. Solid Waste Disposal Act, § 2; 42 U.S.C. § 6979
13. Federal Water Pollution Control Act, § 513; 33 U.S.C.
36. Clean Air Act, § 314; 42 U.S.C. § 7614
§ 1372
37. Cranston-Gonzalez National Affordable Housing Act,
14. Save Our Seas 2.0 Act, § 302(e), 33 U.S.C. § 4282(e)
§ 811(j)(5); 42 U.S.C. § 8013(j)(5)
15. Veterans Nursing Home Care Act, § 4(a); 38 U.S.C.
38. Comprehensive Environmental Response,
§ 8135(a)(8)
Compensation, and Liability Act, § 104(g); 42 U.S.C.
§ 9604(g)
16. Postal Reorganization Act, § 410(b)(4)(C); 39 U.S.C.
§ 410(b)(4)(C)
39. Head Start Act, § 644(g)(3); 42 U.S.C. § 9839(g)(3)
17. Appalachian Regional Development Act of 1965, § 402;
40. HOME Investment Partnerships Act, § 286(a); 42
40 U.S.C. § 14701
U.S.C. § 12836(a)
18. Hospital Survey and Construction Act, § 605(a)(5); 42
41. Energy Policy Act, §§ 963(c)(4)(B), 1702(k); 42 U.S.C.
U.S.C. § 291e(a)(5)
§§ 16293(c)(4)(B), 16512(k)
19. Safe Drinking Water Act, § 2(a); 42 U.S.C. § 300j-9(e)
42. Energy Independence and Security Act, §§
136(d)(2)(A), 491(d), 545(a)(1), 803(b)(3), 1112(a); 42
20. Public Health Service Act, §§ 1621(b)(1)(I),
U.S.C. §§ 17013(d)(2)(A), 17121(d), 17155(a)(1),
1642(b)(1)(D); 42 U.S.C. §§ 300s-1(b)(1)(I), 300t-
17282(b)(3); 49 U.S.C. § 22301(e)
12(b)(1)(D)
43. Boulder Canyon Project Adjustment Act, § 15; 43
21. U.S. Housing Act of 1937, § 12; 42 U.S.C. § 1437j
U.S.C. § 618n
22. Housing and Community Development Act of 1974,
44. Urban Mass Transportation Act, § 10(a); 49 U.S.C.
§§ 110, 802(g); 42 U.S.C. §§ 1440(g), 5310
§ 5333(a)
23. Housing Act of 1964 (farm housing), § 516(f); 42
45. Rail Passenger Service Act, § 405; 49 U.S.C. § 24312
U.S.C. § 1486(f)
46. Airport and Airway Improvement Act, § 515(b); 49
24. Defense Housing and Community Facilities and
U.S.C. § 47112(b)
Services Act of 1951, § 310; 42 U.S.C. § 1592i
47. Delaware River Basin Compact, Pub. L. No. 87-328,
25. Headstart, Economic Opportunity, and Community
§ 15.1 (not codified)
Partnership Act of 1974, § 11; 42 U.S.C. § 2992a
26. Atomic Energy Act, § 1804; 42 U.S.C. § 2297g-3
David H. Bradley, Specialist in Labor Economics
Jon O. Shimabukuro, Legislative Attorney
27. Housing and Urban Development Act of 1965, § 707;
IF11927
42 U.S.C. § 3107
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Federally Funded Construction and the Payment of Locally Prevailing Wages
Disclaimer
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https://crsreports.congress.gov | IF11927 · VERSION 1 · NEW