The Labor Department is set to issue a final rule that strengthens regulations on pay for construction workers on federal projects. Acting Labor Secretary Julie Su will finalize the rule, which affects the Davis-Bacon Act, on Tuesday.
Acting Labor Secretary Julie Su will finalize the rule on Tuesday, the American Prospect reported. The rule affects the Davis-Bacon Act, which was first created in 1931 and establishes the requirement for prevailing wages to be paid to mechanics and laborers employed by contractors and subcontractors with federal contracts.Prevailing wages differ depending on location, but they basically set a floor for construction worker payment on public works projects.
Under Davis-Bacon, prior to this expected rule, to calculate the prevailing wage, a majority of those providing wages had to be surveyed. But under the revised rule, a prevailing wage can be determined from a survey of just 30% of the workers. Higgins said that the purpose of Davis-Bacon is to wipe away the advantage of non-union labor. He said it can set the wages so high that employers might as well have a union workforce because they won’t be able to pay the workers less than what they would probably get under a collective bargaining contract anyway. He said that the final rule would be a major boost for unions.
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