Full Text

Davis‐Bacon Act of 1931

Charles H. Fay


Subject Business and Management » Human Resource Management, International Management


Extract

Under this prevailing wage law, any employer with a federal government construction contract in excess of US$2,000 must pay wages to laborers and mechanics found to be prevailing locally (as determined by the Department of Labor). The employer must in any case pay at least minimum wages under the Fair Labor Standards Act of 1938 . The impact of the Davis‐Bacon Act (as is the case with the Services Contract Act and the Walsh‐Healy Act of 1936 ) is that employers pay local union rates. Davis‐Bacon is estimated to add $4.245 billion to government construction costs over the FY2001–FY2005 ( General Accounting Office, 2000: 278 ). ( 2002 ). Federal Wage and Hour Laws , 2nd edn. Washington, DC : SHRM Foundation . General Accounting Office ( 2000 ). Budget Issues: Budgetary Implications of Selected GAO Work for Fiscal Year 2001 . Washington, DC : General Accounting Office , pp. 277 – 9 . ( 2001 ). Human Resources and the Law: The Complete Guide with Supplement . Englewood Cliffs, NJ : Prentice‐Hall . ... log in or subscribe to read full text

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