davis-bacon law act

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Davis-Bacon and Related Acts

Under the American Recovery and Reinvestment Act of 2009

“ARRA”

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Davis-Bacon Act Objectives

Review Original Act

Summarize Changes

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ARRA 2009

Effective February 2009 Economic stimulus package

intended to provide a “jump start” to the U.S. economy in wake of the economic downturn

Worth about $787 billion Includes federal tax cuts,

expansion of unemployment benefits, and other provisions

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Davis-Bacon Act

Originally passed in 1931 under the Herbert Hoover Administration

Initiated to ensure fair treatment of workers during the Depression

Named after sponsors of the bill James Davis (Senator – PA) Robert Bacon (Representative- NY)

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Who is covered?

Applies to all businesses who: Employ Contractors and Subcontractors Perform work on federal construction OR federally

assisted contracts in excess of $2,000

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Employer Responsibilities

Pay laborers and mechanics not less than the prevailing wage rates and benefits in the area

Pay employees weekly and submit weekly payroll records

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Employer Responsibilities

Pay overtime to employees if the prime contract is over $100,000

Post the Davis-Bacon wage determination poster at work-site

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What are the “Related Acts”?

Federal – Aid Highway Acts Housing and Community Development Act Federal Water Pollution Control Act Plus 57 Other Acts!

New in 2009

Effective January 2009

If Federal Agencies are contracting for business using ARRA Funds: Ensure that all bids and resulting contracts contain

Davis-Bacon Labor standards and wage determinations

Workers must be paid at least the prevailing wage as determined by the Davis-Bacon Act

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Best Practices

• Post the Davis-Bacon wage determination poster at work-site

• Know what the prevailing wage rates and

benefits are in your area / geography. If in doubt, check with the Wage and Hour Division

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Food For Thought

The Davis-Bacon Act was suspended during Katrina (with little negative impact) and then reinstated 3 years later. With major disasters happening almost daily, what does this mean for the future of this act?

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Davis-Bacon Act Information

For additional information go to:

http://wagehour.dol.gov

gary@thevirtualhrdirector.com http://www.thevirtualhrdirector.com