DOL to Update Prevailing Wage Laws
Date Posted: August 13, 2023
Posted In: News, Workforce,
From Construction Dive: The Department of Labor on Thursday made public its final rule updating Davis-Bacon prevailing wage regulations. The 716-page document says that the rule will be published in the Federal Register on Aug. 23, and will be effective 60 days from then, Oct. 23.
It notes that the updates will apply to contracts entered after this date but, with limited exceptions, will not affect contracts entered into before then. Despite the upcoming publication of the final rule, the changes are sure to face legal challenges, according to Roll Call.
The department received 40,938 comments during a 60-day comment period that began in March 2022, according to the document, which noted the reasoning behind the update.
“As the first comprehensive regulatory review in nearly 40 years, revisions to these regulations will promote compliance, provide appropriate and updated guidance and enhance their usefulness in the modern economy,” the document reads.
Dive Brief:
- The Department of Labor announced Tuesday that it will publish a rule updating the Davis-Bacon Act, which sets the prevailing wages contractors must pay workers on federal projects.
- The rule, first announced in March 2022, will restore the DOL’s definition of prevailing wage to make it equivalent to the wage paid to at least 30% of workers, rather than 50% of workers, in a given trade in a locality, according to a White House fact sheet.
- The move is aimed at raising the hourly earnings of workers for prime contractors and subcontractors on projects that receive federal funding through legislation such as the Infrastructure Investment and Jobs Act and the CHIPS Act, but construction groups said it will raise the cost of infrastructure projects for taxpayers.