Increasingly members are confronting the issue of compliance with the Federal Davis Bacon Act, which requires payment of “prevailing wages” on federally funded or assisted construction contracts in excess of $2000. This now includes projects funded by the American Recovery and Reinvestment Act (several states also have state prevailing wage laws, including VT and Mass). Contractors must pay at least the amount listed in the Davis Bacon Determination. The “prevailing wage” is a combination of the basic hourly rate and fringe benefits. The cash wage paid to the worker must be at least the hourly rate in the determination. Fringe benefits in the determination must also be included in the cash wage paid to the worker unless the employer pays for bona fide fringe benefits for the worker. Fringe benefits include medical, pension or retirement, life insurance, disability, vacation and holiday pay, registered apprenticeship or other bona fide fringe benefits, but only where the contractor is not required by federal, state or local law to provide the benefit. The amount of the fringe must be calculated as an hourly amount and the amount can offset the amount in the Davis Bacon fringe benefit determination.

Contractors can access the most recent Federal Davis Bacon rates by state, county and type of construction by going to www.wdol.gov. There are many questions concerning compliance with the Davis Bacon regulations. Please contact the ABC chapter office if you have any questions or need assistance.