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Labor Standards

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1. What is the Davis-Bacon Act?

Enacted in 1931, the Davis-Bacon Act (DBA) is intended to protect communities and workers from the economic disruption caused by competition arising from non-local contractors coming into an area and obtaining federal construction contracts by underbidding local wage levels.

The DBA requires that “each contract over $2,000 to which the United States or the District of Columbia is a party for the construction, alteration, and/or repair (including painting or decorating) of public buildings or public works shall contain a clause setting forth the minimum wages to be paid to various classes of laborers and mechanics employed under the contract.”

2. What are prevailing wages?

The term refers to the establishment of the Basic Hourly Rate of pay plus the hourly benefits associated with the employee wages.

Basic Hourly Rates are the actual take home amount while the hourly benefits are the intangible part of pay for items such as vacations, dental, health plans and retirement funds.

3. What is a wage decision?

Wage determinations are based on information obtained by the Department of Labor from studying local wage conditions and data.

The wage decision specifies the basic hourly wage rates and fringe benefits determined to be prevailing for the described work classifications of laborers and mechanics employed on construction projects of a similar character and in specific localities.

4. Who monitors prevailing wages?

The City of Saint Paul’s Human Rights and Equal Economic Opportunity (HREEO) Department reviews Prevailing Wages through payroll data that is certified electronically via the Contract Compliance System by the contractor and subcontractors for each week of work performed.

City of Saint Paul Compliance Officers will also make on-site visits to various construction sites and conduct interviews directly with employees working on-site.

5. How can I obtain the latest DBA wage decisions?

Wage decisions can be obtained by submitting a written request to the Labor Standards Compliance Officer at the City of Saint Paul’s Department of Human Rights and Equal Economic Opportunity (HREEO).

The Compliance Officer will obtain the applicable prevailing wage rate.

NOTE: the current prevailing wages may differ from the actual wages that are “locked in” once the project is awarded.

6. What are the expectations of contractors who must comply with Davis Bacon Federal Prevailing Wage criteria?

DBA requires that all participating contractors electronically certify (employee wages, benefits, classifications, etc.), submit, and maintain payroll records for the project.

Contractors will also submit site logs and allow Compliance Officers access to employees when conducting on-site employee interviews.

Participating contractors must post the U.S. Secretary of Labor’s Wage Poster and Wage Decision.

The poster must be displayed in a conspicuous place at the job site.

7. Are apprentices subject to the Davis Bacon wage requirements?

Apprentices can be paid less than the prevailing wage, but they must be enrolled in a State-approved apprenticeship program.

Apprentices must be covered hour-for-hour by a supervising journey worker (e.g. if you have 3 apprentices on site, you need 3 journey workers on site. If one journey worker leaves the site, you have to pay one apprentice journey worker wages).

The maximum number of apprentices on the project cannot exceed the ratio of apprentice to journey workers allowed in the approved apprenticeship program.

Before Apprentices can work on a site, the contractor must submit the Apprenticeship Agreement and current level of advancement, as well as a copy of the approved program wage rates and ratios.

8. What are the possible penalties for non-compliance with Davis Bacon wage requirements?

Payment of money owed for project work can be withheld or reduced. The non-compliant contractor will be required to submit wage restitution to the effected employee(s).

A habitual non-compliant employer is also subject to debarment from future contracting opportunities for up to 3 years.

In extreme circumstances, the non-compliant contractor can face civil and criminal charges.