Which act requires paying prevailing wages in federally-financed projects?

The Davis-Bacon Act is the legislation that mandates the payment of prevailing wages on federally financed construction projects. Enacted in 1931, this act ensures that workers on these projects receive wages that are at least equal to the local prevailing wages for various types of construction work, including labor and mechanics. This is designed to protect the local labor market and ensure fair wages for workers engaged in federal contracts.

When a project is funded by the federal government, contractors are required to pay their workers according to wage determinations issued by the Secretary of Labor, which reflect the standard pay rates for comparable work in the area where the project is taking place. The act also allows for compliance checks and audits to ensure adherence to these wage requirements, highlighting the government’s commitment to fair labor practices.

This law significantly influences labor standards for federal projects and acts as a safeguard, ensuring that employment conditions do not undermine local wage levels, which is why the Davis-Bacon Act is central to understanding wage requirements in federally funded construction endeavors.