DOL Releases Updated Davis-Bacon Regulations

The Department of Labor’s (DOL’s) Wage and Hour Division has released a final rule updating the Davis-Bacon and Related Acts Regulations. The DOL indicates the rule is the first comprehensive regulatory review of the Davis-Bacon Act regulations in nearly 40 years and is designed to promote compliance, provide appropriate and updated guidance, and enhance the regulations’ usefulness in the modern economy.

The Davis-Bacon Act generally requires payment of locally prevailing wages under direct federal contract and for covered contractors and their subcontracts. The employer’s obligation can be met by paying the applicable prevailing wage entirely as cash wages or by a combination of cash wages and employer-provided bona fide fringe benefits—including pension and health benefits.

The rule is scheduled to be published in the Federal Register on August 23, 2023, and is generally applicable 60 days after publication.