Get a demo today

Davis Bacon Act, The Consequences of Failed Compliance

by | Jun 8, 2018

Davis Bacon Act, The Core Requirements of Compliance

To simplify understanding of the Davis Bacon Act, we submit the following definition: In accordance with specific federal construction contracts, contractors are required to pay employees as specified by the Secretary of Labor (Summary Davis Bacon Act). Now let us elaborate:

  • Employees who perform services under federal construction contracts that exceed $2,000 shall be paid in compliance with a minimum wage as determined by the Secretary of Labor
  • Such rate-of-pay requirements shall be established in accordance with a minimum wage associated with the prevailing going rate for similar work within each specific geographic area of application.

Davis Bacon Act, Consequences of Non-Compliance

In presentation of the requirements, the Davis Bacon Act appears clear, concise and without complication. Problem is: A wave of alleged abuse of defined wage and hour regulations washes over the construction industry, therein becoming a primary source of energy for the promotion of employment class actions. Too many federal public works contractor firms fail to gain a firm understanding on what it takes to ensure reliable Davis Bacon Act compliance. The consequences:

Successful litigants along with their respective legal counsel services are reaping huge sums of settlement fees, recoverable damages and attorney gain.

Assume, for a moment, that bidding, gaining and partaking of federal public works contracts is simple. What then could gum up the works? Look no further than what happens when contractors fail to meet expected process work regulations, including those defined by the Davis Bacon Act. You cannot afford to be out of compliance. The cost of non-compliance rises far above the significant price of excess administrative costs, legal fees and defense resources. Due to increased governmental involvement and enforcement of federal wage and hour laws, failure to comply may result in loss of the contract.

Nor does the Davis Bacon Act stand on an island by itself. Other compliance rules and regulations such as Executive Order 13673 also come into play (Fair Pay and Safe Workplaces, Executive Order 13673). The purpose of such pay and safety regulations is simple: Ensure that access and awarding of federal public works contracts are limited to those contractors who have a proven history of acceptable business ethics, satisfactory operating integrity and responsible universal compliance to current and previous regulations of labor activity.

Avoid Non-Compliance With Davis Bacon Act and More

Do not risk potential blacklisting. Acquire the software, communication and jobsite monitoring tools that can help you assure compliance with the diversity of federal and parallel workforce and employment directives.

Assignar compliance management software handles the details of tracking and reporting jobsite safety incidents, passing ISO audits and maintaining compliance with labor-specific regulations such as the geographically-based Davis Bacon Act. Dire consequences accompany failure in compliance with any and all governmental labor-related laws, restrictions and regulations. Let Assignar be your go-to for management and submission of certified payroll data. It’s about using a tool that accurately reflects and simplifies compliance while also advancing the benefits, wages and safety of your construction workers.

Learn more about Assignar operations management software.

Rick is a Growth Marketing Manager at Assignar.

Related Articles

Share This