September/October 2023 - 127

BRIAN S. WOOD, PARTNER
SMITH CURRIE
LEGALLY SPEAKING
DOL Issues Final Rule on Davis-Bacon
In the July/August edition of Deep
Foundations, this column addressed the Department of Labor's
(DOL) proposed rule substantially expanding the reach and
effect of the Davis-Bacon Act and related regulations. On
August 8, the DOL issued the final rule entitled " Updating the
Davis-Bacon and Related Acts Regulations, " which is
scheduled to be published in the Federal Register on August 23,
and will become effective 60 days after publication.
As a refresher, the Davis-Bacon Act (DBA) requires the
payment of locally prevailing wages and fringe benefits to
employees on federal construction contracts. Other statutes
(Related Acts) extend DBA prevailing wage requirements to
federally funded state and local projects.
The July-August edition focused on the proposed rule's
expansion of DBA to cover remote worksites where a
" significant portion " of the work takes place, even if the site
was not established for the project. With the publication of
the final rule, it is important for contractors and subcontractors
to understand other key changes to the DBA.
A significant change under the new rule is the
methodology used by the DOL to determine the prevailing
wage for occupations in various geographical areas. Since
1983, the DOL has applied a two-step process for
The July-August edition focused on the
proposed rule's expansion of DBA to cover
remote worksites where a " significant
portion " of the work takes place, even if
the site was not established for the project.
determination of prevailing wages. The first step was to
determine if 50 percent or more of the workers in a given
geographical area were paid the same rate. If so, that rate
would be the considered the prevailing wage. If not, the
second step would be to calculate a weighted average rate for
DEEP FOUNDATIONS * SEPT/OCT 2023 * 127

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September/October 2023

Table of Contents for the Digital Edition of September/October 2023

TOC
September/October 2023 - Intro
September/October 2023 - 1
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