The Davis-Bacon Act was released by Congress on March 3, 1931 and it ensures that local workers receive a fair wage and local contractors get a fair opportunity to compete in the local federal government contracts.
Durham, NC (PRWEB) May 01, 2015
A set of acts together, commonly referred to as the David-Bacon and Related Acts apply to various construction organizations which are engaged in constructing/altering/repairing public works or buildings*. The contractors and sub-contractors, under this Act, must pay their workers and laborers no less than the wages and fringe benefits prevailing locally.
This federal law mandates penalties for the contractors and sub contractors who violate the Davis-Bacon Act by either knowingly hiding or falsifying payroll records, or needed wage kickbacks paid to employees etc. These contractors and sub-contractors may be subject to termination of contract, get debarred from bidding on future contracts up to 3 years, or face civil/criminal prosecution. The performed work payments may also be stopped to pay off the workers and liquidated damages for violating acts such as Safety Standards Act and Contract Work Hours**.
Recent decisions made by the US Court of Appeals for the Federal Circuit have proven that thorough record keeping practices and prompt owner responses are as applicable to cases that involve government withholding of payment for alleged Davis Bacon Act violations, differing site conditions, changes, disruptions and delays***.
Some typical problems which lead to penalties under Davis-Bacon Act are as follows****:
- Misclassifying mechanics and laborers;
- Failing to pay full wages for all hours worked, including fringe benefits;
- Inadequacy in record keeping;
- Failing to maintain a bona fide apprenticeship program’s copy and also their individual registration documents;
- Failing submission of weekly certified payrolls; and
- Failing to post applicable wage determination and the poster of Davis-Bacon.
The penalties/sanctions that may be put on the contractors or the organizing body per Davis-Bacon Act are:
- Withholding of contract payments so that a sufficient amount is collected to satisfy liabilities for wage underpayments and liquidated damages that the workers and work has undergone. This is according to the Contract Work Hours and Safety Standards Act (CWHSSA).
- Termination of contract.
- Debarment from all future contracts up to 3 years.
The contractors and subcontractors have the liberty to challenge the violation and debarment and report it to an Administrative Law Judge (ALJ). The ALJ decision may be appealed by interested parties to the Administrative Review Board of the Department.
In order to provide a clear understanding on the Davis-Bacon Act with relation to the prevailing wage law, AudioSolutionz, the country’s leading industry information provider, is conducting a live audio conference on Tuesday, May 5, 2015, where expert speaker Susan Fahey Desmond will be explaining how to determine the prevailing wage law accurately in Federal contracts. An overview of the Davis Bacon Act will be provided in the session and participants will get a fair idea on how to achieve compliance with the Act.
For more information, visit http://www.audiosolutionz.com/hr-compliance-employment/davis-bacon-act.html
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Source(s):
*http://www.dol.gov/whd/govcontracts/dbra.htm
**http://trentcotney.com/construction/the-davis-bacon-act-what-you-need-to-know/
***https://www.lorman.com/resources/davis-bacon-act-disputes-the-importance-of-documentation-15814 (Released: September 20, 2005)
****http://www.dol.gov/whd/regs/compliance/whdfs66.pdf (Released April, 2009)