What does the Davis-Bacon Act require?

The Davis-Bacon Act mandates that contractors and subcontractors performing work on federally-financed or assisted construction projects must pay their laborers and mechanics prevailing wages. This means that the wages paid must be no less than the local prevailing wage for similar work in the area, ensuring that workers on federal projects receive fair compensation that reflects local labor market conditions.

The Act aims to protect local wage standards and prevent contractors from undercutting wages by bringing in workers from outside the area who might be willing to work for lower rates. This law highlights the importance of fair labor practices in government-funded construction, ensuring that all workers are compensated appropriately for their labor, thereby supporting local economies and maintaining competitive wage levels.

Other options do not align with the specifics of the Davis-Bacon Act. For example, while minimum wage is crucial in many contexts, the Act focuses specifically on prevailing wages rather than a universal minimum. Additionally, it does not require the employment of only unionized laborers, nor does it directly address employment discrimination, which is governed by separate legislation. The emphasis on prevailing wages reflects the Act's purpose of safeguarding labor rights in the context of federal projects.