“Taxpayers have the right to expect that federal contractors understand their obligations and comply with the law,” said Susana Blanco, director for the department’s Wage and Hour division in San Francisco. “The department works to ensure workers are paid proper wages and benefits in a timely manner. The agency will take action to recover payment when workers are denied their rightful compensation. We do so to create a level playing field for employers, ensuring those who shortchange workers do not gain a competitive advantage.”
The DBRA requires all contractors and subcontractors performing work on federal and certain federally funded projects to pay their laborers and mechanics the proper prevailing wage rates and fringe benefits, as determined by the secretary of labor. On a Davis-Bacon Act project, the prime contractor is responsible for the compliance of subcontractors and lower-tier subcontractors.
The DBA “prevailing wage” is a combination of the basic hourly rate and any fringe benefits listed in a DBA wage determination. The contractor’s obligation can be met by paying at least the prevailing wage listed in the contract wage determination and each laborer and mechanic the applicable prevailing wage entirely as cash wages or by a combination of cash wages and employer-provided bona fide fringe benefits. Prevailing wages, including fringe benefits, must be paid on all hours worked on the work site.
Source: DOL
This information is intended to be
educational and should not be considered legal advice on any specific matter.
