By Steve Rizer
Paying the rates set forth in a union collective bargaining agreement does not necessarily ensure compliance with the prevailing wage rate under the federal Davis-Bacon Act. This is one of the key points that Littler Mendelson P.C.’s Van Allyn Goodwin made during a 90-minute webinar, entitled “Understanding the Davis-Bacon Act and Prevailing Wage Law on Government Contracts,” that WPL Publishing and L2 Federal Resources recently hosted.
“Sometimes there are folks who participate in these programs that are engaged in Davis-Bacon work, and oftentimes they presume that the wage rates that are provided for in their union contracts or collective bargaining agreements are going to automatically, in all situations,” comply with the prevailing wage rate under Davis-Bacon. “And, it’s not always true.”
Davis-Bacon and related acts apply to contractors and subcontractors performing on federally funded or assisted contracts in excess of $2,000 for the construction, alteration, or repair (including painting and decorating) of public buildings or public works. Davis-Bacon Act and related act contractors and subcontractors must pay their laborers and mechanics employed under a contract no less than the locally prevailing wages and fringe benefits for corresponding work on similar projects in the area. Davis-Bacon directs the U.S. Department of Labor (DOL) to determine such locally prevailing wage rates and applies to contractors and subcontractors performing work on federal or District of Columbia contracts.
“You must pay, as a contractor, the prevailing wage of the Davis-Bacon Act, and if it’s higher than the union collective bargaining agreement rate, then that’s what you’ve got to pay,” Goodwin said. “There’s no way around it legally.”
Goodwin also emphasized that “if your union contract rate is higher than the prevailing wage rate, then, generally, you must pay the union collective bargaining wage rate, even if it’s higher, unless there’s some feature in your collective bargaining agreement or the union has agreed that you need not pay that rate in the event the prevailing wage rate under the Davis-Bacon Act is lower.”
Also during the webinar, Goodwin discussed the types of construction projects covered by the Davis-Bacon Act, what must be included contracts addressing this issue, other federal laws that may apply, the conformance process, and other topics.
Part two of ConstructionPro Week's coverage of this webinar will focus on Davis-Bacon Act enforcement.
To purchase a recording of the program, visit http://constructionpronet.com/Products/2014Goodwin.aspx.
