Why it is Important to Understand the Davis-Bacon Act

Why it is Important to Understand the Davis-Bacon Act

Under the Davis-Bacon Law, contractors and subcontractors on federal jobs with a total estimate of over $100,000 are required to pay employees working on the job overtime benefits. The overtime rate under the law is one and a half times ( time and a half) the hourly prevailing rate. Overtime begins at every hour worked over 40 within a week. The law also states employees should be paid weekly and certified copies of all payroll records need to be sent to the government agency overseeing the project. The records should also be sent on a weekly basis.

Required Record Keeping

There are certain records that every contractor needs to keep required under Davis-Bacon. These records include a detailed record of the wage and hours of employees on the job kept for 3 years after job completion. This record must include name, social security number, and physical mailing address of each employee. Another record of each employee classification, hourly wage rate, and net amount of wages needs to be kept.

Informing Employees

Contractors are required by the Davis-Bacon Act to keep their employees notified of their workplace rights. The law states this should be done by hanging informational posters that fully state employee rights. Employees are also to be notified of the prevailing wage rates of all working classes in employment with the project contractor.

Read more: Why Davis-Bacon is Important – Doesn’t It Just Cost More?

Hiring Veterans For Federally Funded Projects

Davis-Bacon asks for federal contractors to have an affirmative action program to hire recently discharged veterans, veterans with disabilities, and Vietnam-Era veterans. Employers should maintain record of the number of veterans employed, their work category , and their hiring location.

If you are a contractor on a federal job it is very important to know all the requirements under Davis-Bacon.For more information on all things pertaining to the Davis-Bacon Act and Davis- Bacon pension plans please browse our website or contact us anytime.