Does Your Construction Project Require Davis-Bacon Wages?

Contractors working on a construction project funded by the American Recovery and Reinvestment Act (or you have any hint that you are), you need to be aware of your responsibility to pay Davis-Bacon wages, commonly referred to as Prevailing Wages.

Section 1606 of the American Recovery and Reinvestment Act (ARRA) sets out the Davis-Bacon wage requirements:

"Notwithstanding any other provision of law and in a manner consistent with other provisions in this Act, all laborers and mechanics employed by contractors and sub contractors on projects funded directly by or assisted in whole or in part by and through the Federal Government pursuant to this Act shall be paid wages at rates not less than those prevailing on projects of a character similar in the locality as determined by the Secretary of Labor in accordance with subchapter IV of chapter 31 of title 40, United States Code."

The Department of Labor (DOL) has broadly interpreted Section 1606 (pdf) of American Recovery and Reinvestment Act (ARRA):
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ASK YOUR REPRESENTATIVE TO COSPONSOR THE GREEN JOBS IMPROVEMENT ACT

The American Recovery and Reinvestment Act of 2009 included $500 million in funding for the Green Jobs Act, which requires any training entity applying for new green jobs funding to partner with organized labor, effectively barring nearly 80% of Contractors in New Jersey from applying for Green Job training funds for their members.

To receive federal funding, this Act forces organizations to partner with labor unions. The problem: Nationally, organized labor only makes up 7.8 percent of the private sector workforce.

Representative John Kline (R-Minn.) introduced the Green Job Improvement Act which would amend the Green Jobs Act to make any accredited training program, regardless of labor affiliation, eligible to receive Green Job training grants.

Click Here to Read More about the Green Jobs Act

Please click on "Take Action" to contact your Representatives and urge them to cosponsor H.R. 2026, The Green Jobs Improvement Act.

If the Green Jobs Act is not fixed, over 90 percent of the private sector workforce will not be able to compete in one of the largest growing fields of construction.