December 17, 2020

This morning, the Department of Labor Wage and Hour Division issued four All Agency Memoranda (AAM) concerning Davis-Bacon prevailing wage rates.  AAMs are guidance on the application and interpretation of legal requirements. 

The first AAM (AAM 233) clarifies AAM 213 of March 22, 2013 to direct that when a wage determination contains fewer than three classifications in the relevant skilled craft or power equipment operator category, contracting officers shall evaluate whether a proposed new classification bears a “reasonable relationship” to the both the existing skilled craft and power equipment operator classifications that are in the wage determination. The second AAM (AAM 234) requests comments on the planned schedule for Davis-Bacon wage surveys for fiscal year 2022.  The third AAM (AAM 235) rescinds AAM 212 of March 22, 2013 setting forth standards for the application of Davis-Bacon to construction survey crews.  The fourth AAM (AAM 236) raises from $1 million to $2.5 million the threshold for determining if more than one wage determination applies to a construction project because there is “substantial” construction in a category of construction that is different from the overall project but does not exceed 20% of the projects overall cost. 

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