December 17, 2021

The Department of Labor’s Wage and Hour Division (WHD) explains that a vast majority of the federal funding authorized by the infrastructure bill requires contractors and subcontractors to pay Davis-Bacon prevailing wages and fringe benefits on covered construction projects. Specifically, the new law applies Davis-Bacon labor standards to federally-funded or assisted construction projects in three different ways: (1) by adding funding to existing programs authorized under Davis-Bacon and Related Acts; (2) by adding new projects to existing programs authorized under Davis-Bacon and Related Acts; and (3) by application to all construction projects receiving funding under programs created or funded through the new infrastructure law.

WHD also highlights that the new law also requires funding agencies to notify potential recipients that Davis-Bacon and Related Act standards apply to the project. Funding agencies and recipients are jointly responsible for ensuring the applicable clauses and wage determinations are included in the contracts and to ensure that projects comply with federal labor laws.

Among other requirements, contractors and subcontractors must: (1) pay at least the applicable prevailing wage; (2) maintain an accurate record of hours worked and wages paid, including fringe benefit contributions; (3) submit certified payrolls to the contracting agency or funding recipient; and (4) ensure that the required contract clauses and applicable wage determinations are incorporated into any lower-tier subcontracts.

Additional information regarding the applicability of Davis-Bacon and Related Acts to the Bipartisan Infrastructure Law is available on the WHD website here or by calling 1-866-4USWAGE (1-866-487-9243) between 8am and 5pm in your time zone.

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