What type of wages does the Davis-Bacon Act require pay scales to be based on?

What type of wages does the Davis-Bacon Act require pay scales to be based on?

• A. Minimum wage standards
• B. Federal wage standards
• C. Prevailing wages
• D. Subcontractor wages

Answer: (C)

The Davis-Bacon Act requires that pay scales for laborers and mechanics working on federally funded construction projects be based on prevailing wages. This means that the wage rates must reflect the local prevailing rates paid to similar workers in the area where the work is being performed. The intent of the act is to protect local wage standards by ensuring that federal contracts do not undermine local labor markets. The focus on prevailing wages ensures that workers are compensated fairly based on the standard wages for their craft in their local labor market, which can vary from one geographic location to another. This approach helps maintain equitable labor conditions and can prevent wage disparity between federal projects and local private-sector jobs. In contrast, minimum wage standards, federal wage standards, and subcontractor wages do not fully capture the local economic conditions and labor market variations that prevailing wages represent. Each of these alternatives fails to provide the localized approach mandated by the Davis-Bacon Act, which prioritizes the wages that are commonly paid in the community for similar types of work.

The Davis-Bacon Act requires that pay scales for laborers and mechanics working on federally funded construction projects be based on prevailing wages. This means that the wage rates must reflect the local prevailing rates paid to similar workers in the area where the work is being performed. The intent of the act is to protect local wage standards by ensuring that federal contracts do not undermine local labor markets.

The focus on prevailing wages ensures that workers are compensated fairly based on the standard wages for their craft in their local labor market, which can vary from one geographic location to another. This approach helps maintain equitable labor conditions and can prevent wage disparity between federal projects and local private-sector jobs.

In contrast, minimum wage standards, federal wage standards, and subcontractor wages do not fully capture the local economic conditions and labor market variations that prevailing wages represent. Each of these alternatives fails to provide the localized approach mandated by the Davis-Bacon Act, which prioritizes the wages that are commonly paid in the community for similar types of work.