Who does the Davis-Bacon Act primarily cover?

Who does the Davis-Bacon Act primarily cover?

• A. All construction companies
• B. Companies with government contracts over $2,000
• C. Unionized contractors only
• D. State and local governments

Answer: (B)

The Davis-Bacon Act primarily covers companies with government contracts valued over $2,000. This federal law mandates that contractors and subcontractors performing on federally funded or assisted contracts pay their laborers and mechanics a prevailing wage and fringe benefits, as determined by the Department of Labor. The intent behind this act is to ensure that workers on public works projects receive fair wages that reflect the local labor market. While certain other groups may interact with or be affected by the Davis-Bacon Act, such as unionized contractors or state and local governments, the critical focus is on those companies that hold government contracts of that financial threshold. This is essential in promoting equity in wage standards for laborers on public projects.

The Davis-Bacon Act primarily covers companies with government contracts valued over $2,000. This federal law mandates that contractors and subcontractors performing on federally funded or assisted contracts pay their laborers and mechanics a prevailing wage and fringe benefits, as determined by the Department of Labor. The intent behind this act is to ensure that workers on public works projects receive fair wages that reflect the local labor market.

While certain other groups may interact with or be affected by the Davis-Bacon Act, such as unionized contractors or state and local governments, the critical focus is on those companies that hold government contracts of that financial threshold. This is essential in promoting equity in wage standards for laborers on public projects.