If your organization works under federal or federally assisted contracts, recent changes to the Davis-Bacon and Related Acts (DBRA) may affect how you manage pay and compliance on covered projects.
The U.S. Department of Labor (DOL) issued a major update to the Davis-Bacon regulations in August 2023, which took effect that October. These updates modernized how prevailing wages are determined and enforced for construction, alteration, or repair projects funded or supported by the federal government.
However, as of June 24, 2024, a nationwide preliminary injunction has temporarily paused three specific parts of that final rule:
- The definition that distinguishes material suppliers from contractors and subcontractors.
- The requirement to pay prevailing wages to delivery truck drivers for certain onsite time.
- The provision states that DBRA automatically applies even if omitted from a federal contract.
While those three provisions are on hold, the rest of the Davis-Bacon rule remains in effect. The DOL has also clarified that coverage should not be enforced for truck drivers performing offsite delivery work, such as picking up or delivering materials, unless those drivers are also completing construction work onsite.
Why It Matters for Employers
If your organization has federal contracts or receives federal assistance, these developments could impact your wage, classification, and subcontractor practices. Even with the injunction, the Davis-Bacon Act and related laws are still active and enforceable. Employers must continue to:
- Pay prevailing wages and fringe benefits based on local rates.
- Provide overtime pay (time and a half) for all hours worked over 40 in a week for contracts exceeding $100,000, as required under the Contract Work Hours and Safety Standards Act.
- Follow any applicable overtime rules under the Fair Labor Standards Act (FLSA).
What Employers Should Do Now
- Stay informed as the court proceedings continue, since the scope of the injunction could change.
- Review your current federal contracts and subcontractor agreements to confirm compliance.
- Audit wage classifications and timekeeping processes to ensure accurate pay for covered employees.
The DOL continues to enforce the core Davis-Bacon standards. Staying proactive now helps protect your organization from compliance issues later while ensuring that employees working on federally funded projects are paid fairly and transparently.
