The Davis-Bacon Act of 1931 requires contractors and subcontractors working on federally funded jobs to pay their laborers wages and benefits no less than what others locally pay their workers for similar projects. This is called the “prevailing” wage. Under Davis-Bacon, contractors can pay this wage out as a combination of cash and fringe benefits.
Davis-Bacon generally applies to contracts in excess of $2,000 to which the U.S. government or District of Columbia is a party. It includes construction, alteration or repair of public buildings and public works. It also requires the contractor or subcontractor to display the relevant wage scale prominently at the work site.
Essentially, this means any job that manual or physical in nature is covered by the Davis-Bacon Act. The job site itself also matters. For example, if a contruction project has items that can be pre fabricated in an off site area that is used by the contractor for other jobs, this time worked would not be impacted by the Davis-Bacon act. For government contract holders, it is very important to understand these differences to ensure your sub contractors are always getting to correct amount of wages. Verus Health Partners can help you define proper wages, but health related coverage as well.
Verus Health Partners is the preferred choice on the Space Coast for Government Contract work. Our team of friendly and knowledgable agents will help ensure your project is successful by evaluating your unique situation and requirements to be met.
Contractors and subcontractors who do business with a city or county that has a living wage ordinance must pay their employees at least a certain hourly rate and comply with other provisions of the ordinance. This also includes offering health benefits, providing leave, maintaining adequate records, and posting notice about living wage provisions.
A living wage ordinance requires employers to pay wages that are above federal or state minimum wage levels. It is designed to meet to meet basic subsistence needs in a particular geographic area. Only a specific set of workers are covered by living wage ordinances. Generally speaking those employed by businesses that have a contract with a city or county government or those who receive economic development subsidies. The thought process behind such ordinances is that local governments should not contract with companies who pay poverty level wages. It prevents underbidding during the initial contract phase as well.
At Verus Health Partners, we can help you assess your coverage levels to ensure your bid is accurate and profitable.