From County to State: Expanding the Area of Wage Determination Under the Davis-Bacon Act
The Davis-Bacon Act (DBA) has been instrumental in ensuring that workers on government construction projects receive fair wages that reflect local standards. However, the process of determining these wages has evolved over time, particularly in how the "area" of wage determination is defined. Recent revisions to the Act have expanded this definition, offering a more comprehensive approach to wage determination that spans from individual counties to entire states.
Historical Approach to Wage Determination
Traditionally, the Davis-Bacon Act's wage determination process was rooted in the county where the construction project was located. The "area" from which wage data would be drawn was typically the county itself. However, if current wage data within the county was insufficient to make a wage determination, the Act allowed for consideration of wages from surrounding counties. In cases where even surrounding counties lacked adequate data, the Administrator could consider wage data from similar construction projects in comparable counties or groups of counties within the state. If statewide data was still insufficient, wages from projects completed over a year prior could be considered.
Challenges with Multi-County Projects
One of the challenges with the traditional approach was the treatment of projects spanning multiple counties. In such cases, different wage determinations for each county would be attached to the contract. This meant that contractors might have to pay different wage rates to the same employees as their work crossed county boundaries. Critics argued that this was inconsistent with how workers were paid on non-DBA projects and was deemed "illogical" by some industry representatives.
The New Approach: Expanding the "Area"
To address these challenges, recent revisions to the Davis-Bacon Act have expanded the definition of "area" for wage determination. Now, for projects that require work in multiple counties, the "area" can include all the counties where the work will be performed. This allows for a single wage determination for the entire project, ensuring consistency in pay rates across counties.
This change is particularly beneficial for "horizontal projects" like highways, which often span multiple counties. The new approach recognizes that workers for such projects are likely drawn from all the counties involved, making it more logical to consider the entire project area as a single labor market.
Conclusion
The recent revisions to the Davis-Bacon Act's wage determination process reflect a more modern and logical approach to defining the "area" for wage determination. By expanding the definition from individual counties to potentially entire states, the Act ensures a more consistent and fair wage determination process, especially for projects that span multiple jurisdictions. As the construction industry continues to evolve, it's essential that legislation like the Davis-Bacon Act adapts to meet the changing needs of workers and contractors alike.