The Role of the U.S. Bureau of Labor Statistics in the Davis-Bacon Act's Wage Revisions
The Davis-Bacon Act (DBA) is a critical piece of legislation that ensures fair wages for workers on government construction projects. The process of determining these wages is complex and multifaceted, involving various agencies and methodologies. Among them, the U.S. Bureau of Labor Statistics (BLS) has been mentioned in discussions and proposals related to the Act's wage revisions. Here's an exploration of the role of the BLS in the context of the Davis-Bacon Act.
The Traditional Wage Determination Process
The wage determination process under the DBA has historically been based on wage survey data collected by the Wage and Hour Division (WHD). This data is used to determine prevailing wage rates for various construction classifications. However, the process has faced challenges, such as delays in completing wage surveys and dissatisfaction with the county-based system for identifying prevailing rates.
The Proposal to Use BLS Data
Some stakeholders have opposed the traditional approach and urged the Department to use BLS data instead of WHD's wage survey program to determine prevailing wages. The argument for this approach is that BLS data could provide a more standardized and possibly more accurate reflection of prevailing wages in the industry.
However, the Department has declined to adopt this suggestion. The DBA authorizes the Administrator to choose the method for determining prevailing wage rates, and the Secretary has broad discretion in this matter. The decision to use the rule's periodic adjustment mechanism to incrementally improve the quality of certain underlying prevailing wage rates is considered reasonable and within the Department's statutory discretion.
WHD's Continuous Improvement Efforts
While the BLS data has not been adopted as the sole method for wage determination, WHD has been actively working to refine and improve its prevailing wage survey process. For example, as of March 2019, WHD had successfully reduced the time it takes to complete a wage survey by more than 50 percent since 2002. Other efforts include the use of a modal prevailing wage rate when 30 percent or more of the wages are the same, and the provision regarding variable rates that are functionally equivalent.
Conclusion
The role of the U.S. Bureau of Labor Statistics in the Davis-Bacon Act's wage revisions is a subject of discussion and proposal but has not been adopted as a primary method for wage determination. The Department has chosen to continue with its existing methodologies, focusing on incremental improvements and efficiency in the wage determination process.
While the BLS data offers an alternative perspective, the current approach under the DBA reflects a balance of various factors, including statutory discretion, historical practice, and the need for continuous improvement. The ongoing dialogue around the use of BLS data underscores the complexity of wage determination and the importance of a multifaceted approach to ensure fair wages for workers in government construction projects.