DOL Announces Legislation Update Aimed at Increasing Construction Workers’ Pay

On August 7, the U.S. Department of Labor (DOL) announced the publication of a rule updating the Davis-Bacon Act, which uses DOL-administered localized pay surveys to set the prevailing wage in federally funded projects, Construction Dive is among outlets to report. Originally passed in 1931, the act states that at least 51% of surveyed wages be within a “same or similar” margin; if they are not, a weighted — as opposed to a simple — average is used, resulting in more frequent occurrences of low wages dragging down the overall rate. The latest changes restore the DOL’s definition of prevailing wage used until 1983 to make it equivalent to the wage paid to at least 30%, rather than 50%, of workers in a given trade in a specific locality. It is aimed at raising hourly wages for workers employed by general contractors and subcontractors (including elevator contractors) that receive federal funding through legislation. While some construction groups expressed concern about red tape and taxpayers having to foot more of the bill for infrastructure projects, several elevator company leaders with whom ELEVATOR WORLD spoke said they generally support the move, as it “prioritizes the well-being and fair compensation of workers,” according to Champion Elevator President and CEO Don Gelestino.  Hudson Elevator Group President Brian Farley added that the Davis-Bacon Act “levels the playing field and increases transparency in the bidding process.” Look for more in EW soon about this important topic.