Two Top U.S. Research Organizations: Repealing Davis-Bacon Act Would Save 0%

Posted by National Alliance for Fair Contracting on

MARCH 9, 2017
Published by Frank Manzo

The Brookings Institution and Wilson Center are two of the top 10 research organizations in the United States.

Together, these nonpartisan organizations have relaunched The Fiscal Ship, an online “game” that challenges people to put the federal budget on a sustainable course over the next 25 years. Picking from the menu of tax and spending options can be pretty eye-opening for many Americans.

Embedded in the game is one interesting policy option called “repeal federal construction wage law.” Picking this option means that you’d repeal the Davis-Bacon Act, which requires that workers on federally-assisted construction projects be paid the local prevailing wage. The posited argument for repeal is that it would save the government money. The argument against repeal is:

“This is just another way to push down wages of hard-working folks. Davis-Bacon blocks out-of-town firms from parachuting in with low-paid workers and under-cutting local contractors. It could lead to lower-quality work by less-skilled workers.

Interestingly, if you play the game and only choose to repeal the federal prevailing wage law from the list of tax and spending options, your plan results in a 0% change in federal revenue and a 0% change in federal spending. The game gives you a positive mark if your goal is to shrink government but a negative mark if you goal is to reduce inequality.

Ultimately, your plan gets declined as not helping to fix the budget.

(Read More)

US LABOR DEPARTMENT RECOVERS $147K IN BACK WAGES FOR 21 OHIO TRADE WORKERS EMPLOYED UNDER FEDERAL CONTRACT

Posted by National Alliance for Fair Contracting on

WHD News Release: 07/11/2016

Release Number: 16-1439-CHI

CINCINNATI, Ohio – Pipefitters and bricklayers constructing the Viking Village Shared Facility Pool in Sharonville under a federal contract will recover a total of $147,000 in back wages and benefits following an investigation by the U.S. Department of Labor’s Wage and Hour Division.

Federal investigators found Gall Construction of America LTD underpaid the workers up to $17 per hour in salary and benefits, and violated provisions of the Davis-Bacon and Related Acts and the Contract Work Hours and Safety Standards Act, which govern wage rates for projects receiving federal funds. The company operates as Acapulco Pools.

The division determined the company classified 21 bricklayers and pipefitters as general labors and failed to pay prevailing wages, fringe benefits and overtime at the rate due for their job titles. Gall also failed to keep accurate time and payroll records for employees. To resolve these violations the company agreed to pay the workers the monies owed in back wages and benefits.

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USDOL Prevailing Wage Seminars for 2016

Posted by National Alliance for Fair Contracting on

Join us at a Prevailing Wage Seminar in your region!

The Wage and Hour Division (WHD) Prevailing Wage Seminars (Prevailing Wage Seminars) are three-day compliance trainings designed for regional stakeholders (unions, private contractors, state agencies, federal agencies and workers). In these seminars, conference participants will learn about the following:

  • The Davis-Bacon Act and McNamara O’Hara Service Contract Act
  • Executive Order 13495 “Nondisplacement of Qualified Workers”
  • Executive Order 13658 “Establishing a Minimum Wage for Contractors”
  • The process of obtaining wage determinations and adding classifications
  • Compliance assistance and enforcement processes
  • The process for appealing wage rates, coverage, and compliance determinations

 

There is no fee to attend these seminars; however, space is limited. If you wish to attend, please click on the registration link for your desired location and follow the registration prompts. Each attendee must register separately. If registration is not yet open for the event you wish to attend, please check back. Please feel free to email WHDPWS@dol.gov if you have any questions.

Date Location
August 23 – 25, 2016 Portland, OR

For more information regarding the upcoming prevailing wage seminars, as well as information on the DBA and SCA visit http://www.dol.gov/whd/govcontracts or call the Wage and Hour Division’s toll-free helpline at 866-4US-WAGE (487-9243).

(Click Here to Register)

Labor Department investigating subcontractor on Trump’s Old Post Office project

Posted by National Alliance for Fair Contracting on
Drew Hanson, Digital Editor
Updated Jun 27, 2016, 10:18am EDT

The Labor Department is investigating whether a subcontractor working on Donald Trump’s Old Post Office hotel underpaid employees working on the downtown D.C. project, according to The Washington Post.

A Labor spokesperson told the Post the agency is looking into whether Brentwood-based glass specialist The Craftsmen Group was paying wages below those required by federal law on government construction projects.

The investigation was first reported last week by Politico. Workers on the Pennsylvania Avenue construction site, including one Craftsmen employee, told Politico that they and others were not receiving wages mandated by the Davis-Bacon Act.

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Oregon Issues Rules In Advance Of New Minimum Wage Law

Posted by National Alliance for Fair Contracting on

by Chris Lehman
June 15, 2016 5:56 p.m.
Updated: June 15, 2016 7 p.m.

Oregon employers have new guidance from the state on how much to pay their employees when the state’s minimum wage goes up next month. The Oregon Bureau of Labor and Industries released rules Wednesday meant to clear up one of the questions surrounding the legislatively-approved minimum wage hike.

The state’s minimum wage goes up July 1, but the amount of the increase depends on where you work. The wage goes up 25 cents per hour in rural counties and 50 cents per hour everywhere else. Next year, the state moves to a three-tiered system which gives workers in the Portland metro area a higher rate than the rest of the state.

But what about workers whose job sometimes takes them across the boundaries of the state’s three-tiered minimum wage map? Employers are worried they’d have to keep meticulous track of how much time any given worker spent in any given place.

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False Claims Act Case (United States, et al. v. Circle C Construction) Decided by Court of Appeals

Posted by National Alliance for Fair Contracting on
“We agree with the district court that the doctrine of primary jurisdiction does not foreclose plaintiffs’ FCA suit alleging Davis-Bacon Act violations where, as here, the government was not aware of the conduct at issue until after Wall filed his complaint, and thus did not deliberately bypass administrative procedures; the determination whether Circle C acted with the requisite intent to defraud the government in violation of the FCA does not necessitate technical, agency specific expertise; and the regulations explicitly provide that the falsification of payroll certifications may subject the contractor to civil prosecution under the FCA. Plaintiffs allege violations of the FCA under a false certification theory; this is not a dispute over how a particular type of work should be classified for purposes of wage determinations. Accordingly, deferral to  DOL was not warranted, and the district court properly declined to refer the case to the DOL pursuant to the primary jurisdiction doctrine…[W]e affirm the district court’s judgment with regard to liability, but reverse the award of damages and remand for a recalculation of the damages and further proceedings.”

 

(Read Decision Here)

Business-labor partnership tackles wage theft on public projects

Posted by National Alliance for Fair Contracting on

By Barb Kucera, Workday Minnesota
February 22, 2016

ST. PAUL – A joint effort between contractors and building trades unions has led to stronger enforcement of state laws on public construction – making a big dent in cheating and recovering nearly $1 million in stolen wages and benefits.

The partnership could be a model for addressing wage theft in other industries.

The federal government adopted wage standards for taxpayer-funded construction projects in 1931, when President Herbert Hoover signed the Republican-authored Davis-Bacon Act. In the decades since, many states, including Minnesota, and many local communities have followed suit.

Known as “prevailing wage” laws, these regulations require contractors bidding on publicly funded projects to pay wages and benefits in line with those of a particular location. In Minnesota, the state conducts surveys to determine the prevailing wages for different communities.

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Decisions of the DOL Administrative Review Board – April 2015

Posted by National Alliance for Fair Contracting on

DAVIS-BACON ACT; ARB FINDS IN SPLIT DECISION THAT A BALANCING OF BENEFITS’ TEST APPLIES TO DETERMINE WHETHER AN EMPLOYER IS OBLIGATED TO REIMBURSE EMPLOYEES FOR LODGING EXPENSES

DAVIS-BACON ACT; REIMBURSEMENT FOR LODGING EXPENSES SHOULD BE BASED ON ACTUAL EXPENSES WHERE EMPLOYER LEFT IT TO EMPLOYEES TO FEND FOR THEMSELVES; PER DIEM MAY BE CONSIDERED, HOWEVER, WHERE IT WAS A PARTIAL PAYMENT FOR SUBSISTENCE COSTS

(Read More)

(See Full Decision Here)

Sunshine Week: Beat reporter shines light on schools’ use of federal contracts

Posted by National Alliance for Fair Contracting on

By Robert Brauchle

March 16, 2015

 

Reporter Ryan Murphy began 2014 with a tip that Isle of Wight County Schools may have skirted federal regulations in the construction of the new Georgie D. Tyler Middle School.

Using the state Freedom of Information Act to access copies of contracts, emails and bid documents, the Daily Press Isle of Wight County beat reporter found that the school division had omitted wage standards from the construction contract that are required under the federal Davis-Bacon Act. The effect was to lower the cost of construction by underpaying local workers hundreds of thousands of dollars.

“I spent a couple of months digging into the documents and digging into legislation to figure out exactly what had happened,” Murphy said.

Murphy worked with school administrators to get the documents he needed.

(Read More)

Workers will get backpay for Windsor school construction

Posted by National Alliance for Fair Contracting on

By Ryan Murphy
November 25, 2014, 9:43 PM | ISLE OF WIGHT

Isle of Wight County Schools will pay backpay for hundreds of workers on a school construction job in Windsor who were shorted after the school system failed to include federal wage requirements in contract documents.

The move comes seven months after a Daily Press investigation revealed that the school system had appeared to violate federal law by failing to include the pay rate clauses. The school system used $7.5 million in federally subsidized bonds for the job, which came with strings attached, including paying workers on a pay scale based on local prevailing wages.

The Labor Department opened an investigation into the issue in May. A department spokeswoman said Wednesday that the investigation was still open.
The Isle of Wight School Board approved an order at Monday’s work session to take steps to comply with the federal law, called the Davis-Bacon Act, and to compensate construction workers for the difference between what they were paid and what federal law said they should have been paid.

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