Final Rule Effective for the Davis-Bacon Act

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Updating the Davis-Bacon and Related Acts Regulations
Oct. 23, 2023

Effective today, October 23, 2023, the U.S. Department of Labor implemented the final rule, “Updating the Davis-Bacon and Related Acts Regulations.” This implementation follows the official publishing of the final rule in the Federal Register on August 23, 2023.

The change in regulation provides greater clarity and enhances the Davis-Bacon and Related Acts (DBRA) regulations’ effectiveness in the modern economy. Updates to the regulations strengthen and streamline the process for setting and enforcing prevailing wage rates on federally funded construction projects. This ensures that when the federal government invests in infrastructure, it also invests in workers.

These regulatory changes improve the department’s ability to administer and enforce DBRA labor standards effectively and efficiently. These changes include:

  • Creating several efficiencies in the prevailing wage update system and ensuring prevailing wage rates keep up with actual wages, which over time would mean higher wages for workers.
  • Returning to the definition of “prevailing wage” used from 1935 to 1983 to ensure prevailing wages reflect actual wages paid to workers in the local community.
  • Periodically updating prevailing wage rates to address out-of-date wage determinations.
  • Providing broader authority to adopt state or local wage determinations when certain criteria are met.
  • Issuing supplemental rates for key job classifications when no survey data exists.
  • Updating the regulatory language to better reflect modern construction practices.
  • Strengthening worker protections and enforcement, including debarment and new anti-retaliation provisions.

Visit our website for more information on the Davis-Bacon Final Rule and the Davis-Bacon Act.

Davis-Bacon Regulations in the Federal Register

FAR Council Proposes New Rule on Project Labor Agreements for Major Construction Projects

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By Alexandra Barbee-Garrett, Peter J. Eyre & Thomas P. Gies on August 23, 2022

On August 18, 2022, the FAR Council issued a proposed amendment to the FAR implementing Executive Order 14063, Use of Project Labor Agreements for Federal Construction Projects, which requires the use of project labor agreements (PLAs) on any large-scale federal construction projects valued at or above $35 million unless an exception applies. The Order, and the proposed rule, also give agencies discretion to use PLAs on projects under that $35 million threshold.

In addition to expanding definitions of “construction,” “labor organization,” and “large-scale construction project” to align with E.O. 14063, the proposed rule would revise FAR 22.503 to reflect the change in policy that mandates agencies to require the use of PLAs when awarding large-scale federal construction contracts—including individual orders under Indefinite Delivery, Indefinite Quantity contracts—unless an exception applies. The proposed rule would make the PLA requirement a mandatory flow-down. The proposed rule would also allow agencies to include any additional agency-specific requirements in a PLA through FAR 22.504(b)(6), and would strike the current FAR 22.504(c), which grants agencies discretion to specify PLA terms and conditions.

Both the E.O. and the proposed rule implementing it provide an exception from the PLA requirements. The proposed rule would allow the senior procurement executive of an agency to grant a written exception to the PLA requirement in each of the following circumstances, as provided in the E.O.:

1. Requiring a PLA would not achieve economy and efficiency in Federal procurement, as described in 22.504(d);

2. Requiring a PLA would substantially reduce the number of potential bidders so as to frustrate full and open competition, i.e., where adequate competition at a fair and reasonable price could not be achieved; or

3. Requiring a PLA would be inconsistent with statutes, regulations, other E.O.s., or Presidential Memoranda.

This change in policy will become effective with the publication of the Final Rule, following a 60-day public comment period.

We will continue to monitor developments concerning this initiative.

(See Article)

U.S. DEPARTMENT OF LABOR ISSUES INDUSTRY-RECOGNIZED APPRENTICESHIP PROGRAM FINAL

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Agency: Employment and Training Administration
Date: March 10, 2020
Release Number: 20-386-NAT

WASHINGTON, DC -The U.S. Department of Labor today published a final rule that will help expand apprenticeships in the United States by establishing a system for advancing the development of high-quality, Industry-Recognized Apprenticeship Programs (IRAPs).

IRAPs are high-quality apprenticeship programs, recognized as such by a third-party entity under standards established by the department in the new rule. Through these programs, individuals will be able to obtain workplace-relevant training and progressively advancing skills that result in an industry-recognized credential, all while getting paid for their work. An IRAP is developed or operated by entities such as trade and industry groups, corporations, non-profit organizations, educational institutions, unions, and joint labor-management organizations.

“Apprenticeships are widely recognized to be a highly effective job-training approach for American workers and for employers seeking the skilled workforce needed in today’s changing workplace,” Secretary of Labor Eugene Scalia said. “This new rule offers employers, community colleges, and others a flexible, innovative way to quickly expand apprenticeship in telecommunications, health care, cybersecurity, and other sectors where apprenticeships currently are not widely available.”

Third-party entities interested in evaluating and recognizing high-quality IRAPs consistent with the department’s standards should follow the process outlined in the final rule to become Standards Recognition Entities (SREs).

As described in the final rule, many different types of entities may become recognized SREs, including trade groups, companies, educational institutions, state and local governments, non-profits, unions, joint labor-management organizations, and certification and accreditation bodies for a profession or industry. The rule also outlines the responsibilities and requirements for SREs, as well as the department’s standards that programs must meet to obtain and maintain IRAP status and sets forth how the administrator will oversee SREs.

Once recognized by the department, SREs will work with employers and other entities to establish, recognize, and monitor high-quality IRAPs that provide apprentices with industry-recognized credentials.

IRAPs will serve as a complement to the successful registered apprenticeship program that has been in place for over 80 years. The industry-led, market-driven SRE approach outlined in the final rule will give employers and other stakeholders additional flexibility necessary to expand the apprenticeship model into new industries and to address the diverse workforce needs of different industries and occupations. The rule prohibits SREs from recognizing IRAPs in the construction sector, which has the greatest existing utilization of registered apprenticeship programs.

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US Labor Secretary Thomas E. Perez announces final rule raising the minimum wage for federal contract workers

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Rule raises the minimum wage to $10.10 per hour for covered workers

WASHINGTON — Upholding President Obama’s promise to make 2014 a year of action to expand opportunity, reward work and grow the middle class, U.S. Secretary of Labor Thomas E. Perez today announced a final rule that raises the minimum wage for workers on federal service and construction contracts to $10.10 per hour. The final rule implements Executive Order 13658, which was announced by the president on Feb. 12, and it will benefit nearly 200,000 American workers.

“No one who works full time in America should have to raise their family in poverty, and if you serve meals to our troops for a living, then you shouldn’t have to go on food stamps in order to serve a meal to your family at home,” said Secretary Perez. “By raising the minimum wage for workers on federal contracts, we’re rewarding a hard day’s work with fair pay. This action will also benefit taxpayers. Boosting wages lowers turnover and increases morale, and will lead to higher productivity.”

The final rule provides guidance and sets standards for employers concerning what contracts are covered and which of their workers are covered. The rule also establishes obligations that contractors must fulfill to comply with the minimum wage provisions of the executive order, including record-keeping requirements. It provides guidance about where to find the required rate of pay for all workers, including tipped employees and workers with disabilities. Additionally, the rule establishes an enforcement process that should be familiar to most government contractors and will protect the right of workers to receive the new $10.10 minimum wage.

(Read More)

(Minimum Wage Executive Order Final Rule)

(PDF of Final Rule)

(PDF of Executive Order 13658)

(Secretary Perez Blog – A Promise Made and a Promise Kept)

OSHA announces new requirements for reporting severe injuries and updates list of industries exempt from record-keeping requirements

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WASHINGTON – The U.S. Department of Labor’s Occupational Safety and Health Administration today announced a final rule requiring employers to notify OSHA when an employee is killed on the job or suffers a work-related hospitalization, amputation or loss of an eye. The rule, which also updates the list of employers partially exempt from OSHA record-keeping requirements, will go into effect on Jan. 1, 2015, for workplaces under federal OSHA jurisdiction.

The announcement follows preliminary results from the Bureau of Labor Statistics’ 2013 National Census of Fatal Occupational Injuries*.

“Today, the Bureau of Labor Statistics reported that 4,405 workers were killed on the job in 2013. We can and must do more to keep America’s workers safe and healthy,” said U.S. Secretary of Labor Thomas E. Perez. “Workplace injuries and fatalities are absolutely preventable, and these new requirements will help OSHA focus its resources and hold employers accountable for preventing them.”

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(*Copy of BLS News Release)