A group of Republican lawmakers recently took steps to nix the U.S. Department of Labor’s (DOL) final rule updating the prevailing wages for construction workers on federal contracts. U.S. Rep. Lloyd Smucker, R-Pa., introduced a resolution of disapproval under the Congressional Review Act on Nov. 15. So far, 22 U.S. Representatives have signed on.
The prevailing wage is the minimum rate that an employer must pay to workers on federal construction projects in a particular location. We’ve gathered a group of articles on the topic from SHRM Online and other trusted sources.
Republicans Oppose Rule
The resolution of disapproval would nullify a regulation finalized by the DOL in August that changed how prevailing wages are calculated under the federal Davis-Bacon Act.
The DOL said the update to the law was necessary to ensure the agency can determine a prevailing wage rate more frequently. The law requires that contractors on certain public works projects pay their workers the prevailing wage or local wage rate plus fringe benefits based on the type of work being completed.
Republicans and business groups have criticized the measure, saying it will favor union contractors and raise the cost of federal construction projects. The resolution of disapproval may face some roadblocks with moderate lawmakers who are more sympathetic to unions.
Revising Prevailing Wage
The Davis-Bacon Act applies to nearly all federal projects for the construction, alteration, or repair of public buildings or public works. Even if a company does not work on federal projects, it may still be impacted by the changes in the DOL’s final rule, if it performs work on a federally funded state project.
The DOL revised the definition of “prevailing wage” to use the wage paid to at least 30 percent of the workers in a job classification in the area where the work is performed, if there is no majority of workers paid the same rate. The previous rule based the prevailing wage on the wage paid to a majority of workers.
(JD Supra)
Lawsuit Lands
The construction trade group Associated Builders and Contractors recently filed a lawsuit seeking to strike down the DOL’s final rule. The trade group said the rule will price many small businesses out of federal contracts by requiring businesses to pay more than local prevailing wages.
Unions and other supporters of the rule said it will guarantee workers fair pay and deter wage theft, particularly on the growing number of clean energy construction projects.
(Reuters)
Federal Agency Authority
The final rule gives the DOL authority to adopt prevailing wages determined by state and local governments, issue wage determinations for job classifications where insufficient data was received through the wage survey process, and update outdated wage rates.
The final rule also adds anti-retaliation provisions and strengthens the DOL's ability to withhold money from a federal contractor in order to pay employees their lost wages.
The number of construction workers affected by the new prevailing wages is likely to increase in light of the Bipartisan Infrastructure Law of 2021, which funded many federal infrastructure projects, Biden administration officials said.
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