The Department of Labor is issuing a final rule to update the Davis-Bacon and Related Acts Regulations. These changes aim to modernize wage rules in construction projects, making them more consistent, fair, and up-to-date. The key points of this update include:
1. Reason for the Update: The rules have not seen significant changes in nearly 40 years, and this update is intended to bring clarity and consistency to federal construction projects, given the evolving landscape of construction laws and contracts.
2. Prevailing Wage Determination: The rule reverts to a “three-step process” for determining prevailing wages, with provisions for rates when no clear rate exists.
3. Regular Wage Rate Updates: Certain wage rates can be adjusted every three years based on economic data to keep them current.
4. State and Local Wage Rates: State or local wage rates can be used if they meet specific criteria, preventing duplication and ensuring current rates.
5. Reduced Conformance Requests: The rule reduces the need for conformance requests by listing wage and fringe benefit rates for certain jobs.
6. Flexible Area Definitions: The rule allows more flexibility in defining areas for wage determinations, including multi-county and state highway districts.
7. Wage Determinations for Contract Changes: When contracts change significantly, the most recent wage determination must be included.
8. IDIQ Contracts: Wage determinations for IDIQ contracts need annual updates or for contracts not tied to specific project completion.
9. Multiple Wage Determinations: If a contract covers various areas or types of construction, wage determinations for each applicable area or type must be included.
10. Construction Plan Reporting: Agencies using DBRA wage determinations must report construction plans for the next three fiscal years.
11. Energy Infrastructure Projects: Certain energy infrastructure projects are clarified to be subject to DBRA standards.
12. Demolition Projects: Demolition projects related to construction fall under DBRA requirements.
13. Survey Crews: No changes are made to how survey crew members are classified under DBRA.
14. Site of the Work Definition: The rule modestly increases coverage, ensuring that off-site construction related to a project is covered.
15. Flaggers: DBRA requirements apply to flaggers involved in redirecting traffic during construction projects.
16. Truck Drivers: Truck drivers can be subject to DBRA requirements based on the time spent on-site.
17. Material Supplier Exemption: Employees of material suppliers are usually exempt from DBRA coverage, even when handling material-related tasks.
18. Recordkeeping Updates: Contractors must maintain records for at least three years after contract completion, with provisions for electronic signatures and certified payroll submissions.
19. Apprentices: Wage and ratio standards for apprenticeships apply based on the location of the work.
20. Automatic DBRA Application: The rule allows for automatic DBRA application to covered contracts and compensates contractors for any additional costs incurred.
21. Fringe Benefit Annualization: Fringe benefits must be calculated annually, with exceptions for certain pension plans.
22. Unfunded Plans: Contractors must seek approval for using unfunded benefit plans for DBRA credit.
23. Apprenticeship Program Costs: Costs of apprenticeship programs can be counted toward DBRA fringe benefit obligations.
24. Administrative Expenses: Contractors cannot use DBRA credit for their own administrative expenses related to fringe benefit plans.
25. Anti-Retaliation Provisions: Anti-retaliation measures are introduced to protect workers who report DBRA violations.
26. Cross-Withholding Provisions: Funds can be withheld from any contract held by the same prime contractor for labor violations on other contracts.
27. Debarment Provisions: A consistent debarment standard is established for DBA and Related Acts-covered contracts, streamlining the process.
28. Expanded “Site of the Work” Definition: The definition includes off-site facilities used exclusively or temporarily for a project, slightly increasing DBRA coverage.
29. Prime Contractor Definition: The new definition includes entities involved in a construction contract, ensuring accountability for labor standards on projects with single-use entities like affordable housing developments.
These changes aim to bring clarity, fairness, and efficiency to federal construction projects and labor standards.
