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The Davis-Bacon Act: Institutional Evolution and Public Policy (CRS Report for Congress)

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Release Date Nov. 30, 2007
Report Number 94-408
Authors William G. Whittaker, Domestic Social Policy Division
Source Agency Congressional Research Service
Summary:

In 1931, at the urging of the Hoover Administration, Congress adopted the Davis-Bacon Act. The measure set certain minimum labor standards for workers employed in federal contract construction: notably, that contractors must pay their employees not less than the locally prevailing wage. The threshold for coverage is currently $2,000 and up. Construction crafts are divided into four components: commercial buildings, highways, residential, and heavy construction. Locality, in this case, is normally the equivalent of a county, though other options are possible. In addition, the Copeland "anti-kickback" Act of 1934 sets reporting requirements intended to aid in Davis-Bacon enforcement and compliance. Through the years, the Davis-Bacon requirements have been applied to dozens of program statutes that involve federal and federally assisted construction. Davis-Bacon has been amended over the years to expand its coverage and to strengthen enforcement. It has generally enjoyed strong bipartisan support throughout its history; but, the act has also sparked continuing controversy and opposition, especially from non-union contractors. Issues of policy concerning the act, raised initially in the 1920s and 1930s, continue to be debated into the 21st century. Seventy-five years after its enactment, questions remain about its economic impact, its scope and pattern of coverage, and its administration. Since the early 1950s, the act has been variously the focus of rulemaking, litigation, and legislative interest and, through the past quarter century, of all three. In 1934 and in 1971, the act was generally (but temporarily) suspended by Presidents Roosevelt and Nixon. From October 1992 until March 1993, it was suspended by President George H.W. Bush, but only for locations affected by Hurricanes Andrew and Iniki. From September into November 2005, it was suspended by President George W. Bush for areas affected by Hurricane Katrina. Into the early 1990s, bills were introduced that would have repealed the Davis-Bacon and Copeland Acts outright, had they been adopted, eliminating the prevailing wage and reporting requirements from program statutes into which they have been incorporated. In the mid-1990s, a shift in political control in Congress seemed to forecast victory for those favoring repeal. But ultimately, the prevailing wage issue proved to be bipartisan and the statutes (Davis-Bacon and Copeland) remained unchanged. Prevailing wage/Davis-Bacon provisions have continued to be included in federal program statutes where construction has been a program component. With the advent of the 21st century, the Davis-Bacon debate has continued sporadically, but its focus, increasingly, has been upon the prevailing wage standards of program legislation. Given the experience of the past seven decades, it seems likely that Davis-Bacon will remain an issue of public policy for the immediate future.