Prevailing Wage

Prevailing wage laws like the Davis Bacon Act and more than 60 other federal statutes exist so that the purchasing power of the federal government is not used to depress local labor standards. This amount is typically based on non-union wage scales, so local wage and labor standards are not undermined. Contractors win federal contracts based on having the most productive, best equipped, best trained and most productive workforce.

Higher productivity lowers construction costs without lowering wages. Prevailing wage laws benefit blue-collar workers and their communities by:

  • Encouraging training.
  • Lowering the rate of injuries.
  • Promoting health care coverage.
  • Minimizing disruption to local labor markets.
  • Ensuring that minority and female workers receive prevailing wages.
  • Encouraging their participation in apprenticeship programs.