Davis–Bacon Act of 1931

Leading to passage Prior to the passage of the federal Davis–Bacon Act (abbreviated DBA), other jurisdictions in the United States had passed laws that required that contractors on public works projects pay the wage that prevailed locally. "In 1891, Kansas adopted a law requiring that ‘not less than the current rate of per diem wages in the locality where the work is performed shall be paid to laborers, workmen, mechanics, and other persons so employed by or on behalf of the state of Kansas’ or of other local jurisdictions. Through the next several decades, other states followed suit, enacting a variety of labor-protective statutes covering workers in contract production." In 1927, a contractor employed African-American workers from Alabama to build a Veterans' Bureau hospital in the district of Congressman Bacon. Prompted by concerns about the conditions of workers, displacement of local workers by migrant workers, and competitive pressure toward lower wages, Bacon introduced the first version of his bill in 1927. Over the next few years, Bacon attempted to introduce variations on the prevailing wage bill 13 times. Finally, in the midst of the Great Depression, with local workers complaining losing jobs to those willing to work for lower wages, and additional complaints from Congressmen frustrated that their efforts to bring "pork barrel" projects home to their districts did not result in jobs for their constituents (and therefore political support from them), Sponsored in the Senate by former Labor Secretary Davis, it passed by voice vote and was signed into law on 3 March 1931. Unions said that the law lacked enforcement teeth, while contractors said that it was impossible to know beforehand what the prevailing wages were when submitting bids. The GAO summarized its argument as: This publication reflected an ongoing political debate. Concluding about the same time, the Carter Administration's Office of Management and Budget (OMB) and its Office of Federal Procurement Policy (OFPP) had formed a task force to review DBA and the Services Contract Act. Of the five changes, all were eventually upheld except for the change in reporting requirements. In addition to these changes, DBA prevailing wage principles have been included in more than 50 federal statutes. Little Davis–Bacon laws In addition to the federal law, several other jurisdictions have passed "Little Davis–Bacon" laws. Suspensions The Davis–Bacon Act allows for suspension by the President in case of emergency. This authority has been exercised four times since passage: twice in general, and twice in limited areas. • President Franklin D. Roosevelt suspended the Act in 1934 for three weeks to aid in the introduction of New Deal efforts • President George H. W. Bush initiated a suspension in Florida, Louisiana, and Hawaii. This suspension was not lifted until March 1993 by President Bill Clinton. The cited reason for the suspension was the need to provide as many employment opportunities as possible in the recovery from hurricanes Andrew and Iniki. • President George W. Bush suspended the Act for one month in Florida, Alabama, Mississippi, and Louisiana after Hurricane Katrina. ==Current practice==

The Davis–Bacon Act is part of the United States Code, codified as 40 U.S.C. 3141-3148. The Act covers four main areas of construction: residential, heavy, buildings, and highway. The agency responsible for collecting and disseminating the prevailing wage data is the Wage and Hour Division (WHD) of the United States Department of Labor (DOL). The procedure "involves four steps: (1) planning and scheduling of surveys, (2) conducting the surveys, (3) clarifying and analyzing the respondents' data and (4) issuing the wage determinations." Planning and scheduling surveys: In the third quarter of each year, the WHD distributes a Regional Planning Survey Report, published by the F. W. Dodge division of the McGraw-Hill Information Systems, to regional offices. The regional offices then consider the types of construction planned as well as the age of the current wage determination. This analysis determines when and where surveys will be conducted. Issuance of surveys: WD-10 survey forms are sent to contractors and subcontractors along with a cover letter requesting information. Letters and forms are also sent to members of Congress, trade associations, and building trade unions to solicit information from them. Compilation of data: WHD analysts then review the returned forms for completeness, ambiguity, and inconsistencies. If the information received is deemed to be inadequate, the scope of the survey may be expanded. For example, if it is determined that relevant projects have not been completed recently, or that the area is inadequately represented, WHD may conduct telephone surveys to increase the robustness of data. Publication of data: Once compiled and analyzed, the wage determinations are made publicly available. See, for example, the Department of Labor website set up for this purpose. ==Controversy==

Three areas of controversy have surrounded the Davis–Bacon Act since the 1950s. In the beginning, these were touched off because of the Interstate Highway System and the volume of military construction that took place in the Cold War. Furthermore, it is in the interest of local unions to respond to the surveys, since a predetermination of wage significantly below the union wage would allow non-union employers to bid successfully on contracts. Fraud In addition to claims of bias, researchers and investigators have found evidence of fraud. In 1995, the state of Oklahoma conducted an investigation into the WHD-provided prevailing wages being used in state projects. Oklahoma had a Little Davis–Bacon law that, in an attempt to save on administrative costs, adopted the federal standards. When the state office was notified that some rates had increased 162%, it requested information from the WHD. The WHD denied the Oklahoma Department of Labor access to the survey forms used to determine the wages, so the Oklahoma Department of Labor undertook a criminal investigation. According to Brenda Reneau, then-Commissioner of the Oklahoma Department of Labor, "This investigation found that grossly inaccurate information had been reported to the Federal Government by what the U.S. Department of Labor calls interested third parties. We found inflated numbers of employees on projects, inflated wage rates reported for these same non-existent workers and we found projects that were never built. We also noticed what appears to be a pattern in the reporting method on many of the wage survey forms, as our visual presentation will show here today." One contention is that higher paid labor may be paid more because they have superior skills and are more productive. Under this assumption, a union journeyman would be worth the additional money because he works faster, more accurately, and with less supervision than an inexperienced worker. For example, four union journeyman paid $25 per hour might perform as well as or better than five entry level workers being paid $20 per hour. Others point out that federal projects tend to be more complex and require more skilled labor than on either private or state projects. Yet another counterpoint is that by inflating wages, such requirements direct more income into the middle class rather than paying rock bottom dollars to unskilled labor through federal programs while supporting their families through social service programs. Racism Intent and early operation At the time of original passage, Jim Crow Laws were in effect throughout the Southern United States. During World War I, immigration from Europe fell dramatically at precisely the time that Northern industry required additional labor for the war effort. As a result, northern industry and entrepreneurs began to recruit laborers from the South. and in reaction, efforts to thwart recruitment. Black migrants were restricted to specific neighborhoods in northern cities where the buildings were in poor condition and rents were high, forcing them to live in dense conditions. On the floor of the House of Representatives, Congressman Upshaw said: "You will not think that a southern man is more than human if he smiles over the fact of your reaction to that real problem you are confronted with in any community with a superabundance or large aggregation of negro labor." U.S. Congressman John J. Cochran (D-Missouri) reported that he had "received numerous complaints in recent months about southern contractors employing low-paid colored mechanics getting work and bringing the employees from the South". Despite the initial complaints about the use of migrant workers, the Act does not require that contractors show that workers engaged are local residents, but rather requires that laborers be paid the local prevailing wage. Due to the way the data were collected at that time and due to the fact that construction trades were heavily unionized at that time by craft unions, “prevailing wage” effectively meant “union journeyman wage” as discussed above. Unions operate by negotiating for higher wages, and then working to restrict those eligible for the higher wages to union membership. Craft unions did not admit black apprentices, and therefore black laborers did not have the opportunity to advance to journeyman status. According to Bernstein, “as of 1940 blacks composed 19 percent of the 435,000 unskilled "construction laborers" in the United States and 45 percent of the 87,060 in the South”, ==See also==