Adjusting Davis-Bacon for Inflation Act This bill increases from $2,000 to $50,000 the threshold above which the prevailing wage requirements apply to federal or District of Columbia government contracts involving the construction, alteration, or repair of public buildings or public works. These requirements generally ensure that workers are paid the prevailing local wage where such projects takes place.
If enacted, this bill would reduce the number of construction projects that are subject to federal prevailing wage requirements. Proponents of the bill argue that this change would lessen the regulatory burden on smaller projects and contractors, thereby encouraging more firms to engage in government contracts. This could potentially lead to an increase in participation from small and medium-sized enterprises in public projects, fostering a more competitive bidding landscape.
House Bill 144, known as the Adjusting Davis-Bacon for Inflation Act, seeks to amend the prevailing wage requirements set forth by the Davis-Bacon Act. The primary change proposed in this bill is to significantly raise the threshold for contract amounts subject to prevailing wage laws from $2,000 to $50,000 for federal or District of Columbia government contracts that involve construction, alteration, or repair of public buildings or public works. This adjustment reflects an attempt to align the criteria with contemporary economic conditions and inflation trends.
Critics of HB144 express concerns that raising the dollar threshold could undermine wage protections for workers on public contracts that fall below the new threshold. They argue that lowering the coverage of prevailing wage requirements may lead to reduced wages for workers and compromised quality in public constructions, as contractors may seek to cut costs by paying lower wages, thus negatively impacting workers' rights and earnings in the construction industry.