I
104TH CONGRESS
1ST SESSION
H. R. 2472
To amend the Act of March 3, 1931 (known as the Davis-Bacon Act),
to revise the standards for coverage under the Act, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
OCTOBER 12, 1995
Mr. WELDON of Pennsylvania (for himself, Mr. BLUTE, Mr. BOEHLERT, Mr.
ENGLISH of Pennsylvania, Mr. FRANKS of New Jersey, Mr. GILMAN, Mr.
HORN, Mr. HOUGHTON, Mr. LATOURETTE, Mr. LAZIO of New York, Mr.
LOBIONDO, Mr. MARTINI, Mr. METCALF, Mr. MCHUGH, Mr. RIGGS, Mr.
SHAYS, Mr. SMITH of New Jersey, Mr. WALSH, Mr. WELLER, Mr.
YOUNG of Alaska, Mr. PETRI, Mr. NEY, Mr. LAHOOD, Mr. GILCHREST,
Mr. QUINN, Mr. LEWIS of California, Mr. TORKILDSEN, and Mr. REG-
ULA) introduced the following bill; which was referred to the Committee
on Economic and Educational Opportunities
A BILL
To amend the Act of March 3, 1931 (known as the Davis-
Bacon Act), to revise the standards for coverage under
the Act, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Davis-Bacon Act Re-
form Amendments of 1995’’.
SEC. 2. AMENDMENTS TO THE DAVIS-BACON ACT.
(a) CONTRACT REQUIREMENTS.—Section 1 of the
Act of March 3, 1931 (commonly referred to as the
‘‘Davis-Bacon Act’’) (40 U.S.C. 276a et seq.) is amended
to read as follows:
‘‘SECTION 1. CONTRACT REQUIREMENTS.
‘‘(a) REQUIRED PROVISIONS.—
‘‘(1) IN
GENERAL.—A contract described in
subsection (b) that requires or involves the employ-
ment of mechanics or laborers shall contain a provi-
sion—
‘‘(A) stating the minimum wages to be
paid various classes of laborers and mechanics
that shall be based upon the wages that will be
determined by the Secretary of Labor to be pre-
vailing for the corresponding classes of laborers
and mechanics employed on projects of a char-
acter similar to the contract work in the locality
where the work is to be performed;
‘‘(B) which stipulates that the contractor
or subcontractor under the contract shall pay
all laborers and mechanics under the contract—
‘‘(i) unconditionally;
‘‘(ii) not less often than once a week;
and
‘‘(iii) without subsequent deduction or
rebate on any account;
‘‘(C) which stipulates that the require-
ments of subparagraph (A) shall apply to—
‘‘(i) laborers and mechanics employed
by the contractor or subcontractor to work
directly upon the site of the work, includ-
ing work at fabrication plants, batch
plants, tool yards, rock pits, or similar fa-
cilities (other than facilities established by
a contractor or subcontractor whose loca-
tion and continuance in operation are de-
termined wholly without regard to any par-
ticular contract work) that are not located
on the project site, but the principal pur-
pose of such work is to provide construc-
tion materials for the project; and
‘‘(ii) laborers and mechanics employed
by a contractor or subcontractor (otherwise
covered by this Act) to transport debris,
materials, supplies, and equipment to or
from the site of the work (as described
herein); and
‘‘(D) which stipulates that, after written
notice to the contractor, there may be withheld
from the contractor under the contract or any
contract between the same contractor and the
United States or the District of Columbia or
under any federally assisted contract subject to
the prevailing wage requirements of this Act so
much of accrued payments as may be consid-
ered necessary by the contracting officer or by
the Secretary of Labor to pay to laborers and
mechanics employed by such contractor or any
subcontractor on the work the difference be-
tween the rates of wages required by such con-
tract to be paid laborers and mechanics on the
work and the rates of wages received by such
laborers and mechanics and not refunded to
such contractor, subcontractor, or the agents of
such contractor or subcontractor.
Funds described in subparagraph (D) shall be
placed in an interest bearing account until the dis-
position of the funds is administratively or judicially
resolved.
‘‘(2) POSTING.—A contractor or subcontractor
under a contract described in subsection (b) shall
post the scale of wages required to be paid under
such contract in a prominent and easily accessible
place at the site of the contract work.
‘‘(b) COVERED CONTRACTS.—
‘‘(1) IN GENERAL.—The requirements of this
section shall apply to—
‘‘(A) any contract in excess of $100,000 to
which the United States or the District of Co-
lumbia is a party for the performance of new
construction, including painting and decorating,
of public buildings or public works of the Unit-
ed States or the District of Columbia within the
geographic limits of the States or the District
of Columbia; and
‘‘(B) any contract in excess of $25,000 to
which the United States or the District of Co-
lumbia is a party for the performance of repair,
rehabilitation, reconstruction, or alteration, in-
cluding painting and decorating, of public build-
ings or public works of the United States or the
District of Columbia within the geographical
limits of the States or the District of Columbia.
‘‘(2) LEASES
OF
REAL
PROPERTY.—If the
United States or the District of Columbia has en-
tered into a contract to lease a building or work, or
portion thereof, and if performance of a contract for
the construction, alteration, repair, rehabilitation,
renovation, or reconstruction of the building or
work, or portion thereof, subject to the lease is re-
quired for fulfillment of the contract to lease the
contract for the construction, alteration, repair, re-
habilitation, renovation, or reconstruction of the fa-
cility shall be subject to subsection (a) if the con-
tract meets the requirements of paragraph (1).
‘‘(3) FEDERALLY ASSISTED.—The requirements
of this Act (including the requirements of paragraph
(1)) shall apply to any project for the construction,
rehabilitation, reconstruction, alteration or repair,
including painting and decorating, of buildings or
works that are financed in whole or in part by loans,
grants, revolving funds, or other assistance from the
United States pursuant to a statute that—
‘‘(A) is enacted after the effective date of
this Act unless exempt or otherwise limited by
Federal law; or
‘‘(B) contains a provision requiring the
payment of prevailing wages as determined by
the Secretary of Labor pursuant to this Act.
‘‘(4) ADJUSTMENTS FOR CHANGES IN DOLLAR
VALUES.—Beginning with the fiscal year 1995 and
annually thereafter, the amounts of the thresholds
set forth in paragraph (1) shall be adjusted by the
Secretary of Labor to the amount that is equal to
the fiscal year 1995 constant dollar value of such
amount. Any amount, as so adjusted, shall be round-
ed to the nearest $1,000. The adjusted threshold
shall be effective upon publication in the Federal
Register to contracts for which bids are solicited or
negotiations concluded after such publication.
‘‘(5) PROHIBITION ON SPLITTING CONTRACTS;
WAGES BASED ON CONTRACT OPTION.—
‘‘(A) SPLITTING CONTRACTS.—No project
that would, if procured under a single contract,
be subject to the requirements of this Act may
be divided into multiple contracts of lesser value
to avoid the application of this Act.
‘‘(B) WAGES
BASED
ON
CONTRACT
OP-
TION.—A contract—
‘‘(i) under which work is performed
over a period of time beyond that period
set forth in the original contract because of
the exercise of an option provision con-
tained in such contract (as opposed to
cases in which a contractor is given an ex-
tension of time in which to complete its
original contractual commitment); and
‘‘(ii) that exceeds the applicable
threshold set forth in paragraph (1),
shall include the wages determined by the Sec-
retary of Labor at the commencement of such
work to be prevailing for the corresponding
classes of laborers and mechanics employed on
projects of a character similar to such work in
the locality where such work is to be performed,
or in the District of Columbia if such work is
to be performed there.
‘‘(6) PREEMPTION.—Neither the requirements
of subsection (a) nor the provisions of any other
Federal law or regulation related to prevailing wages
shall, solely by reason of such prevailing wage provi-
sions preempt the application of requirements for
the payment of wages or fringe benefits or both
adopted by State, local, or tribal governments other-
wise applicable to contracts for the construction, re-
habilitation or reconstruction, repair or alteration,
including painting and decorating, of buildings and
works financed in whole or in part by loans, grants,
revolving funds, or other assistance from the United
States, unless compliance with such requirement
would make it impossible to comply with the require-
ments of subsection (a).
‘‘(c) APPRENTICES, TRAINEES, AND HELPERS.—
‘‘(1) APPRENTICES.—An apprentice who is em-
ployed under a contract subject to subsection (a)
may be paid less than the rate required by such sub-
section if the apprentice is—
‘‘(A) employed pursuant to, and individ-
ually registered in, a bona fide apprenticeship
program registered with the Bureau of Appren-
ticeship and Training of the Department of
Labor or with a State apprenticeship agency
recognized by the Bureau; or
‘‘(B) employed in the apprentice’s first 90
days of probationary employment as an appren-
tice in such an apprenticeship program de-
scribed in subparagraph (A) and is not individ-
ually registered in the program but has been
certified by the Bureau of Apprenticeship and
Training or a State apprenticeship agency
(where appropriate) to be eligible for probation-
ary employment as an apprentice.
‘‘(2) TRAINEES.—A trainee who is employed
under a contract subject to subsection (a) may be
paid less than the rate required by such subsection
if the trainee is employed pursuant to, and individ-
ually registered in, a program that has received
prior approval which is evidenced by formal certifi-
‘‘(B) the amount of—
‘‘(i) the rate of contribution irrev-
ocably made by a contractor or subcontrac-
tor to a trustee or to a third person pursu-
ant to a fund, plan, or program; and
‘‘(ii) the rate of costs to the contrac-
tor or subcontractor which may be reason-
ably anticipated in providing benefits to la-
borers and mechanics pursuant to an en-
forceable commitment to carry out a finan-
cially responsible plan or program that was
communicated in writing to the laborers
and mechanics affected,
for medical or hospital care, pensions on retire-
ment or death, compensation for injuries or ill-
ness resulting from occupational activity, or in-
surance to provide any of the foregoing, for un-
employment benefits, life insurance, disability
and sickness insurance, or accident insurance,
for vacation and holiday pay, for defraying
costs of apprenticeship or other similar pro-
grams, or for other bona fide fringe benefits,
but only where the contractor or subcontractor
is not required by other Federal, State, or local
law to provide any of such benefits,
except that the obligation of a contractor or sub-
contractor to make payment in accordance with the
prevailing wage determinations of the Secretary of
Labor, insofar as this Act and other Acts incorporat-
ing this Act by reference are concerned may be dis-
charged by the making of payments in cash, by the
making of contributions of a type referred to in sub-
paragraph (B)(i), or by the assumption of an en-
forceable commitment to bear the costs of a plan or
program of a type referred to in subparagraph
(B)(ii), or any combination thereof, where the aggre-
gate of any such payments, contributions, and costs
is not less than the rate of pay described in subpara-
graph (A) plus the amount referred to in subpara-
graph (B).
‘‘(2) OVERTIME.—In determining the overtime
pay to which the laborer or mechanic is entitled
under any Federal law, the regular or basic hourly
rate of pay of the laborer or mechanic (or other al-
ternative rate upon which premium rate of overtime
compensation is computed) shall be deemed to be the
rate computed under subparagraph (A) of paragraph
(1), except that where the amount of payments, con-
tributions, or costs incurred with respect to the la-
borer or mechanic exceeds the prevailing wage appli-
cable to the laborer or mechanic under this Act,
such regular or basic hourly rate of pay (or such
other alternative rate) shall be arrived at by deduct-
ing from the amount of payments, contributions, or
costs, actually incurred with respect to the laborer or
mechanic, the amount of contributions or costs of
the types described in subparagraph (B) of para-
graph (1) actually incurred with respect to the la-
borer or mechanic, or the amount determined under
paragraph (B) of paragraph (1) but not actually
paid, whichever amount is the greater.
‘‘(3) WAGE
PAYMENTS
IN
GENERAL.—Except
as provided in paragraph (4), the obligation of a
contractor or subcontractor to make wage payments
in accordance with the prevailing wage determina-
tions of the Secretary, insofar as this Act and other
Acts incorporating this Act by reference are con-
cerned, may be discharged by—
‘‘(A) the making of payments in cash;
‘‘(B) the making of contributions of a type
referred to in paragraph (1)(B)(i);
‘‘(C) the assumption of an enforceable
commitment to bear the costs of a plan or pro-
gram of a type referred to in paragraph
(1)(B)(ii); or
‘‘(D) any combination thereof.
‘‘(4) CONTRIBUTIONS AND COSTS.—Unless oth-
erwise provided in a bona fide collective bargaining
agreement, in discharging the obligation to make
wage payments to laborers and mechanics in accord-
ance with the prevailing wage determinations of the
Secretary of Labor, a contractor or subcontractor
may only include contributions described in para-
graph (1)(B)(i) and costs described in paragraph
(1)(B)(ii) that do not exceed the aggregate of con-
tributions and costs determined by the Secretary of
Labor to be prevailing. Credit for contributions
made to a fringe benefit plan shall be allowed only
to the extent that such contributions are based on
the effective annual rate of contributions for all
hours worked during the calendar year by all the la-
borers and mechanics covered by the plan.’’.
(b) ENFORCEMENT.—Section 3 of the Act of March
3, 1931 (commonly referred to as the ‘‘Davis-Bacon Act’’)
(40 U.S.C. 276a–2) is amended to read as follows:
‘‘SEC. 3. ENFORCEMENT.
‘‘(a) ADMINISTRATIVE PROCEDURES.—
‘‘(1) PAYMENTS.—The Secretary of Labor is
authorized and directed to pay directly to laborers
and mechanics from any accrued payments withheld
under the contract described in section 1(b)(1) or
any contract between the same contractor and the
United States or the District of Columbia or under
any federally assisted contract subject to the prevail-
ing wage requirements of this Act any wages found
to be due laborers and mechanics pursuant to this
Act. Any sum not paid to a laborer or mechanic
under this paragraph by the Secretary of Labor be-
cause of inability to do so within 3 years shall be
deposited into the miscellaneous receipts of the Unit-
ed States Treasury. If the accrued payments with-
held are insufficient to reimburse all the laborers
and mechanics with respect to whom there has been
a failure to pay the wages required by this Act, the
Secretary of Labor or any laborer or mechanic or
any organization authorized to represent such labor-
ers or mechanics may, within 180 days of the con-
clusion of all administrative proceedings, bring an
action against the contractor and the contractor’s
sureties or other responsible parties for the payment
of wages found due by the Secretary of Labor. In
such an action, it shall be no defense that such la-
borers and mechanics accepted or agreed to accept
less than the required rate of wages or voluntarily
made refunds. Any suit instituted under this para-
graph shall be brought in the United States district
court for the district in which the contract was per-
formed, where the contractor or subcontractor is
currently doing business, or where the contractor or
subcontractor maintains its payroll records, irrespec-
tive of the amount in controversy in such suit. In
such suits, the parties must conform to chapter 7
of title 5, United States Code.
‘‘(2) DEBARMENT.—The Secretary of Labor is
authorized and directed to provide the names of per-
sons or firms whom the Secretary has found to have
disregarded their obligations to employees and sub-
contractors or to a contractor, which has made res-
titution for wage under payments by a subcontrac-
tor, to the General Services Administration for inclu-
sion in the Governmentwide List of Parties Excluded
From Federal Procurement and Nonprocurement
Programs. No contract shall be awarded to the per-
sons or firms appearing on such list or to any firm,
corporation, partnership, or association in which
such persons or firms have an interest until—
‘‘(A) 3 years have elapsed from the date
the names of such persons or firms are entered
on the electronic version of such list; or