Administration of Minimum Wage Rate Determinations Subject to Provisions of the Davis-Bacon Act

The Davis-Bacon Act requires that workers employed on federal or federally assisted construction projects costing in excess of $2,000 be paid minimum wages and benefits based on prevailing rates, as determined by the Secretary of Labor. Federal contracting agencies are responsible for enforcing minimum wage provisions pursuant to regulations issued by the Department of Labor.

The Milwaukee Area Office of Housing and Urban Development (HUD) sponsored training workshops and delegated enforcement responsibilities to grantees. HUD instructions require actions to ensure contractor compliance. The area office retained responsibility for monitoring grantees' enforcement practices, but HUD representatives visited the Beloit project only once and did not visit the Sheboygan site. On the Sheboygan project, several instances of noncompliance were identified, including failure to interview workers, failure to follow conformance procedures, failure to obtain registration papers, and omission of applicable area wage determination from contract specifications. One wage payment violation and some inaccuracies were disclosed. On the Beloit project, it was found that the grantee had not interviewed employees, nor established procedures to ensure that contractors submitted payrolls, nor resolved underpayments of wages. A limited payroll examination revealed two examples of violations. In general, it was believed that the grantees and HUD were ineffective in ensuring contractor compliance with labor standards.