Davis-Bacon Job Targeting

Gao ID: HEHS-96-151R June 3, 1996

Pursuant to a congressional request, GAO provided information on the Department of Labor's interpretation of the Davis-Bacon Act, focusing on the: (1) use of job targeting programs (JTP) on federal construction projects; and (2) actions Labor has taken to enforce its position concerning JTP. GAO noted that: (1) Labor believes that JTP payroll deductions from federal construction project workers violate the Davis-Bacon Act; (2) the Davis-Bacon Act is at issue when JTP deductions reduce workers' wages below prevailing wage rates; (3) Labor has no authority to govern deductions from wages paid on private construction projects; (4) Labor will not enforce Davis-Bacon Act regulations in two specific cases because it will be too difficult to do so; (5) Labor was a defendant in one court case that stemmed from an appeal of its 1989 ruling on JTP deductions; (6) Labor has received and investigated five complaints of JTP violations, two of which are still pending; and (7) Labor responds to inquiries concerning JTP-related issues on a case-by-case basis, and informs its regional staff of the pertinent decisions and rulings.

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