Labor laws have developed over centuries in this country to ensure all workers have a safe workplace and that they are paid prevailing wages and benefits. As employers, the federal, state and local governments lead by example, making sure that their employees are compensated fairly under the controlling law. To assure employees of private contractors who contract with the government to provide goods and services receive the same treatment, Congress passed legislation requiring government contractors to pay their employees prevailing wages and benefits.
The Davis-Bacon Act requires all government contractors and subcontractors performing work on federal or District of Columbia construction contracts, or federally assisted contracts in excess of $2,000, to pay their employees no less than the prevailing wage rates and fringe benefits for equivalent classes of employees employed on similar projects in the area. The prevailing wage rates and fringe benefits are determined by the Secretary of Labor for inclusion in covered contracts. Fringe benefits include health insurance or care, pensions, unemployment compensation, life insurance, disability or sick pay, accident insurance, vacation and holiday pay, and the costs of apprenticeships or like programs. In addition to the Davis-Bacon Act, Congress added Davis-Bacon like prevailing wage provisions to over 50 laws under which federal agencies support construction projects through grants, loans, guarantees, and insurance (e.g., the Federal-Aid Highway Acts, the Housing and Community Development Act of 1974, and the Federal Water Pollution Control Act). More recently, the American Recovery and Reinvestment Act of 2009 ( ARRA ), was enacted that appropriated funding for construction, modification, and repair of federal buildings and for other infrastructure projects, including roads, bridges, public transit, water systems, and housing. Similar to existing Davis-Bacon Act requirements, federal agencies directly contracting for construction work using ARRA funds are required to ensure that covered contracts contain Davis-Bacon Act prevailing wage and fringe benefit standards and wage determinations.
Compliance with the Davis-Bacon Act and these other prevailing wage laws is frequently included in the terms of the government’s contracts for goods and services. Contractors must periodically submit certifications to the government for themselves – and for all their subcontractors – attesting to their compliance with the Davis-Bacon Act or its companion acts. Government contractors and subcontractors who fail to pay prevailing wages and fringe benefits and falsely certify compliance with the Davis-Bacon Act or its companion acts may be in violation of the False Claims Act. If the government contractor violates the FCA, the measure of damages is not just the difference between wages actually paid and prevailing wage. Instead, damages may be calculated by the total amount of prevailing wages that should have been paid.
If you know of a federal government contractor that is not complying with the Davis-Bacon Act by not paying prevailing wages and fringe benefits, and you would like to learn more about or would like to bring a qui tam whistleblower lawsuit against the wrongdoer, the whistleblower attorneys at Keller Grover LLP may be able to help you. The whistleblower lawyers at Keller Grover LLP understand qui tam litigation, including the whistleblower protection provisions, and strive to achieve the best possible results for their clients.