On August 8, the Biden administration issued a final ruling to raise wages for the more than 1 million construction workers on federally funded and assisted projects.
Vice President Kamala Harris said the updates to the Davis-Bacon and Related Acts will put “thousands of extra dollars per year in workers’ pockets.”
But some industry groups say the rule ignored stakeholder feedback and could have detrimental effects.
In a statement, Associated Builders and Contractors (ABC) said the revisions come at the expense of taxpayer investment in infrastructure and “in the midst of challenging economic conditions facing the construction industry, including high materials costs and a skilled-labor shortage of more than half a million in 2023.”
Associated General Contractors (AGC) representatives echoed that sentiment, saying the announcement "makes some improvements but critically misses an opportunity to improve the wage determination process and further burdens over-regulated construction contractors."
The rule, which was proposed in March 2022, is the first update to the prevailing wage regulations in more than 40 years.
It will require payment of locally prevailing wages and fringe benefits on the $200 billion of federally funded or assisted construction projects contained in President Biden’s Bipartisan Infrastructure Law, the CHIPS and Science Act, and the Inflation Reduction Act.
