Bill Kills Updated Davis-Bacon Wage Rule: What It Means for Federal Construction Paychecks

This legislation is short, but its impact is huge—especially if you work in construction or rely on federal projects for your livelihood. The bill targets a specific rule published by the Department of Labor (DOL) on August 24, 2023, which updated regulations for the Davis-Bacon and Related Acts. This bill’s entire purpose is to wipe that new rule off the books, declaring it will have “no force or effect.” Essentially, Congress is stepping in to veto a major update to how prevailing wages are calculated on federally funded public works projects, like roads, bridges, and government buildings.

The Prevailing Wage Showdown

To understand why this matters, you need to know what the Davis-Bacon Act does. It requires contractors on federal construction projects to pay their workers the local “prevailing wage” and benefits, ensuring that government spending doesn't undercut local pay standards. The DOL’s rule, the one this bill cancels, was designed to modernize how the prevailing wage is determined, aiming to make sure the rates better reflected actual market wages in a given area. For instance, the updated rule made it easier for the DOL to adopt state and local wage surveys and sped up the process for updating rates, which generally translates to higher pay floors for workers on those jobs. By nullifying this rule (Section 1), this legislation reverts the process back to the older, often slower, and potentially less accurate method of wage determination.

Who Feels the Change?

If you’re a construction worker, particularly one who relies on federal contracts, this bill directly affects your paycheck potential. The DOL’s updated rule was widely supported by labor groups because it was expected to increase the prevailing wage floor across the country, potentially putting more money in the pockets of tradespeople like electricians, plumbers, and ironworkers. By killing the rule, this bill removes that expected wage increase and keeps the older, less flexible wage calculation methods in place. Think of a contractor bidding on a new highway project: under the new, now-voided rule, their labor costs would likely have been higher because they had to meet a more current prevailing wage. Now, those labor costs will be lower, which is good news for the contractors but potentially bad news for the workers who were expecting a raise.

Legislative Override: Setting a Precedent

This move is a classic example of Congress using its power to override the executive branch’s regulatory authority. When a federal agency like the DOL spends years developing a technical rule based on its expertise, and Congress steps in to nullify it, it’s a big deal. For busy people, this highlights a crucial dynamic: even if an agency tries to update regulations to reflect modern economic realities—like ensuring federal spending supports current market wages—a legislative action can instantly reverse that effort. If this bill passes, it locks in the regulatory status quo that existed before the August 2023 update, maintaining the older wage determination rules for future federal construction projects.