On August 8, 2023, the United States Department of Labor (DOL) issued a final rule interpreting the federal Davis-Bacon Act, the federal law governing payment of wages to construction workers working on federally funded public works projects. Among other things, the final rule alters how the DOL sets the prevailing wage rate for workers that work in geographic regions where the majority of workers do not receive a single wage rate. The DOL notes that this change will affect an estimated $217 billion in federal and federally-assisted construction projects and approximately 1.2 million construction workers across the country. The new rule goes into effect 60 days after it is formally published in the Federal Register.
