New Davis Bacon Rule Effective October 23
Sunday, October 22, 2023

Section: Advocacy News

Department of Labor building

AGC of America provides resources for your construction firms to be prepared for the new Davis Bacon final rule requirements as it also readies a rifle shot legal challenge in court.

The U.S. Department of Labor’s massive final rule “Updating the Davis-Bacon and Related Acts Regulations” takes effect on all new contracts awarded on and after October 23, with limited exceptions.

Contractors currently bidding contracts covered under Davis Bacon should consider changes to existing requirements as well as new ones.

To help AGC members understand the rulemaking, please find the following AGC resources below:

  • A one-page document providing the topline takeaways of the final rule here;
  • A seven-page document summarizing in more detail key provisions of the final rule here;
  • A October 10 webinar providing a practical understanding of the rule (see webinar recording and powerpoint presentation)

In addition, AGC held a private, member-only virtual update on the changes with the DOL on September 6. The Department later held webinars on the changes as well (see webinar recording and powerpoint presentation). For more DOL resources, click here.

AGC objected to many provisions in the proposed rule, especially those that would expand “site of work” provisions to include more off-the-jobsite workers under Davis Bacon requirements. Unfortunately, DOL did not resolve AGC’s objections in the final rule and, in fact, added more uncertainty when it comes to truck driver coverage and contractors using their own material supply operations on covered projects, among other things.

AGC is preparing a narrowly tailored lawsuit to challenge such provisions in the final rule because DOL exceeded the authority Congress granted it under the Davis Bacon Act and acted in an arbitrary and capricious manner. The filing of that lawsuit is imminent. Nevertheless, AGC members should be prepared to comply with the final rule.

AGC will provide more information as soon as it becomes available.