ABC: DOL’s Retreat on Davis-Bacon Expansion Welcome, But Full Repeal Is Needed

WASHINGTON, June 25-Associated Builders and Contractors issued the following statement from its vice president of government affairs, Kristen Swearingen, in response to the U.S. Department of Labor's decision to drop its defense of a lawsuit challenging certain provisions of the costly and burdensome 2023 final rule revising prevailing wage regulations under the Davis-Bacon Act:

"ABC appreciates the DOL's decision to drop its defense of part of these regulations," said Swearingen. "In a victory for the construction industry, taxpayers and the rule of law, yesterday's order recognizes the illegality of former President Joe Biden's efforts to expand Davis-Bacon requirements beyond the scope Congress set out.

"However, there is much more to be done. This decision leaves in place the vast majority of the costly and burdensome Davis-Bacon regulations promulgated under the Biden administration. The misguided and unnecessary 2023 final rule continues to unlawfully distort the accuracy of prevailing wage surveys, discourage small business participation in federal contracting and unnecessarily increase costs for taxpayers.

"ABC urges the DOL to swiftly rescind the 2023 final rule, which would be a major step towards cutting red tape and improving the federal government's delivery of critical construction projects, and to instead pursue commonsense reforms to prevailing wage regulations. ABC continues to pursue litigation seeking to overturn this unlawful and onerous rule entirely."

This decision blocks the expansion of prevailing wage regulations to cover manufacturing facilities miles away from projects and delivery truck drivers spending any amount of time on a jobsite, and the ability of the government to retroactively impose the measure on already-executed contracts. The decision has no impact on other aspects of the 2023 final rule, which remain in effect.

The decision is the result of a lawsuit filed by the Associated General Contractors of America in November 2023.

The 1931 Davis-Bacon Act and related regulations require contractors and subcontractors that perform work on federal and federally funded construction projects to pay a government-determined prevailing wage and benefit rate.