PHR Human Resources Exam Prep

Answer - D - The Davis-Bacon act requires that companies with federal construction contracts must pay their laborers and mechanics the standard wage of employees in the geographic area in which the work is being performed.

Key Takeaway: The Davis-Bacon Act, also known as Prevailing Wage law, requires that bidding contractors and sub-contractors must pay minimum wages to workers who provide construction work on federal or public work projects that are in excess of $2,000. The Act was amended in 1964 to include fringe benefits in the definition of “minimum wages.”