The Davis-Bacon Act of 1931 is a United States federal law that establishes the requirement for paying the prevailing wages on public works projects for laborers and mechanics. Federally funded projects fall under the Davis-Bacon Act.
The Prevailing Wage Act governs the local wages that a contractor or subcontractor is required to pay to all laborers, workers, and mechanics who perform work on public works projects (such as schools, park districts, government/municipal buildings). The Act also sets forth the record keeping requirements for a contractor or subcontractor. It sets forth obligations of municipalities and other public bodies to establish the prevailing wage as well as, to notify in writing all contractors and subcontractors regarding the Prevailing Wage Act when bidding and awarding contracts, as well as on work orders.