The Davis–Bacon Act established prevailing-wage rules for workers on federally financed public buildings in 1931.
The law emerged during the Great Depression, when intense competition for public construction contracts could encourage contractors to reduce labor costs. It required contractors on covered federal construction projects to pay laborers and mechanics at least the locally prevailing wage and fringe benefits for comparable work.
The statute is named for Representative John J. Davis and Senator James J. Bacon. The Department of Labor administers its wage determinations and enforcement. Davis–Bacon is not the same as a nationwide minimum wage: a prevailing rate depends on the project’s location, classification, and applicable determination. Later amendments expanded and clarified coverage, while many state governments adopted their own “little Davis–Bacon” laws.