Davis-Bacon Suspension and Its Legislative Aftermath

Publication Date: November 2005

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Business

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Abstract:

The Davis-Bacon Act of 1931 (as amended) requires that not less than the locally prevailing wage be paid to workers engaged in federal contract construction. A higher rate may be required, depending upon market conditions, in order to secure a qualified workforce. Davis-Bacon, however, represents a wage floor.

Under Davis-Bacon, the President is allowed to suspend the Act during a time of national emergency -- though a national emergency is not defined in the Act. On four occasions, Presidents have suspended the statute -- most recently in the wake of Hurricane Katrina.

During the last week of August 2005, Hurricane Katrina gathered strength in the Atlantic and moved against the Gulf states. On September 8, 2005, amid the chaos left in Katrina's wake, President George W. Bush suspended Davis-Bacon -- focusing upon the massive effort that would be required for reconstruction.

In the wake of Hurricane Katrina, the legislative response has been diverse. H.R. 3684 (Flake) proposed to render a suspension mandatory during any major disaster proclaimed by the President under the Stafford Act. A companion bill was introduced in the Senate: S. 1817 (DeMint). Other measures, introduced after the President had acted, would have reversed his proclamation and would have restored Davis-Bacon to full force: H.R. 3763 (George Miller), H.R. 3834 (Pallone), and S. 1749 (Kennedy). Yet another bill, S. 1763 (Boxer), would have given employment preference to persons impacted by Hurricane Katrina -- and would have, in effect, restored Davis-Bacon.

Proceeding in a different manner were H.Res. 467 (Miller) and H.Res. 488 (LaTourette). Though somewhat differently worded, the President was requested in each to provide to the House of Representatives information in his possession that relates to wages and benefits to be paid to workers in the several hurricane-impacted areas. In late October, Labor Secretary Chao announced that Davis-Bacon would be reinstated by November 8, 2005.

In other legislation, H.R. 3907 (Blackburn) proposed a redefinition of the concept of helper for Davis-Bacon purposes. Although of general application, the new definition could have a significant impact in the storm ravished regions.

This report analyzes the legislative aftermath of the decision to suspend the Davis-Bacon Act. It will be updated as conditions warrant.