Questionable Wage Determinations Issued by the Department of Labor for a Bridge Project in Alabama

The Davis-Bacon Act requires that laborers and mechanics employed on federal construction projects costing more than $2,000 be paid wages and benefits based on prevailing rates. Wage determinations are set forth by the Department of Labor's Wage and Hour Division. Contractors complained that wage determinations applicable to the Mobile Bay Bridge project in Alabama would have the effect of using heavy construction wage rates for bridge construction. The matter was appealed before the Wage Appeals Board which ruled that the wage determinations did not reflect prevailing wages for similar construction in the area. The Board denied the Wage and Hour Division's motion to reconsider its decision. The new wage survey conducted by the division resulted in lower wage rates for bridge construction work. The state will realize savings in construction costs by use of the lower wage rates.