U.S. Labor Department leaders are planning to ramp up enforcement of wage standards on federally funded construction and service projects, aiming to reverse a recent trend that has been compounded by attrition of seasoned investigators, according to four sources briefed on the initiative.
The changes the DOL’s Wage and Hour Division is formulating—which could rank among its biggest initial policy moves under the new administration—would support the infrastructure and jobs package President Joe Biden is planning to roll out.
As the administration readies those big-ticket legislative proposals, which would increase government investment in projects developed by private companies, the department has begun preparations to expand its investigative capacity under two statutes that require government contractors to pay workers prevailing wages and benefits, as determined by the DOL.
The building trades and service unions have long called for the department to crack down on what they have described as government contractors’ persistent non-compliance with the two laws: the Davis-Bacon Act, which covers public construction projects, and the McNamara-O’Hara Service Contract Act, which applies to government spending on services, such as janitorial work and food preparation.
Continue reading at: Bloomberg Law
