Notice of Injunction on Davis-Bacon Act Provisions: What Contractors Need to Know

Published Date: July 2, 2024

Status: Active

Expires: Indefinite

On June 24, 2024, the U.S. District Court for the Northern District of Texas issued a nationwide preliminary injunction that directly impacts certain provisions within the Department of Labor’s (DOL) final rule for the Davis-Bacon and Related Acts (DBRA). This rule, initially effective as of October 23, 2023, aimed to update wage and labor standards for federal contractors and subcontractors. However, as a result of this injunction, three key provisions have been put on hold and are no longer enforceable.

The affected provisions include:

1. Distinction Between Material Suppliers and Contractors/Subcontractors

   • Codified under 29 CFR 5.2, this provision formally distinguishes between material suppliers and contractors/subcontractors in terms of wage requirements and obligations. With the injunction in place, this differentiation cannot be enforced at this time.

2. Prevailing Wage Requirement for Delivery Truck Drivers

   • Also within 29 CFR 5.2, this provision mandated that contractors and subcontractors pay prevailing wages to their delivery truck drivers for any onsite work exceeding "de minimis" time. The injunction pauses this requirement, meaning contractors are currently not obligated to pay prevailing wages specifically for this scenario.

3. Automatic Application of DBRA Provisions to Contracts

   • Under 29 CFR 5.5(e), this provision directed that DBRA standards would automatically apply to contracts, even if a contracting agency mistakenly omitted DBRA requirements. The injunction halts the automatic application, making it crucial for contractors to verify contract details carefully.

     
     

What This Means for Contractors: With these provisions on hold indefinitely, contractors should stay informed on the current requirements and avoid implementing practices aligned with the paused provisions until further notice. Importantly, the remaining components of the DOL’s final rule are still in effect, so compliance with other DBRA standards continues to be mandatory.

Stay Updated: As this legal development unfolds, Bridge Point Compliance remains committed to keeping contractors informed. For questions about compliance or to understand how these changes may impact your contracts, feel free to reach out to our team. Staying proactive about changes to federal compliance requirements can help contractors maintain successful and compliant projects.

Contact Us

For further information on compliance with the Davis-Bacon Act, or if you need assistance navigating these updates, don’t hesitate to reach out to us at info@bridgepointcompliance.com.