The Davis-Bacon Act45 requires that prevailing wages be paid for work on construction projects that are financed by a loan or grant from the Federal government that uses FTA funds. In states that have no prevailing wage law, or where the state wages are lower than Federal wages, the application of the Federal law could have significant cost implications for the project. In addition, whenever the Davis-Bacon Act applies, it is accompanied by significant record keeping and auditing requirements.
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45 40 U.S.C. Section 276a et seq.