When are prevailing wages triggered? Are state prevailing wages required for projects funded from federal funds? Does a public agency have a monitoring obligation to ensure that prevailing wages are paid? These are the types of questions clients grapple with when considering their activities and the implications of state prevailing wage and federal Davis-Bacon laws.
Goldfarb & Lipman has extensive experience and a long history with these issues. We assist our clients in understanding how various forms of governmental financing may or may not require compliance with state prevailing wage and federal Davis Bacon requirements for a particular project. We counsel our public and private sector clients on the applicability and administration of the two sets of laws. Issues on which we advise clients include the effect of prevailing wages on tax credit and bond financing for affordable housing developments; public agency sale or lease of land at less than fair market value to private for-profit and nonprofit developers; government development fee credits and waivers; and the provision of public infrastructure that benefits private development.
With regard to federal Davis-Bacon law, we have advised numerous housing authorities and other public agencies and private developer clients about the applicability and effect of federal prevailing wage law, and its interaction with state prevailing wage law. In addition, we have worked closely with HUD’s labor relations office to resolve compliance issues raised by the failure of a contractor or subcontractor to pay Davis-Bacon prevailing wages when required.