Court issues nationwide injunction against parts of DBA regulations

A federal district court issued a nationwide injunction preventing the U.S. Department of Labor (DOL) from enforcing three provisions of the recently issued Davis-Bacon Act (DBA) regulations governing the prevailing wages and benefits for federally funded construction contracts. Further litigation and an appeal by the DOL is expected.

The DBA applies to contractors and subcontractors on federally funded or federally assisted contracts in excess of $2,000 performing construction, alteration, or repair of public buildings or public works. Contractors and subcontractors are required to pay prevailing wages and fringe benefits to workers based on location and the type of work performed.

In August 2023, the DOL published a final rule updating the DBA regulations, which went into effect in October. In November, the Associated General Contractors of America (AGC) filed a lawsuit against the DOL, requesting preliminary and permanent injunctions.

The federal court in the Northern District of Texas granted a nationwide preliminary injunction on June 24 enjoining the DOL from implementing or enforcing the DBA regulatory provisions relating to (1) contracts that don’t include DBA provisions, (2) off-site material suppliers (including fabricators), and (3) truck drivers for suppliers.