Federal Judge Blocks Part of Davis-Bacon Update Rule Pending Contractor Lawsuit

An Associated General Contractors suit targets the expansion of prevailing wage requirements on federally funded projects in some cases.

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A federal judge in Texas this week temporarily blocked some provisions of a rule the U.S. Department of Labor finalized last year expanding the Davis-Bacon Act, and signaled that the Associated General Contractors of America is likely to succeed in its lawsuit challenging parts of the rule.

AGC, along with its Texas chapter plus the Lubbock Chamber of Commerce and Amarillo,Texas-based contractor J. Lee Milligan Inc., filed the suit last November targeting parts of the rule that expand Davis-Bacon Act prevailing wage requirements on federally funded projects to truck drivers and material supplier employees in some cases. The rule took effect Oct. 23 with support from unions and criticism from some contractor groups. 

U.S. District Court Judge Sam Cummings in Lubbock issued the injunction June 24, blocking Labor Department officials from enforcing three provisions of the rule challenged by the plaintiffs pending completion of the case. 

Jeffrey Shoaf, CEO of AGC, said in a statement that the association’s concern is that the department “is expanding the scope of the rule well beyond what Congress ever intended.” 

“This injunction restores the original intention of the Davis-Bacon Act,” Shoaf said.

To read the rest of the story from Engineering News-Record click here.

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