The United States Department of Labor has begun to interpret the Davis-Bacon Act to require an employer to reimburse employees’ lodging expenses while away from home on prevailing wage jobs. This can create a substantial unanticipated assessment to an employer unaware of this interpretation.
Contractors and subcontractors performing work on federally funded projects are subject to the prevailing wage requirements of the Davis-Bacon and Davis-Bacon Related Acts. When those projects are in a remote location or small rural community, a contractor may find an insufficiently trained local workforce to staff skilled trade positions. As a result, regular employees who do not reside in close proximity to the project may get the assignment. Often, the most experienced, longest-tenured skilled-workers will campaign for the assignment.