President Suspends Wage Laws for Gulf Coast Workers

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Don Baylor /(512) 320-0222 x 108

October 7, 2005

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Last month, the President suspended the Davis-Bacon Act for federally contracted cleanup and reconstruction projects in counties and parishes directly affected by Hurricane Katrina. The Davis-Bacon Act—a federal law since 1931—requires federal construction contractors to pay the prevailing hourly wage for each occupation in a geographic area. The prevailing hourly wage for construction occupations averages $9.50 per hour in the affected areas of Alabama, Mississippi, and Louisiana. However, the President’s repeal of Davis-Bacon enables federal contractors to hire minimum-wage workers to rebuild the Gulf Coast.