What is the Davis Bacon Act. Enacted in 1931, the law states that contractors for federal projects must pay their workers no less than the wage rates prevailing in the local area for each craft, as determined by the U. S. Department of Labor. . Creation of the Davis Bacon Act. Depression: In 1931 this country was in the midst of the devastating depression. Workers before depression were paid $4 a day. During depression paid $2 a day, when work was availableUnions: Just starting to become power1141
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