The Davis-Bacon Act, passed in 1931 during the Great Depression, sets a minimum pay scale for workers on federal contracts by requiring contractors to pay the average or prevailing wage in the region. It applies to federally funded construction projects such as highways and bridges.
Davis-Bacon does not require payment of union wages, but the prevailing wage - the wage typical for a specific job function in the local area where the work is being completed. When it is suspended, federal contractors can pay below the prevailing wage.
President Bush lifted the prevailing-wage requirements for federal projects in Alabama, Florida, Louisiana, and Mississippi. There is no state minimum wage in Alabama, Louisiana or Mississippi. Therefore they fall under the federal minimum wage which is still at the 1997 figure of $5.15 per hour. The Florida state minimum wage is $6.15 per hour.
In August, the US Census Bureau reported that the number of Americans living in poverty rose to 39.5 million with the poverty rate among children the highest it has been in ten years. In the states affected by the President’s rescission of Davis-Bacon, the percentage of people in poverty is:
- Alabama – 16%
- Florida – 12.2%
- Louisiana – 16.8%
- Mississippi – 17.3%
In these states, the percentage of people without health insurance ranges from 13.8% to 19%
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