WASHINGTON - Congressman Steve King (R-IA) and Congressman Connie Mack (R-FL) have introduced the Davis-Bacon Repeal Act (H.R. 2900), which would repeal the wage rate requirements mandated by the Davis-Bacon Act. The legislation was referred to the Committee on Education and Labor.

The Davis-Bacon Act, a Depression-era wage subsidy law, requires that each public works contract over $2,000 contain a clause that mandates "prevailing" wages be paid. Contractors and subcontractors are forced to pay a "prevailing wage" set by the federal government. These wages, however, rarely resemble local market conditions. Instead, they tend to reflect the inflated pay scale of union workers in the area. Davis-Bacon disproportionately impacts small companies and rural businesses.

"It is wrong for the federal government to impose a union wage scale on small communities and small contractors. A recent government study showed that 'prevailing wages,' as determined by the federal government, were in error 100% of the time," Congressman King said.

"Davis-Bacon prevailing wage requirements are wrong for our country," Congressman Mack said. "This antiquated provision hinders our economic recovery by making fewer projects and fewer jobs available to fewer people. Instead of pandering to Big Labor, Congress should be fostering a competitive environment for businesses to be able to hire more people for more jobs. And we can start by passing our legislation to repeal Davis-Bacon once and for all."