What does the Davis-Bacon Act require concerning federal construction contracts?

The correct response to the question regarding the Davis-Bacon Act is that it requires 'prevailing wages' for federal construction contracts. This act mandates that contractors and subcontractors on federal public works projects pay their laborers and mechanics not less than the prevailing wage rates in the locality where the work is performed. The intention behind the Davis-Bacon Act is to ensure that workers on federally funded construction projects receive fair compensation that reflects the wages paid for similar work in the area, thus helping to maintain local wage standards and protect local labor markets.

This prevailing wage requirement helps prevent underbidding by contractors who might pay their workers less than the average wage, leading to a potential decline in wage standards in the community. The act applies specifically to construction projects and aims to promote fair labor practices.

The other options presented do not correctly encapsulate the primary requirement of the Davis-Bacon Act. While providing benefits to workers and overtime pay are important aspects of labor law, they are not the central focus of this particular act. Additionally, while setting a minimum wage can be a component of labor laws, the Davis-Bacon Act specifically emphasizes the payment of prevailing wages rather than a standardized minimum wage across all federal contracts.