Louisiana Contractors License Practice Exam

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Prepare for the Louisiana Contractors License Exam with this comprehensive quiz featuring multiple-choice questions and detailed explanations. Get ready to demonstrate your knowledge and secure your license!

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What does the Davis-Bacon Act establish?

Minimum income requirements for employees
Prevailing wage and benefit requirements for contractors
Employee health and safety standards
Overtime pay requirements for all industries

The correct answer is: Prevailing wage and benefit requirements for contractors

The Davis-Bacon Act establishes prevailing wage and benefit requirements for contractors working on federally funded or federally assisted construction projects. This means that contractors are required to pay their laborers and mechanics at least the local prevailing wage for similar work in the area where the project is located. This act aims to ensure that wages are fair and prevent underbidding by contractors who might otherwise pay their workers less than the competitive rate, thereby helping to maintain standards within the construction industry. It emphasizes the importance of adequate payment for construction work connected to public funding and supports local economies by maintaining wage standards within communities.