Louisiana Contractors License Practice Exam

Which act requires that contractors on federally funded projects pay prevailing wages?

1. Family and Medical Leave Act

2. Davis-Bacon Act

3. Contract Work Hours and Safety Standards Act

4. Wage Garnishment Law

The correct answer is: Davis-Bacon Act

The correct answer is the Davis-Bacon Act, which mandates that contractors and subcontractors on federally funded or assisted construction projects pay their laborers and mechanics no less than the prevailing wage rates and benefits typically paid for similar work in the local area. This is significant in promoting fair labor standards and ensuring that workers are compensated fairly based on regional wage norms. The underlying principle of the Davis-Bacon Act is to protect local wage standards in communities where federal projects are being undertaken. By ensuring that wages are in line with local expectations, the act helps prevent employers from undercutting local wage rates through competition for federal contracts. While the other options listed address various labor rights and standards, they do not specifically relate to the requirement of paying prevailing wages on federally funded projects. The Family and Medical Leave Act relates to job protection during family or medical leave, the Contract Work Hours and Safety Standards Act regulates hours of work and safety standards without directly addressing wage rates, and wage garnishment laws pertain to the process of deducting a portion of an employee's earnings to pay debts, which is not directly related to the payment of wages on federally funded projects.