A federal judge in Texas has issued a temporary injunction halting a Biden administration rule that aimed to increase prevailing wage requirements for contractors on federally funded construction projects. Northern District of Texas Judge Sam Cummings granted the injunction in response to a lawsuit filed by the Associated General Contractors of America (AGC) against the Department of Labor. The rule, which went into effect in October 2023, required contractors to adhere more frequently to prevailing wage standards unless explicitly exempted by federal agencies in their contracts.
Judge Cummings’ ruling prevents the Department of Labor from enforcing the expanded Davis-Bacon requirements nationwide until the lawsuit is resolved. The AGC argued that the administration exceeded its authority in expanding the scope of Davis-Bacon Act requirements beyond congressional intent. AGC CEO Jeffrey Shoaf welcomed the injunction, asserting that it restores the original intent of the Davis-Bacon Act.
Labor groups, including North America’s Building Trades Unions, supported the rule, contending that it safeguards local labor standards against undercutting by competitive bidding practices. The rule’s update aimed to redefine prevailing wage calculations to align with wages paid to at least 30% rather than 50% of workers in a given trade within the project’s local area, aiming for a fairer wage determination process.