💰Labor Department rescinds Davis-Bacon prevailing wage for federal contractors
Civil Rights
Public Policy
President Trump eliminated the $17.75 minimum wage for federal contract workers, potentially cutting pay for hundreds of thousands of private sector employees. By tearing up a Biden-era executive order that set a minimum wage for workers on federal contracts, the Trump administration has made some private sector workers vulnerable to pay cuts of up to 25 percent.
Review Topic
Test your knowledge with interactive questions
10 questions
5:00
15 available
Key Takeaways
Influential Figures
No influential figures found.
Some topics may not have prominent individuals directly associated.
Why This Matters
💰 Davis-Bacon Act suspension eliminates prevailing wage protections for federal construction projects
Workers building highways, military bases, and government buildings lose wage premiums when Trump suspends the 1931 law requiring federal contractors pay local prevailing wages. Construction workers see immediate pay cuts of $10-20 per hour while contractors pocket the savings, demonstrating how regulatory elimination transfers worker compensation directly to corporate profits.
💸 Federal contractor wage theft increases when Labor Department stops enforcement
Companies winning government contracts routinely underpay workers when federal investigators disappear and violations carry no consequences. Janitorial, security, and construction workers lose billions in stolen wages while their employers collect full federal payments, socializing costs through taxpayer funding while privatizing savings through worker exploitation.
⚠️ Workplace safety protections vanish when OSHA inspection funding disappears entirely
Federal workplace safety inspectors lose jobs while industrial accidents increase at federal contractor worksites. Construction deaths, chemical exposures, and equipment injuries multiply when employers know federal safety inspections will not occur, trading worker lives for construction cost savings on taxpayer-funded projects.
🏗️ Union bargaining power collapses when federal employment standards disappear permanently
Organized labor loses leverage to negotiate higher wages when federal projects no longer require prevailing wage compliance. Non-union contractors gain competitive advantages by cutting worker compensation, accelerating the decline of construction unions and skilled trades that provide middle-class employment without college education requirements.
What Others Are Asking
No Questions Yet
Be the first to ask
Detailed Content
1
What was the minimum wage for federal contract workers before Trump eliminated it?
Multiple Choice
Government
2
When did Trump issue the executive order cutting federal contract wages?
Multiple Choice
Labor Rights
3
What's the minimum wage for a food service worker on federal contracts in Mississippi?
Multiple Choice
Labor Rights
4
What law covers wage standards for federal construction projects?
Multiple Choice
Executive Power
5
When did Biden first establish higher minimum wages for federal contractors?
Multiple Choice
Government
6
How much potential wage loss could some federal contract workers face?
Multiple Choice
Government
7
Which worker would see the smallest wage cut under Trump's changes?
Multiple Choice
Labor Rights
8
How long has the federal government used contracting to set wage standards?
Multiple Choice
Labor Rights
9
What executive power did Trump use to cut federal contractor wages?
Multiple Choice
Executive Power
10
Who ultimately pays the wages of federal contract workers?
Multiple Choice
Government
11
The wage cuts only affected new federal contracts, not existing ones.
True/False
Labor Rights
12
A federal judge blocked Trump from ending union bargaining for federal workers.
True/False
Government
13
Federal contract workers lost the right to overtime pay under Trump's changes.
True/False
Labor Rights
14
The federal government uses private contractors to provide military uniforms.
True/False
Government
15
Market wages under existing laws are updated frequently to keep up with inflation.
True/False
Labor Rights