💰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.

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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.

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