Ace the Tennessee Business & Law Challenge 2025 – Power Up Your Professional Journey!

The Davis-Bacon Act is the correct choice because it specifically mandates that contractors and subcontractors on federally financed or assisted construction projects pay their laborers and mechanics a wage that is at least equal to the prevailing wage rates in the locality where the work is performed. This Act was established to ensure fair compensation for workers and to prevent underbidding by companies that might otherwise pay lower wages.

The Davis-Bacon Act is crucial in protecting workers and maintaining standards in wage practices on public works projects, making sure that employees receive fair compensation based on the local market. It not only affects large federal projects but also influences state and local public works projects that receive federal funding.

The other options have different scopes and purposes. The Smith-Lever Act relates to agricultural extension services, the Fair Labor Standards Act sets federal minimum wage, overtime pay, and child labor standards, and the Wagner Act supports labor unions by protecting the right to organize and engage in collective bargaining. While all these laws serve important functions, only the Davis-Bacon Act specifically addresses wage requirements on federally-financed projects.