The Erdman Act put into place a requirement that companies using federal dollars for construction projects use the "prevailing wage rate" of the area as the minimum-wage rate on their construction project.

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The Erdman Act primarily dealt with arbitration of disputes between railroads and their employees. The Davis-Bacon Act of 1931 is the legislation that requires payment of prevailing local wages on public works projects.

The Erdman Act Put into Place a Requirement That Companies