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From the category archives: Prevailing Wage

Prevailing Wage

New Study Finds NY’s Prevailing Wage Increases Cost of Public Construction by Up to 25%

A new report released by the Empire Center for Public Policy on April 24 found that prevailing wage requirements inflate the cost of publicly funded construction projects in New York by between 13 percent and 25 percent. The varying percentages are based on the area or region of the state. Taxpayers can expect to pay billions in extra costs, given the tens of billions the state plans to spend on public projects over the next five to 10 years.   Read the rest of entry »

Arkansas Repeals State Prevailing Wage Law

On April 7, Arkansas Gov.Asa Hutchinson signed a bill repealing the state’s prevailing wage law. The legislation, SB 601 (Act 1068), was approved by the Arkansas House of Representatives on March 30 by a vote of 70-24; the Arkansas Senate passed the bill on March 21 by a bipartisan vote of 28-5. Arkansas is now the 22nd state without a prevailing wage and the second state to take significant action on the issue this year. Kentucky signed a prevailing wage repeal bill into law in January. In 2015, Nevada made significant reforms to its prevailing wage law, while Indiana and West Virginia joined the list of states without a prevailing wage.  Read the rest of entry »

Free Enterprise Momentum Continues with Passage of Prevailing Wage Repeal and Right to Work Laws in Kentucky

Kentucky became the 27th Right to Work state and 21st state without a prevailing wage after Gov. Matt Bevin signed ABC-supported legislation. The free enterprise-based laws are historic victories for the merit shop platform and provide tremendous momentum at the state level to begin the 2017 legislative season. Read the rest of entry »

Effort to Override Veto of Bill Tying Prevailing Wage to Union Rates in Illinois Fails

In a victory for taxpayers and merit shop contractors, the Illinois House of Representatives failed to reach the three-fifths majority required to override Gov. Bruce Rauner’s (R-Ill.) veto of S.B. 2964. The bill would have tied prevailing wage rates for public projects to local union rates. Read the rest of entry »

Illinois Governor Vetoes Bill Tying Prevailing Wage to Union Contracts

On July 22, Illinois Gov. Bruce Rauner vetoed a bill that would have significantly changed the prevailing wage calculation process by tying wage rates to union collective bargaining agreements. In vetoing the bill, Gov. Rauner said Senate Bill 2964 would effectively discount the wage rates of those who have chosen not to join a union and who make up a majority of the construction workforce.  Read the rest of entry »

West Virginia Enacts Prevailing Wage Repeal and Right to Work

On Feb. 12, the West Virginia legislature voted 18-16 to override Gov. Earl Ray Tomblin’s vetoes of  a prevailing wage repeal bill and the West Virginia Workplace Freedom Act, making West Virginia the 26th Right to Work state in the country and the fourth state to pass Right to Work since 2012. 

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New Hampshire Rejects Prevailing Wage Bill

Last week, the New Hampshire House rejected a bill (House Bill 1641) that would have required prevailing wage be paid on all state construction projects. Citing a union-backed study, proponents of the bill argued the legislation would create jobs, spur economic activity, and raise workers’ wages without increasing the cost of projects. Opponents rejected those assertions and insisted the state would pay more for construction projects under the provisions of the bill. 

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Prevailing Wage’s Impact on Affordable Housing

The New York Independent Budget Office (IBO) has released a revised report on the impact prevailing wage requirements would have on affordable housing projects built with the 421a property tax break. The 421a tax credit had been the subject of extensive negotiations in the past months. In Jan. 2016, the parties involved announced they could not reach a compromise, killing the tax credit and jeopardizing Mayor de Blasio’s plans for 80,000 affordable housing units for New York City residents. The agency had initially estimated that prevailing wage requirements would add $2.8 billion to the initiative’s total, but the agency says that figure was low as a result of data errors. After receiving additional information from the Department of Housing Preservation and Development, IBO now estimates prevailing wage requirements would cost the city an additional $4.2 billion, increasing affordable housing construction costs by 23 percent or $80,000 per unit
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West Virginia Legislature Advances Prevailing Wage Repeal, Right to Work

On Feb. 4, the West Virginia Legislature sent two important bills to the governor’s desk. The House of Delegates passed ABC-supported right-to work legislation, the “Workplace Freedom Act” (SB 1) by a vote of 54-46, while the state Senate approved legislation repealing the state’s prevailing wage law along party lines. The measures were intensely debated in both chambers in the weeks leading up to the votes. West Virginia’s prevailing wage law was mired in controversy following the passage of a reform bill in 2015 and ABC’s West Virginia Chapter has been a vocal supporter of repealing the state’s prevailing wage. Read the rest of entry »

Wisconsin Reforms Prevailing Wage Laws

During a controversial budget session, Wisconsin significantly reformed its prevailing wage laws with the help of the ABC Wisconsin Chapter which organized a coalition of local chambers of commerce, school districts, small businesses, and municipal utilities to repeal prevailing wage requirements on all Wisconsin public works projects except those built by the state of Wisconsin and state highway projects. 
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