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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.
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.
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.
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.
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.
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.
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, bu
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.
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.