The Bill: HB846
Title: Prohibiting Split Rates & Providing for Custom Fabrication on Public Works Projects
What Does it Mean: The Pennsylvania Prevailing Wage Act requires the Secretary of Labor and Industry to determine the prevailing wage rate for all jobs on a construction project. Some contractors circumvent the law by paying “split rates”. A split rate occurs when the same worker is paid two different rates (one higher, one lower) for the same job on the same day. Our legislation simply prohibits this practice. Enactment of this legislation will serve to restore the intent of the law as well as to ensure that workers are paid appropriately on publicly funded projects
The Go Big Small Biz Network’s Position: We oppose. This takes the non-unionized smaller business out of contention.
Passed: Labor&Industry 14-12 down party lines.
Quotes:
Rep.Grove(R), “10-15% increase in cost of the project, 20-23% increase in rural areas, locally 30% increase in cost. Trends are to repeal the Prevailing Wage Law. 24 states do not have Prevailing Wage Law.
Rep.Miller(D), “Healthcare, pensions goes with Prevailing Wage. It lifts up the quality. I wish we were all unionized.”
Rep.Dawkins(D), “How do we build America back without paying Americans. That is why manufacturing moved to other countries.”
Rep.Gleim(R), “It does not work in practice. Companies will avoid the Commonwealth because of this. We will lose business. What authority does L&I have to dictate prevailing wage?”
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