Republican lawmakers introduced a bill that would change the way the prevailing wage for construction projects is calculated.
The bill would replace the prevailing wage survey with a method based on payroll information currently being offered to the Department of Labor.
The act also removes the Prevailing Wage Advisory Committee from the Delaware Code.
The Committee was established to advise the General Assembly how the prevailing wage survey may be improved or if the survey should be eliminated.
[pdf-embedder url=”http://DelawareBusinessNow.com/wp-content/uploads/2018/05/HB293.pdf”]
According to a summary of the bill, the committee reported in January 2016 that “the best option is to continue the survey for 2016 and report back to the legislature in the future.”
Since the act replaces the prevailing wage survey, the Committee is no longer needed, sponsors stated.
If passed, the act takes effect on January 1, 2019.
Critics of the prevailing wage have long claimed the lack of participation in the survey drives up construction wages beyond the actual market rate. Critics have also claimed that the current wage calculations drive up the cost of many public projects, including schools.
The prevailing wage dates back to the Great Depression, a time when roving workers would take low wages. Unions say the wages allow construction workers to earn a fair wage and benefits.
The bill was assigned to the House Administration Committee.
