|Posted:||January 5, 2017 03:08 PM|
|From:||Representative Fred Keller|
|To:||All House members|
|Subject:||Legislation Amending the Pennsylvania Prevailing Wage Act, Raising the Threshold for Applicability|
|In the near future, legislation will be reintroduced from last session (HB 63) to update the threshold of the Prevailing Wage Act for the effects of inflation. The legislation will raise the current threshold of $25,000 to $197,000, and establish an annual inflation adjustment to ensure the threshold remains current.
Prevailing wage became Pennsylvania law for public works projects in 1961. In 1963 it was recognized that certain projects should be exempt from prevailing wage bidding, and the threshold for exemption was established at $25,000. Projects exempt from this unfunded mandate in 1963 should still be exempt in 2015. This is commonsense reform, realizing that projects of similar scope and size cannot be constructed in 2015 for the same cost as they were in 1963.