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House of Representatives
Session of 2019 - 2020 Regular Session


Posted: January 15, 2019 09:12 AM
From: Representative Francis X. Ryan and Rep. Greg Rothman
To: All House members
Subject: LEGISLATION: Prevailing Wage – Political Subdivision Exemption
In the near future Representative Rothman & myself plan to reintroduce Rep. Marsico’s legislation from last session (HB 532) which would amend the state Prevailing Wage Act to exempt political subdivisions and their authorities, agencies, or instrumentalities from the Act's coverage.

Though the legislation would initially repeal the prevailing wage mandate, it also contains a provision whereby local government organizations could elect, by ordinance or resolution, to subject themselves once again to the requirements of the Act.

The Prevailing Wage Act currently requires that all public bodies (defined as the Commonwealth, any of its political subdivisions, any authority created by the General Assembly, and any instrumentality or agency of the Commonwealth) require in any contact for "public work" that the prevailing minimum wage, as determined by the Secretary of Labor and Industry, be paid to workmen on the project.

Numerous credible studies have shown that the use of prevailing wage rates generally raises the cost of public construction projects anywhere from 5% - 20%. As a result, many municipalities are struggling to keep costs down, keep property taxes under control, and balance their budgets.

This commonsense legislation was supported last session by numerous statewide interest groups, including the PA School Boards Association, the Commonwealth Foundation, the Associated Builders and Contractors (ABC), the PA State Association of Township Supervisors, the Boroughs' Association, the County Commissioners' Association, and the Municipal Authorities' Association.

Please join us in cosponsoring this important piece of legislation.

Introduced as HB323