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House of Representatives
Session of 2021 - 2022 Regular Session


Posted: February 17, 2021 10:01 AM
From: Representative Barbara Gleim
To: All House members
Subject: Prevailing Wage - Raising the Threshold for Applicability (Prior HB581 F. KELLER)
In the near future, legislation will be reintroduced from the 2019-20 session (HB581 F. KELLER), 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 $207,000 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 2019. This is commonsense reform, realizing that projects of similar scope and size cannot be constructed in 2019 for the same cost as they were in 1963.

Introduced as HB587