Help Protect Ohio's Prevailing Wage Law by Being Informed, Active!
Ohio's Prevailing Wage Laws protect union workers and working-class families by providing fair wages, meaningful employment and training opportunities. Learn how YOU can help protect Prevailing Wage from constant attacks by knowing the facts about the law and all it does.
Understanding the Dramatic Changes to Ohio’s Prevailing Wage
This past fall, the people of Ohio soundly rejected Gov. John Kasich’s attacks on organized labor when they defeated Issue 2. However, Gov. Kasich and General Assembly Republicans were successful in their attempts at weakening Ohio’s Prevailing Wage Law.
House Bill 153, the state budget bill, made significant changes that have diluted Ohio’s Prevailing Wage Law. Moving forward, it is important to understand how these changes will affect construction projects across the state.
One of the most dramatic changes is that H.B. 153 significantly raised the prevailing wage threshold levels. The prevailing wage threshold for new construction projects has now been adjusted to $125,000. H.B. 153 raises the threshold for new construction projects in both fall 2012 and 2013. On September 29, 2012, the threshold will increase to $200,000 and September 29, 2012, it will increase to $250.000.
The new threshold for “reconstruction, enlargement, alteration, repair, remodeling, renovation, or painting” is $38,000. Under H.B. 153, the prevailing wage threshold for reconstruction, enlargement, alteration, repair, remodeling, renovation, or painting will increase to $60,000.00 on September 29, 2012, and to $75,000 on September 29, 2013.
The prevailing wage threshold for new construction that involves roads, streets, alleys, sewers, ditches and other works connected to road tor bridge construction has increased to $82,137. Meanwhile, any reconstruction, enlargement, alteration, repair, remodeling, renovation, or painting to any roads, streets, alleys, sewers, ditches and other works connected to road or bridge construction has increased to $24,609.
Additionally, H.B. 153 prohibits a public authority from applying the prevailing wage requirements to any public improvement undertaken by a school board or educational service center. Meaning, Gov. Kasich and his Republican allies in the General Assembly have barred school districts from applying prevailing wage to any school construction across the state.
H.B. 153 also alters prevailing wage on projects partially funded by the Ohio Department of Development. Private projects that receive funds from the Ohio Department of Development are no longer required to utilize prevailing wage.
With these dramatic attacks on Ohio’s Prevailing Wage Law, it is more important than ever for locals to keep their Davis-Bacon rates updated. The threshold for the federal prevailing wage, Davis-Bacon, is $2,000, which is significantly lower than the new threshold amounts in Ohio.
If you need assistance filing your Form 654’s to update your Davis-Bacon rate, contact ACT Ohio.
Prevailing Wage Laws
Protecting Skilled Construction Workers
ACT Ohio works to defend and protect the State of Ohio’s Prevailing Wage Law, which is key to protecting Ohio’s construction workers and their wages and benefits – while also protecting the state’s citizens by allowing for the sustainability of a construction workforce that delivers quality projects on-time and on-budget and supports local economies.
Prevailing Wage Laws require construction contractors who work on public projects to pay construction workers at least the prevailing wages and benefits in the area in which they are working. The Prevailing Wages are the actual hourly wages, benefits and overtime to be paid to workers, calculated by the U.S. and Ohio Departments of Labor for construction trades.
Ohio has had a Prevailing Wage Law in place since 1931 to protect its construction trades workers.
Research has consistently shown that Prevailing Wage Laws do not result in significant cost variations on construction projects and, in fact, can produce cost savings as the result of better investment in the workforce and the resulting higher-quality and on-time construction.
School Construction Falters without Prevailing Wages
When the State of Ohio lifted the Prevailing Wage Law for State-Funded School Construction in 2001, there was a documented surge in the poor and substandard quality of work being done on numerous schools across the state, leading to costly overruns and repairs.
The Benefits of Prevailing Wage Laws
- Prevailing Wages protect construction workers’ wages because contractors are not able to undercut the set wages.
- Prevailing Wages protect construction workers’ benefits because contractors are more likely to provide benefits to the skilled workforce that results when prevailing wages are paid.
- Prevailing Wages produce a better-skilled workforce and higher-quality construction because contractors will invest in worker training and safety programs.
For Project Owners
- Prevailing Wages protect customers by keeping overrun costs low and quality high by utilizing a workforce that is paid properly to do the job right the first time.
- Prevailing Wages result in fewer workplace accidents because contractors are more likely to employ workers who are well-trained.