Prevailing Wage Repeal Act Exposed

The Prevailing Wage Repeal Act was endorsed by ALEC's Commerce, Insurance and Economic Development Task Force, approved by the ALEC Board of Directors in January 1995, and re-approved by the ALEC Board of Directors in January 2013.

CMD's Bill Summary

This bill would repeal the "prevailing wage" requirements in state law. Paying the prevailing wage (rather than a minimum wage) for government projects is designed to ensure quality work is done on public projects and that high-quality contractors bid for government projects. It also helps keep wage standards in the construction industry. This bill would lower wage standards and undermine the competitive position of union or higher-wage contractors.

ALEC Bill Text

This act repeals all laws that require administratively determined employee compensation rates, including wages, salaries and benefits.

Model Legislation

Section 1. {Short Title.}

This Act shall be known as the Prevailing Wage Repeal Act.

Section 2. {Legislative Declarations.}

The legislature finds and declares that:

(A) Prevailing wage laws increase the costs of government and business and diminish the number of jobs generated by the economy.

(B) Prevailing wage laws raise the wages and benefits for the few at the expense of taxpayers.

(C) Prevailing wage laws add as much as 30 percent to the cost of public construction, renovation, and other public services.

(D) Prevailing wage laws are most harmful to the young, minorities, and to other new or would-be entrants to the work force.

(E) Repeal of prevailing wage laws will increase the efficiency of public investments, reduce the cost of government, and eliminate government's preferential treatment for the politically powerful few.

Section 3. {Definition}

Prevailing wage means any administratively determined employee compensation rate, including wages, salary, and benefits.

Section 4. {Repeal of State Law.}

Any and all prevailing wage laws are repealed.

Section 5. {Severability clause.}

Section 6. {Repealer clause.}

Section 7. {Effective date.}