Keller Introduces Prevailing Wage Legislation
To help save taxpayers money on public works projects, Rep. Fred Keller (R-85) has recently introduced House Bill 1329, which would raise the threshold of the Prevailing Wage Act from $25,000 to $185,000.
“I believe that the current threshold of $25,000 is archaic and needs to be adjusted for inflation,” said Keller. “The current limit is more than 48 years old and is long past due for reconsideration.”
The Prevailing Wage Act, enacted in 1961 with the current threshold, establishes “prevailing” minimum wage rates that must be paid on public construction projects. The rates established under the act often reflect union wage rates and may not be representative of the actual wage rates paid on most private sector construction projects in a municipality.
The Prevailing Wage Act also states that public projects whose costs are less than this amount are not subject to the act’s requirements. However, the requirement for higher wage rates on public construction projects above the threshold can elevate the costs of such projects anywhere from 10 percent to 20 percent.
“This legislation also establishes an automatic cost-of-living adjustment to ensure that the threshold is adjusted each year,” said Keller. “I firmly believe that adjusting the threshold for inflation makes common sense and will help to relieve our municipalities and school districts from Prevailing Wage Act mandates for work on relatively small projects.”
Keller’s legislation is strongly supported by the Pennsylvania State Association of Township Supervisors, Pennsylvania State Association of Boroughs, Pennsylvania School Boards Association, and other local government organizations.
For more information on this and other issues, residents can visit Keller’s website at RepFredKeller.com.
State Representative Fred Keller
85th District, Pennsylvania House of Representatives
Contact: Joshua Zimmerman