prevailing wage Archives

House considers further changes to Missouri prevailing wage law

January 27, 2014 By Mike Lear

A House Committee has heard a proposal that would make changes to Missouri law governing out wage rates are set for public building projects.

Representative Warren Love (R-Osceola) proposes having the Department of Labor and Industrial Relations set prevailing hourly wages at the state average weekly wage as determined by the department for each occupational title in the area.

See Love’s proposal, HB 1306

Opponents of the bill note the legislature just passed changes to Missouri prevailing wage law, HB 34 in 2013.

Attorney Jim Fall with the Missouri AFL-CIO says even though the new law took effect August 28, its impacts are still not known.

“The new rates from that law have not even been established yet. They won’t be established until, I believe it is, March of this year,” Fall tells the committee. “So, we would be changing the law not only without a number of years to look at to see what would happen, we would never have seen what would happen, period.”

Proponents of the bill say last year’s legislation was more narrowly focused and more reforms are needed. They argue that allowing lower wages to be paid on public projects would stimulate more jobs by lowering overall costs and letting projects be undertaken.

Critics like Representative Michael Frame (R-Eureka) say the real goal is simply to lower worker’s wages to benefit local governments whose taxes are too low to be able to afford needed public works projects.

“You haven’t stepped up to the plate to make a tax where you can pay for these folks, but you’re saying, ‘Your wage is too high. We’re asking you to give us some type of entitlement here … some type of handout here … and charge less in our counties because we’re not willing to tax ourselves at a rate to employ you.”

The legislation has not received a vote.

House passes prevailing wage exemption for schools

March 4, 2013 By Mike Lear

The House has approved a bill to exempt most school districts in the state from prevailing wage law.

Representative Casey Guernsey (photo courtesy; Tim Bommel, Missouri House Communications)

Backers of the bill say many schools, particularly in rural parts of the state, have to put off construction and maintenance projects or leave them undone because they can’t afford to pay wages at the prevailing level.

The sponsor, Representative Casey Guernsey (R-Bethany), says schools are having to pay significantly more for the same work that costs private businesses much less. He says this change will let projects proceed that have been put off or gone undone.

“In my previous district and my current district I have and currently represent a little over 30 school districts. Every single one of them have a major project that it is imperative we allow them to solve.”

Representative Mike Lair (R-Chillicothe) says to him the proposal is not a labor bill but an education bill. He says it would free up more money in school districts that right now has to go to construction projects.

“Every dollar not used to fund that teacher in the classroom is a wasted dollar. We need to make sure the money that our taxpayers use that goes to education is used most profitably for the teacher, for the children.”

Democrats like Representative Michael Frame (D-Eureka) say the legislation is about labor and wages.

“I’ve heard it admitted on this House floor that if this legislation is successful, wages will be cut.”

Representative Mike Colona (D-St. Louis City) tells proponents their bill will hurt workers.

“You’re also going to have to go back to your constituents and say, ‘Hey, I cut your pay. You’re making less money, and in fact … that bus coming up from Texas? Those folks are going to be doing your jobs. So not only did I cut your pay, but you’re going to be out of a job.”

The bill exempts school districts in counties that do not have a charter form of government from prevailing wage requirements.

It now goes to the Senate.

Prevailing wage bill stirs heated debate in the House (AUDIO)

March 7, 2012 By Mike Lear

The first debate on the House Floor over prevailing wage has seen tempers flare and no vote taken.

Representatives Barney Fisher (left) and Jacob Hummel (right). Pictures courtesy, Missouri House Communications.

Representative Barney Fisher (R-Richards) says the ruling handed down by the State Supreme Court in March, 2011 in the case of Utility Services Incorporated versus the Missouri Department of Labor and Industrial Relations, several times, includes the word “confusing” and calls for a bright line definition between construction, maintenance and major alteration projects. He believes the Court was hinting that while it can not write legislation to redefine those terms, someone should.

Read the state Supreme Court ruling referred to by Representative Fisher.

Fisher says the current definition of “construction” in the prevailing wage law would include the painting of existing facilities. He says that has far-reaching effects when water systems have to be maintained, and equated it to a tax. “We all have to have water. So, senior citizens would be effected, the blind … low-income families, low-income individuals, single parent mothers, everybody who can least afford a tax increase in their water bills can hardly afford this.”

Fisher says his bill will add the clarity he believes the Supreme Court was hinting at, by helping contractors, government entities and the Labor Department differentiate between types of projects. “Look at that bright regulatory line and say this is a construction project and it belongs on this side of the line and should be paid a prevailing wage. This is a maintenance contract and it belongs on the other side of the line and should not be paid a prevailing wage. This is a major alteration and it qualifies now under the definition of construction and should be paid a prevailing wage.”

See Representative Fisher’s proposal, HB 1198

Representative Jacob Hummel (D-St. Louis City) says the bill will hurt the state’s laborers. He used the example of painters. “It seems to me like we’re going to give them around a $20 pay cut.”

Hummel says the desire to change the prevailing wage law stems from contractors not doing their jobs. “They’re too lazy to fill out their forms and send them into the Department of Labor like they’re supposed to do. If they did that we wouldn’t have this problem.”

Hummel confronted Fisher, saying the bill will force contractors to bid at prevailing wage to be competitive, an argument Fisher rejects. “You can’t show me in this bill where prevailing wage is cut.”

The legislation has been laid over.

AUDIO: Listen to the debate over House Bill 1198, 18:33