According to a 2015 study conducted by the Buckeye Institute, removing prevailing wage requirements for state education projects saved Ohio $487.9 million over a four year period. The primary reason being that the law inflated prices by mandating wages that are far above the market equilibrium; in many cases, the prevailing wage, compared to the average […]
The American Recovery and Reinvestment Act of 2009 (ARRA) expanded Davis-Bacon requirements to 40 additional federal programs, according to a Feb. 2010 study conducted by the Government Accountability Office (GAO). Although the impacts of these requirements vary among agencies (primarily because many are not directly involved in constuction activities), several, including the U.S. Department of Energy […]
A recent study by the Anderson Economic Group found that $2.3 billion per year in construction projects are subject to Michigan’s Prevailing Wage, costing Michigan taxpayers hundreds of millions every year because of costly, anti-business and unsustainable wage policies. The study further found that the vast majority – 90%, or $2.1 billion – of state construction […]
Complex, inefficient and unsustainable prevailing wage labor laws hinder economic growth and prevent a truly healthy economy. The study points out that, “In recent years, contractors and subcontractors have turned increasingly to expert third-party consultants to handle the burdensome bureaucratic work of compliance—assigning classifications to workers and tasks, assembling payroll reports, ensuring adequate record retention. […]
Recent efforts to improve the Davis-Bacon wage survey have not addressed key issues with timeliness, representativeness, and the utility of using the county as the basis for the wage calculation. Read further for more key information regarding the inefficiency of prevailing wages.