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. The fees for such consultant services routinely total as much as 5 percent of the project’s hard costs—money that is not only unproductive from the point of view of enhancing the project’s quality but also often not affordable by small contractors and developers”. This is the type of costly, bureaucratic red tape that businesses do not need; it drive down growth and efficiency, costing taxpayers – and the economy at large – in the end.
Read this case study of prevailing wages in New York to see some key points.