The
Public Policy Foundation of West Virginia Feb. 16 released a study showing that prevailing wage requirements in West Virginia are at least 49 percent above market wage rates in the construction industry and possibly as high as 74 percent. In addition, the study showed that as many as 1,500 additional jobs could be created if state prevailing wage laws were repealed or reformed to reflect actual market wages.
The study, “An Economic Examination of West Virginia’s Prevailing Wage Law,” recommended a full repeal of the prevailing wage requirements in West Virginia to increase the efficiency of the state’s economy so “the market would then be able to determine the most efficient allocation of resources.”
“The goal of prevailing wage legislation is to increase work for in-state construction workers,” the study noted. “However, the current method for determining the prevailing wage rates is severely biased, creating unemployment and inequities among workers who normally earn the same amount in regular market employment.”
If repeal of the prevailing wage requirements is not possible, the study offered recommendations for improving the law that include: changing the method of establishing prevailing wage rates so that they better reflect true prevailing local market rates; mandating the updated method by law; and creating exemptions to the prevailing wage for small contracts and for schools.
To view the study, click
here.