Prevailing wage prevails 9-8 in Labor Committee

A version of the prevailing wage bill that died on the House floor last year when Democrats failed to muster 51 votes was approved by the House Labor Committee 9-8 Monday. The bill, which applies to public improvement projects of $100,000 or more, would allow local governments to opt out of paying prevailing wages.

Opponents said the bill would restrict or eliminate the competitive advantage of start-up contractors who underbid older companies in order to get business. They cited a study showing the vast majority of new jobs in the past 30 years were created by companies less than five years old.

Rep. Lance Horbach, R-Tama, called the bill Democrats' “blatant political payback” to labor unions.

Republicans were joined by Rep. Geri Huser, D-Altoona, in voting against HSB 699.