Delaware: Prevailing Wage Legislation Dies in the Senate

Date: June 19, 2014

Related Content: News State Delaware

HB 287, which would have, under certain conditions, used a labor organization’s collectively bargained rate as Delaware’s prevailing rate for a particular class of workers, died in the Senate yesterday, the last day of session. This bill died in the
Senate Labor & Industrial Relations Committee due to the outcry from the
building community. Thank you to all who took action.

Wednesday June 18 the Delaware House of Representatives passed House
Bill 287
  by a
26 – 13 vote. HB 287 was sent to
the state Senate to be considered in committee. 

HB 287
would have established
a set five-year prevailing wage rate and would have eliminated the valuable survey
currently used, which will result in higher construction costs. It would have applied
to contracts relating to a public works project in excess of
$100,000 for new construction, or $15,000 for alteration, repair, renovation,
rehabilitation, demolition or reconstruction.

Under HB 287:

  • The Delaware Department of Labor will establish the
    prevailing wage for each industry (including laborers
    and mechanics) based on the rate that has consistently been agreed on
    for two consecutive years between labor organizations and their employers in
    their respective counties
  • The agreed rate of pay designated by the
    craft’s collective bargaining agreement will become the prevailing wage for a
    period of 5 years
  • The raise be determined by the collective
    bargaining agreement rate at the time the prevailing wage survey is conducted
    for that craft, county, and year
  • If the prevailing wage cannot be determined in
    any locality because the collective bargaining rate has not prevailed for two
    consecutive years, the Department of Labor will use the prevailing wage as
    established by the Department’s annual prevailing wage survey
  • There will be a one-time challenge of the
    prevailing wage rate per cycle

Related Content: News | State | Delaware

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