Indiana's Common Wage Law (IC 5-16-7) requires contractors on government-financed construction projects to pay workers no less than the common wage rate which prevails in a local area for the specific types of work being performed. Indiana's law covers most state and local construction projects financed with taxpayers' dollars. The law is in effect for the construction, reconstruction, alteration or renovation of a public building, airport facility or other structure that is paid out of a public fund or out of a special assessment. There are some exceptions: municipal electric and gas utilities, locally funded housing projects, and some economic development projects. Common wage schedules can be determined for three separate types of projects: building construction, heavy construction, and highway construction.
Common wage laws were designed to protect workers and contractors from the unscrupulous practice of cutting wages in order to be the low bidder on public construction work. These laws prevent the government from using its tremendous economic resources to destabilize local construction markets. The laws benefit both the union and non-union sectors of the industry, because they prohibit public funds from being used to undermine local prevailing wages. This ensures that competition is based on; efficient management, sound engineering, good design and quality craftsmanship.
The Indiana State AFL-CIO, in coalition with the Indiana State Building & Construction Trades Councils, will work diligently to prevent the weakening of public work and public bidding laws and support any legislation that strengthens the laws.
Why a common wage law is needed
Contractor efficiency should determine the contract award. When the actual construction bid phase is underway, all construction contractors |
