LOC News
Prevailing Wage Legislation Scheduled for Public Hearings – LOC to Oppose
The LOC will testify next week in opposition to several public contracting bills that would significantly alter the current process by which prevailing wage rates are determined by the Oregon Bureau of Labor and Industries (BOLI). Details on public hearing dates, including how to submit testimony, can be found below. Under current law, prevailing wage rates are determined through an independent wage survey that is intended to reflect construction wage rates within various regions across the state. If the survey process does not produce sufficient wage data, BOLI can utilize additional data sources, including collective bargaining agreements.
HB 2419 and SB 493 would eliminate the independent wage survey in regions where a collective bargaining agreement exists for a particular occupational trade. As a result, the wage rates reflected in the collective bargaining agreement would represent the minimum wage standard for all work done under that occupational trade within the region. If more than one collective bargaining agreement exists, SB 493 would require BOLI to take an average of those wage rates, while HB 2419 would require use of the highest wage rate.
In 2018, similar legislation passed in the state of Washington (SB 5493) where there have since been notable implementation challenges, including significant wage spikes for certain trades/occupations. The LOC is highly concerned that relying upon one collective bargaining agreement, which could reflect specialized work or unique project-based needs, could result in significant wage spikes and contribute to a lack of certainty for cities when planning and budgeting for public infrastructure investments and affordable housing projects. In addition, it is our understanding that there is ongoing litigation in Washington related to this law. While the LOC is open to participating in discussions to address alternatives to the independent wage survey, we remain concerned that these bills could result in significant unintended outcomes.
In addition to HB 2419 and SB 493, the House Business & Labor Committee will also hold a public hearing on HB 2597, which would consolidate prevailing wage regions from 14 to five. These regions ensure that prevailing wage rate determinations reflect local economies and wage rates for construction. The LOC will oppose this legislation, as the proposed consolidation will group many rural parts of the state with larger, urban areas. The LOC believes it is imperative that the Legislature engage in a transparent and data-driven process prior to proposing changes to existing regions.
A public hearing on HB 2419 and HB 2597 is scheduled for Wednesday, February 10 (8 a.m.) in the House Business & Labor Committee. Submit testimony on these bills here. The public hearing on SB 493 is anticipated to be scheduled for Tuesday, February 9 (8 a.m.). Submit testimony on SB 493 here.
Contact: Tracy Rutten Rainey, Lobbyist – trutten@orcities.org
Last Updated 2/5/21