Next week, the House Economic Matters Committee will hear legislation to require an employer under a state contract or subcontract for services of over $100,000 to pay an hourly wage of at least $11.95.

The Maryland Chamber opposes this bill. It undermines the purpose of the competitive bidding process, which is to get the best service at the lowest price. By artificially inflating wage levels of state contractors, the bill will add unnecessary costs to state procurements and add to the state’s deficit. Wages should be set in the marketplace, not by government.

This legislation, HB 430, is similar to a bill the legislature passed in 2004. That bill was vetoed by former Governor Robert Ehrlich. The General Assembly attempted to override the veto, but fell short by three votes in the Senate.