Maryland Chamber Vice President of Government Affairs Ron Wineholt testified last week in opposition to HB 970 - Procurement - Prevailing Wage. This legislation would require contractors working on state or local public works projects that cost more than $500,000 and use any state funds to pay a state-determined wage level to their employees.

Current law applies this prevailing wage to projects funded with at least 50 percent state funds. This bill would make the prevailing wage applicable on projects that use any state funds.

Studies by the Department of Legislative Services in 1989 and 1995 determined that the prevailing wage law inflated the cost of public works projects by 5 to 15 percent. “The prevailing wage law undermines the competitive bidding process by requiring projects using state funds to pay a higher labor price than would be required through market based competitive bidding,” Wineholt said. “At a time when Maryland needs to build more schools, this bill will cause us to build less.”

To view the Chamber’s complete position statement, click here. For more information, contact Ron Wineholt at rwineholt@mdchamber.org.