The House Economic Matters Committee defeated legislation that would have required 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 have made the prevailing wage applicable on projects that use any state funds.

The Maryland Chamber opposed the bill, arguing that 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.

The committee voted down the bill by a vote of 16-5. You can see how the committee voted here (pdf). Legislators voting “yea” supported the Chamber’s position.