Legislation requires prevailing wages on most county-funded capital projects

On November 2, the Baltimore County Council passed a bill requiring the payment of prevailing wages for most county-funded capital projects. The legislation is designed to increase wages for many hourly paid workers, making capital construction projects in Baltimore County all the more expensive to perform. Let’s take a closer look at the legislation.

What does the bill require?

By requiring county contractors to provide prevailing wages on all covered contracts, the cost of labor will probably rise significantly. Prevailing wages under the legislation is defined as basic hourly rate and fringe benefit rate established annually by the State Commissioner of Labor and Industry for state-funded construction contracts in Baltimore County. In most cases, the prevailing wage is equivalent to the rate set forth in union collective bargaining agreements.

In addition to setting a prevailing wage, the new legislation also mandates that overtime be paid not just for more than 40 hours in a work week but also for any work performed more than 8 hours in a single calendar day or on a Sunday or legal holiday.

What contracts are covered by the new legislation?

The new law applies to any capital improvement contracts over $300,000 or county-subsidized capital projects receiving assistance over $5,000,000. It doesn’t apply to any capital improvement contract already subject to a federal or state prevailing wage law or awarded without competition or certain other limited exceptions.