Indiana Governor Mike Pence this afternoon signed legislation repealing the state’s common construction wage law (CCW).

The law allowed local boards to set wages for public construction projects.  Opponents of the CCW said it artificially raised prices of projects, while supporters say it was necessary to assure quality work and maintain good wages.

Governor Pence released the following statement…

“Wages on public projects should be set by the marketplace and not by government bureaucracy. By repealing the common construction wage, our state is putting hard-working taxpayers first, lessening the burden on cash-strapped local governments and schools, and opening doors of opportunity for small businesses across our state. This legislation is a great victory for hard-working Hoosier taxpayers, and I am pleased to sign it into law.”

Meanwhile, Democrats blasted the measure.   State Rep. David Niezgodski stated…

“The common construction wage created a stable work environment that paid good wages to working class Hoosiers. It ensured that local projects were done by Hoosier workers, so the wages they earned and the taxes they paid stayed right here in Indiana. It supported local job training programs that attracted and retained skilled Hoosier workers. It supported local building contractors, which benefited local economic activity.”

During the 2015 General Assembly the bill was amended to include the following provisions…

  • Requires all contractors to carry liability insurance and be prequalified by the Indiana Department of Administration or the Department of Transportation.
  • Requires contractors with at least 10 employees to offer ongoing training to their workers.
  • Requires general contractors to perform at least 15 percent of their contracted work (measured in dollars) rather than using subcontractors.
  • Requires contractors to participate in the E-Verify program to ensure their workers are legally present in the U.S.
  • Prohibits contractors from paying their workers in cash.
  • Requires contractors to maintain their records for three years after the completion of a government project and to make the records open to inspection by the Department of Workforce Development.