Lawmakers want to stop prevailing wage on local projects

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(The Center Square) – Ohio’s local governments could soon save money by not paying the state’s minimum wage on public projects.

Those governments could pay the minimum but would have the option to decide to take bids with less worker compensation, according to Reps. Beth Lear, R-Galena, and Meredith Craig, R-Smithville, who introduced the new legislation Monday.

All public projects are mandated to pay prevailing wage rates. House Bill 513 would eliminate the state mandate.

“At a time when everyone in Ohio is facing soaring property taxes, the Legislature must act to limit mandates on local government and make it less expensive for them to operate,” Lear said. “This legislation would give them the ability to spend less on construction – if they choose to do so. It just makes sense, dollars and cents.”

The two lawmakers said minimum wage drives up costs for local government and reduces efficiency. They also believe it will save money by turning over control of spending and project management to local entities.

“My county seat, the city of Wooster, could have saved nearly $2 million in capital costs if permissive prevailing wage had been in place through the end of 2025,” Craig said. “It is hypocritical for the state Legislature to ask their local governments to reduce the property tax burden on homeowners, while mandating prevailing wage.”

Lear and Craig also argue requiring a minimum wage limits competition in the bidding process but setting a wage floor contractors must meet. They say it keeps smaller, nonunion contractors out of the bid process and eliminates potential savings local governments could receive.

The bill is in the House Commerce and Labor Committee.