Blunt enacts Fairness in Public Construction Act

Gov. Matt Blunt on Wednesday signed Senate Bill 339, which creates the Fairness in Public Construction Act.

The bill states that a public body may not require or prohibit bidders from engaging in a relationship with a labor organization when more than 50 percent of a project is funded by state money. Public bodies who seek to use union-only project labor agreements also must comply with a public hearing and appeals process.

Additionally, the bill addresses the use of wage subsidies, or job targeting funds – referring to a portion of a worker's wage that is deducted and given to the employing contractor. Those funds could be used to subsidize bids for future construction projects or may be collected as a payment to the contractor to reduce labor cost. The bill requires that wage subsidies must not lower an employee's wages below the prevailing wage for a particular occupation.

Also under the bill, the penalty for an employer found not in compliance with the prevailing wage will be raised from $10 per day to $100 per day, per employee.