Ohio’s Prevailing Wage Law ensures that the state’s construction workers receive fair local wages on all publicly funded construction projects – by preventing building contractors from undercutting workers’ wages and benefits. The law was established in 1931 to require construction contractors who work on public projects to pay construction workers at least the prevailing wages and benefits in the area in which they are working.

Since then, the Ohio Supreme Court has determined that the Prevailing Wage Law preempts any state or local law to the contrary.

Research has consistently proven that prevailing wages protect Ohio’s workers and its citizens by delivering quality projects on-time and on-budget while supporting and protecting local economies. Data regularly demonstrates that where prevailing wages are applied, there are no significant cost variations from lower-wage situations and, in fact, savings are realized as the result of better investment in the workforce and the resulting higher-quality construction.

Click here to read about the history of Prevailing Wage. (Adobe Acrobat Reader Required)

Click here for research reports on Prevailing Wage.

Examples of the Prevailing Wage research include:

“When nine states chose (to eliminate Prevailing Wage laws), the results were significantly lower construction wages, slightly higher construction employment, a tripling of cost overruns on public works, an across-the-board 15-percent increase in construction injuries, a 40 percent decrease in apprenticeship training, and an even further decline in minority apprenticeship training.”
Losing Ground: Lessons from the Repeal of Nine ‘Little Davis- Bacon’ Acts, Peter Philips, et.al; University of Utah

“…There is no measurable cost difference between similar structures as a result of prevailing wage requirements. Consequently, reforming or repealing these laws will not lead to the kinds of substantial savings promised by proponents of repeal.”
The Effect of State Prevailing Wage Laws on Total Construction Costs, Mark J. Prus, State University of New York

“Any attempt to reduce construction expenditures by reducing wage rates will be met with a corresponding decrease in productivity which could, in fact, produce an increase in construction costs.”
Wages, Productivity and Highway Construction Costs Updated Analysis
Construction Labor Research Council

“A repeal (of Prevailing Wage laws) would cause wages and benefits to decline, with pension benefits taking the largest fall.”
Health Care and Pension Benefits for Construction Workers: The Role of Prevailing Wage Laws, Jeffrey S. Petersen, University of California at Berkley

“The prevailing wage law in Missouri, as well as in other states, creates a system of employment that is in the interest not only of the construction worker and his or her family, but of all citizens and state and local governments in Missouri. … The benefits of repeal (lower construction costs) are simply not there.”
The Adverse Economic Impact from Repeal of the Prevailing Wage Law in Missouri, Michael P. Kelsay and L. Randall Wray, University of Missouri – Kansas City

School construction in particular benefits greatly from Prevailing Wage laws and suffers both in quality and financially in the absence of Prevailing Wage, as proven in multiple research reports.

“The Dodge Reports … show only the construction costs at the start of projects. They do not show the final construction costs, which can be considerably higher if the company lacks the expertise to keep the costs within the level of the bid.”
Analysis … on Claimed Cost Savings from Exempting School Construction from Prevailing Wage Requirements, Herbert F. Weisberg, The Ohio State University

“Prevailing wage regulations offer school boards some assurance that the project will be skillfully built and workers on the job will be carefully managed. Consequently, prevailing wage regulations provide some assurance against cost overruns and downstream maintenance costs.”
A Comparison of Public School Construction Costs in Three Midwestern States that Have Changed Their Prevailing Wage Laws in the 1990s, Peter Philips, University of Utah

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