INDIANA'S COMMON CONSTRUCTION WAGE LAW:
Creating Local Job Opportunities and Fueling Indiana's Economy
FREQUENTLY ASKED QUESTIONS
Do rural communities have to pay big city
Common Construction Wage rates on local public works projects?
No, they do not. One of the assets of the Common Construction Wage Law is the control it provides to local communities. Common Construction Wage rates are determined on a county basis and in most cases the Common Construction Wage is significantly lower in rural areas than Indianapolis or Lake County. Local taxpayers determine the local wage rates to help ensure local workers and local contractors are not disadvantaged.
Do minorities and new craftsmen have the opportunity to work on Common Construction Wage projects?
Absolutely! The Common Construction Wage Law is designed to serve as a community job generator for all. States that eliminated common wages saw decreases in minority participation in construction trades and apprenticeship training programs. Some states have seen training reduced as much as 40%, with even greater decreases among minority apprenticeships.
Will Eliminating the Common Construction Wage Law lower Indiana's public works construction costs?
No, eliminating Common Construction Wage will not lower Indiana’s public works construction costs. In Indiana, labor wages only account for 23% of total building construction costs.
Reducing wages on a public works construction project will not generate extensive savings without paying workers illegally below minimum wage. Studies show that repeal creates no significant cost savings.
Will Eliminating the Common Construction Wage Law Improve the Indiana Economy?
No, eliminating the Common Construction Wage Law will not improve the Indiana economy.
In Indiana, the vast majority of common construction wage projects are secured by Indiana businesses. The law ensures local contractors are benefitting from public works projects built using local tax dollars. In addition, local workers from common construction wage projects are earning wages that enable them to purchase homes and spend locally.
A repeal of the Common Construction Wage law would create an opportunity for out-of-state contractors interested in bidding work with the lowest possible wages. If successful, Hoosier workers would be impacted by a decline in wages. The repeal of the Common Construction Wage law would negatively impact Hoosier families and the Indiana economy. Additionally, out-of-state construction workers working in Indiana normally pay income tax to their state of residence and not in the state of Indiana or local government.
Where Can I Find Past Common Construction Wage Settings for my County?
The Indiana Department of Labor maintains a list of all Common Construction Wage settings for the state of Indiana. Visit http://www.in.gov/dol/2840.htm to find past wage settings for your county.
What Can I Do If I Am a Construction Worker Who Was Not Paid the Common Construction Wage on a Public Works Project?
Contact the Indiana Department of Labor, Wage and Hour Division at (317) 232-2655 or visit http://www.in.gov/dol/2723.htm