Pennsylvania House Bill HB160

Pennsylvania 2025-2026 Regular Session

• Introduced: 1/16/25
• Refer: 1/16/25

Caption

Further providing for definitions.

Impact

The implications of HB 160 are substantial for state labor law and the construction industry. By raising the threshold, many smaller and mid-sized public works contracts will no longer be required to adhere to prevailing wage laws. This might lead to cost savings for public entities as labor costs could decrease; however, it may also result in lower wages for workers in industries that perform smaller public works projects. Overall, the alteration could shift the dynamics of labor standards in Pennsylvania, potentially leading to a wage disparity among workers on public projects.

Summary

House Bill 160 intends to amend Pennsylvania's Prevailing Wage Act by raising the threshold for what constitutes a 'public work'. As proposed, the bill increases the estimated cost ceiling for public work projects from $25,000 to $257,000, with this amount subject to annual adjustments based on changes in the Consumer Price Index. The change is significant as it could potentially exempt a large number of construction projects from prevailing wage requirements, which are designed to ensure workers in publicly funded projects are paid fairly according to local standards.

Sentiment

The sentiment surrounding HB 160 appears to be mixed amongst stakeholders. Proponents argue that the bill will simplify public contracting and reduce costs, which could encourage more projects and infrastructure development across Pennsylvania. Conversely, critics argue that exempting smaller projects from prevailing wage standards could undermine worker pay and conditions, ultimately harming the working class. The bill has sparked a debate on economic efficiency versus worker protection, showcasing a divide between fiscal conservatives and labor advocates.

Contention

Notable points of contention surrounding HB 160 include concerns from labor unions and worker advocacy groups who worry that reducing wage protections will lead to a decline in overall living standards for construction workers. There are fears that the bill may erode the careful protections established in the original Prevailing Wage Act, leading to a 'race to the bottom' in wages for public work projects. The legislative discussions around this bill are expected to be contentious, as both sides present compelling arguments regarding the economic and social ramifications of altering established labor laws.