On Monday, the Pennsylvania Chamber of Business and Industry celebrated a recent state Supreme Court ruling about the Prevailing Wage Act as a victory for taxpayers and employers.
The ruling upheld the 2022 Commonwealth Court ruling on the application of the act, and reinforces the longstanding interpretation of the law.
“This ruling reaffirms our position that the Prevailing Wage Act should not be applied more broadly to private projects. The decision helps maximize private sector investment and growth while providing clarity for businesses operating in Pennsylvania,” PA Chamber President and CEO Luke Bernstein said in a statement.
The Supreme Court ruled in the case of Ursinus College v. Prevailing Wage Appeals Board applying prevailing wage requirements on the college would constitute unjustified expansion of the law’s scope and that the municipal authority in the case had no active involvement beyond facilitating the project’s financing.
The PA Chamber had previously led a coalition of industry associations in submitting amicus curiae briefs to the Commonwealth Court and the Supreme Court, arguing that the Prevailing Wage Ac applies only to “public works” projects where the government entity has a close relationship, as a contracting party or a funder, with a project.
Bernstein said the chamber would continue to advocate for businesses in the state.
“We will continue to champion sensible interpretations of Pennsylvania’s labor laws that balance protections for workers and maintaining a competitive business environment,” he said. “With the clarity that this ruling provides, employers can continue to use this type of financing model without risking triggering the Prevailing Wage Act, which can complicate project delivery and significantly increase costs.”