• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to footer

Nevada Business Magazine

The Decision Maker's Magazine

Subscribe Now!

  • Subscriptions
    • Print
    • Mobile App
    • Email
    • Nevada News & PR Wire
  • Features
    • New This Month
    • View Issues
    • Cover Stories
    • Feature Stories
    • Industry Focus
    • Building Nevada
    • Special Reports
    • Press Release Wire
    • Nevada Industries
  • Departments
    • A Matter of Opinion
    • Around the State
    • Business Indicators
    • Commentary
    • Commercial RE Report
    • Crossfire
    • Expert Advice
    • Face to Face
    • Free Market Watch
    • Inside Politics
    • Power of Attorney
    • Profit & Loss
    • Speaking for Nevada
    • Tech.knowledge.me
    • The Last Word
    • Vital Signs
  • Planning Calendar
  • Advertising
    • Advertising Info
    • Advertising Staff
    • Submission Requirements
    • Online Advertising
  • Events
    • NBM Events
  • About
    • About the Magazine
    • Contact the Staff
  • Connect
    • Business Directory
    • Press Release Wire
    • Business Calendar
    • Submit Listing
    • Post Press Release
    • Add Your Event
    • Sign Up
    • Log In
You are here: Home / Departments / Commentary / Prevailing Wage Laws: Time to End This Corrupt System

Prevailing Wage Laws: Time to End This Corrupt System

June 11, 2012 By Lyle Brennan 1 Comment

Nevada’s so-called “prevailing wage” laws cost taxpayers millions of dollars each year – many of these dollars go into union coffers instead of to workers. Once you know the facts about it, you’ll be as outraged as I am that this politically motivated system has been allowed to continue.

Prevailing wage laws require contractors who bid on public works projects to pay all employees at a rate determined by the Nevada Labor Commissioner. This rate was intended to be the average wage of workers in each category, but in fact, it bears no relation at all to average wages. A carpenter working on a public project may be paid a “prevailing wage” of $37.00 an hour, when someone performing exactly the same work in the private sector earns $22.00 an hour.

It’s easy to see how this could add up to millions of dollars for a large construction project. In fact, a 2011 study by the Nevada Policy Research Institute showed that prevailing wage laws cost Nevada taxpayers nearly $1 billion in excess costs for 2009 and 2010 alone. Across the nation, independent studies show that prevailing wage regulations add 10% to 30% to construction costs.

Nevada’s economic development efforts have also suffered due to its prevailing wage laws. Why would a developer of a large-scale project pay exorbitant wages in Nevada when he can go to a nearly state like Arizona or Colorado, which don’t have prevailing wages, and cut his labor costs by a third or more?

Here’s how it works: The Office of the Labor Commissioner annually surveys employers to gather information on wages paid to workers, and the results of the surveys are used to establish prevailing wages. This data could easily be obtained from the Nevada Department of Employment, Training and Rehabilitation (DETR), which has an entire division that conducts this type of research. So, why the dual reporting system? To give unions an unfair advantage.

Because of the way the system was set up, it’s almost impossible for non-union contractors to fill out the surveys. First, they need to calculate the value of all fringe benefits for each employee and add those calculations to their hourly wage. Second, the job classifications in the survey are designed to fit union definitions, which most non-union contractors don’t use. They don’t have the time or resources to fill out the survey, so even though unionized labor comprises only 13 percent of the workforce in Nevada, it’s union contractors who return the surveys, it’s union wages that are reported, and union wages that become the “prevailing wage.”

It might be argued that the extra money paid for prevailing wages on government projects gives workers more money to spend, creating a multiplier effect. This might be true in the case of non-union shops, but the union system isn’t set up to benefit workers. Union contractors are obliged to deduct a set amount per hour from each worker’s check in order to fund pensions and other benefits. This money goes directly to the union, and if the worker leaves before qualifying for benefits, the union keeps the money. This creates a surplus of funds in union coffers that may be used for political contributions and for lobbying against non-union competition.

It’s time to repeal the prevailing wage law, replacing it with an average wage rate calculated by DETR. At the very least, we should create an exemption on all projects for K-12 schools, giving our school systems more money for vitally needed expenses like teachers’ salaries. As we gear up for November elections, let’s see where candidates stand on this important issue. Want more information, or want to join the fight against this system? Contact the Associated Builders and Contractors at www.abcnevada.org.

Filed Under: Commentary Tagged With: Associated Builders and Contractors, DETR, Nevada Department of Employment Training and Rehabilitation, Nevada Labor Commissioner, Nevada Policy Research Institute, prevailing wage laws, The Office of the Labor Commissioner

Sponsored Features

Sponsored Features

U.S. Bank’s Good TruckComes to Las Vegas

GC Garcia, Inc. Celebrates 25 YearsAnd Looks Back on Southern Nevada’s Changing Landscape

Las Vegas Valley Water DistrictSupports Local Fire-Fighting Efforts

Behind the ScenesWith a U.S. Bank Goals Coach

Advertise With Us

Advertise With Us. more details ►

Primary Sidebar

Daunting ChallengesMedical Education in Nevada

Industry FocusHealthcare

Time & SpaceArchitectural Design Trends

Cyber SecurityKeeping Your Business Safe

Nevada News & PR Wire

  • JPMorgan Chase Invests $225,000 to Support Workforce Training for Displaced Workers

  • Las Vegas Fashion Council hosts a Sip & Shop, with Jacinta Boutique on January 14

  • Sheldon Spotted Elk Joins the National Council of Juvenile and Family Court Judges as Program Director, Tribal Justice Partnerships

  • Las Vegas-Based Camino Verde Group Developing Mixed-Use Tech Project in Ephraim Utah

  • Hardesty Begins Term as Chief Justice, Herndon Joins the Nevada Supreme Court

  • Leverage Announces Curbside Events to Give Back to the Community

  • TSK Architects Names New Managing Principal and Design Principal

  • Greater Commercial Lending Opens Online Applications for New Round of Paycheck Protection Program, Wednesday at Noon

  • StoryBook Homes Announces Treville Court – Its First-Ever All Rental Community of New Homes

  • Reflection Bay Golf Club Expands Team with Ken Wright

  • Holland & Hart Announces Election of New Partners in 2021

  • OPD5 Extends Temporary Office Closure Due to COVID-19

  • Global Recruiting Firm MRC Names New CEO

  • Urology Specialists of Nevada Adds Three New Health Care Providers

  • 2021 Resolutions with M Spa — January Specials for CoolTone by CoolScuplting

  • Elizabeth Pearson Earns Certificate in Principles of Public Relations

  • INOVA Announces Winners and Exhibit in Community Artists’ Campaign

  • Brass Cap Development Closes on Three New Valley Properties

  • Desert Radiology Completes 25 Days of Do-Gooders Virtual Gifting Initiative, Donating to 25 Charities in 25 Days

  • Reno/Sparks Association of REALTORS® Releases December 2020 Existing Home Sales Report

  • Vegas PBS to Host Free Virtual Screening of the Zen Speaker: Breaking the Silence

  • Long-Time Silver State Schools Credit Union Volunteer Leonard Petoske Passes Away

  • Naylor & Braster Recognized in U.S. News Best Lawyers “Best Law Firms” 2021 Edition

  • Goodwill® Among Recipients of $4.2 Billion Funding by MacKenzie Scott

  • St. Jude’s Ranch for Children Begins Healing Center Project for Child Victims of Sex Trafficking with Soil Survey Donated for $1

  • Washoe County Sheriff’s Office and Donor Network West Launch Six-Day “Second Chances” Organ Donation Awareness Program for Minor Traffic Violations

  • Angela Collins Named Chief Operating Officer of Nathan Adelson Hospice; Joins NHPCO’s Quality & Standard Committee

  • NAIOP Southern Nevada Announces Newly Elected 2021 Officers and Directors

  • Immunize Nevada to Host Flu Clinic at Promise Land Community Church

  • Southern Nevada Home Prices End the Year in Record Territory

  • Dickson Commercial Group Represents Buyer of 21,781 Square Foot Medical Office Building

  • Soberlink Joins National Council of Juvenile and Family Court Judges With Corporate Sponsorship

  • Northern Nevada Community Leaders Named to NCET Board

  • Megan H. Hummel Appointed Partner of Lipson Neilson PC

  • Reno/Sparks Association of REALTORS® Installs 2021 Officers and Celebrates Annual Awards

  • Northcap Commercial Arranges Sale of 11.33 Acres of Land for $5,377,268

  • Nathan Adelson Hospice Partners with Six Leading Non-Profit Providers

  • A Plant-Based Change of Pace: Dunkin’ Starts 2021 with the Southwest Veggie Power Breakfast Sandwich

  • Vegas Helps Nonprofit Organization Launches to Facilitate Locals Helping Locals

  • Deadline for Moving Assistance Applications Extended to Jan. 15, 2021 — Move 4 Less Owners Paying for Local Moves of Families Affected by Pandemic —

  • Livestreamed Panel Discussion Will Engage Local Mental Health Experts, Community Leaders, and the PBS NewsHour Student Reporting Lab on the Topic of Youth Mental Health

  • Silver State Schools Credit Union Shares its 2020 Community Giving

  • Jewish Nevada Announces New Board Members and Presents Jewish Community Leader Awards During Virtual Event in January

  • Ava Rose Agency’s Food and Beverage Clients Raise a Glass to Welcome 2021 With New Year’s Specials and Promotions

  • Throw in the New Year With Dueling Axes at AREA15

  • Take (Extra) Charge of 2021: Dunkin’s New Extra Charged Coffee Delivers 20% More Caffeine

  • Non-Profit CORE Welcomes Two New Members to Board of Trustees

  • Non-Profit CORE Treats 70 Scholars and Families to a Drive-Thru Holiday Express

  • Short-Term Career Training is Key to Post-Pandemic Economic Recovery in Las Vegas in 2021

  • Paint Contractor Gives Children Unforgettable Christmas

  • Greater Nevada Credit Union Helps People Live Greater Through Greater Giving Donations

  • Nevada Association Services Pays First Quarter 2021 HOA Assessments for 5 Families Who Lost Their Homes in November Pinehaven Wildfire

  • “Hope for the Holidays” Presented by Hope for the City Wraps With Immersive Drive-Thru Food Pantry

  • Nevada Rural Housing Authority Receives Two Excellence Awards from the National Association of Local Housing Finance Agencies

  • Dickson Commercial Group Completes 36 Acre Land Sale in North Valleys

  • Las Vegas Real Estate Company Focuses on Neighborhoods & Communities

  • Justice Mark Gibbons to Retire from Nevada Supreme Court

  • Spencer Fane LLP Partner Ayesha Mehdi Named to American Bar Association Health Law Section Vice Chairships

  • Newly Constructed Industrial Complex Sells for $6.8 Million in Southwest Las Vegas

  • TSK Architects Promotes from Within

  • USDA Recognizes Greater Commercial Lending As #1 Business and Industry Lender in Top Commercial Lender Rankings

  • Serving our Kids Foundation Hosted Contactless Food Drive with Sponsors Clark County Medical Society Alliance, Southwest Medical, OptumCare and SOS Radio

  • Attorney Leon F. Mead II Receives Recognition for Legal Excellence for 2020 Super Lawyers® Award

  • Mendy Elliott Named Nevada Donor Network Foundation Founding Board Member

  • John Naylor Represented British Columbia Securities Commission in Landmark Decision From Nevada Supreme Court

  • Young Entrepreneur Spills Insight on Launching a Podcast

  • The Private Bank by Nevada State Bank’s High Net Worth Report Summarizes Charitable Giving Trends Impacted by TCJA

  • Application Is Now Open for the Cannabis Equity and Inclusion Community (CEICNV) NCCRFund Grant Program in Nevada

  • Adam S. Kutner, Injury Attorneys Wins “Best Accident Lawyer” in the Las Vegas Review-Journal’s “Best of Las Vegas” Reader’s Poll

  • An Outpouring of Support for Las Vegas Cyclist Memorial: Lamar Advertising Donates 68 Billboards

  • Lake Las Vegas Named #1 Southern Nevada Master Plan

  • St. Vincent’s Thrift Stores Offer Unique Gifts

  • William V. Craig, M.D. Joins Nathan Adelson Hospice in Pahrump

  • Behavioral Health NV Encourages Families to Find Substance Use Help During the Holidays

  • Project Worth Encourages Problem Gamblers to Seek Change this Holiday Season

  • JB Public Relations – Boutique Public Relations & Social Media Agency Offers Free Initial PR Crisis Communications and Consultations for Small Businesses in Las Vegas During the COVID-19 Pandemic

  • Move 4 Less Owners Provide Moving Help for Families Being Evicted, Affected by the Pandemic — Applications DUE by Dec. 31 —

  • D’Agostino’s Trattoria Offers Holiday Gift Baskets, In-Dining Specials, and Signature Festive Drink to Ring in the Season

  • MGM Resorts Selects TuffSkin Surface Protection for Leadership Program

  • Kelly LeGrow Named Nevada Donor Network Foundation Board Member

  • BRAZEN Architecture Founder Receives AIA Nevada’s First Ever “Citizen Architect” Honor

  • ‘Weekend College’ Launches at CSN – Designed for Busy Students, Programs in Business, IT, Healthcare and More Are Available

  • Faith Lutheran Middle School & High School Breaks Ground New $3.4 million Tennis Complex

  • Goettl Air Conditioning and Plumbing Looking to Hire Call Center Representatives Throughout Las Vegas

  • Trosper Public Relations Adds to Team

  • Clinician Experience Project Recognizes Southwest Medical Physician

  • Goodwill® of Southern Nevada Names New Chief Human Resources Officer

  • Dermody Properties Leases Remaining Space at LogistiCenter℠ at Speedway in North Las Vegas

  • Rita Vaswani Named Nevada Donor Network Foundation Founding Board Member

  • Nevada State Bank Wins “Best Bank” in Las Vegas Review-Journal Poll for Fourth Straight Year

  • Community Support Needed to Help Homeless Youth for the Holidays –Donate Gifts or Host a Drive–

  • SR Construction Makes Donation to St. Jude’s Ranch for Children

  • Colliers Las Vegas Broker Recognized as Broker of the Year by Prestigious Industry Society

  • Fernley Community Foundation Celebrates Progress with Polaris Grant, New Senior Center Opening

  • Vegas PBS Selects Mary Mazur as New President and General Manager

  • Silver State Schools Credit Union Receives Gold Award for “Best Credit Union” with the 2020 Best of Las Vegas Award

  • Blume Kitchen & Cocktails Plans Pop-up Dinner Featuring Chef Lanny Chin Mon., Jan 11

  • Coral Academy Awarded Gold in Four Categories for Best of Las Vegas Awards

  • NAWBO Southern Nevada Awards Henderson Councilwoman Michelle Romero With Corporate & Government Services Award

  • Nevada State College’s Early Childhood Education Center to Open Fall 2021 Within the New $61.8m School of Education Building



 
Submit Your News & PR | Subscribe
Submit Your News & PR

Business Connection

Business Connection Portal

Log In Sign Up

Business Connection Portal

Log In Sign Up

Nevada Business Calendar

  • Ely Film Festival 2021
    March 12, 2021 12:00 pm

    Location: 501 E Aultman St, Ely, NV 89301, USA

    More details...
  • Ely Film Festival 2021
    March 12, 2021 12:00 pm

    Location: 501 E Aultman St, Ely, NV 89301, USA

    More details...
View Full Calendar ►

Nevada Business Directory

Featured Businesses
Find a Nevada-Based Business Submit Your Business Subscribe to the Nevada News & PR Wire

Nevada Industries

Architects & Engineers
Arts & Culture
Banking
Commercial Real Estate
Construction
Credit Unions
Economic Development
Education
Financial Management
Healthcare
Human Resources
Insurance
Law
Manufacturing
Marketing
Media
Mining
Philanthropy
Residential Real Estate
Rural Nevada
Sports
Tax Planning and Accounting
Technology
Telecom
Tourism
Transportation
Utilities

Footer

Subscriptions

  • Print Subscription
  • Mobile App
  • E-mail Subscription

Editorial

  • Features
  • Departments
  • Events

Advertising

  • Advertise
  • Submission Requirements

Connect

  • Contact
  • LinkedIn
  • Facebook
  • Twitter

Copyright © 2020, Business Link LLC dba Nevada Business Magazine and Nevada Business Journal. Privacy Policy | Terms & Conditions
Nevada Web Design services by Nevada Central Media using Genesis Framework by StudioPress