DOVER, DE — The Delaware Department of Labor has launched its annual prevailing wage survey for state-funded construction projects, a move that comes amid ongoing political discussions about the impact of these wages on the state’s economy.
On December 20, 2023, the Department mailed out more than 4500 survey forms to contractors and various stakeholders. These forms, which need to be returned postmarked no later than February 8, 2024, will provide crucial data for the calculation of the Delaware Prevailing Wage Rates.
The prevailing wage rate, defined as the average wage paid to similarly employed workers in the requested occupation in the area of intended employment, is a contentious topic. It’s been at the center of numerous debates concerning labor rights, economic growth, and the cost of state-funded construction projects.
Proponents argue that prevailing wage laws ensure fair pay for workers, protect them from being undercut by low-bidding contractors, and contribute to a skilled and stable workforce. They contend that these laws have a negligible impact on project costs and can even lead to higher-quality construction due to the involvement of better-trained workers.
Critics, however, assert that these laws inflate project costs, burden taxpayers, and can discourage competition, particularly from smaller businesses that struggle to match these wage rates. They advocate for market-based wages to control costs and promote competitive bidding.
By March 15, 2024, the Department will publish its annual “Prevailing Wage Determination,” which will be valid for a year. This publication is eagerly awaited by all parties involved in the debate as it sets the benchmark for wages in the construction industry across the state.
The Department is also encouraging participants to submit their information electronically, a move that aligns with the broader trend toward digitalization and efficiency in governmental processes.
As Delaware continues to balance the needs of its workers with those of its economy, the prevailing wage survey serves as a critical tool to inform decision-making. This annual process, though often overlooked, plays a pivotal role in shaping the state’s labor market and construction industry, making it a key focal point in the broader discussion about Delaware’s economic future.
For copies of survey instructions and forms, visit https://ollea.delawareworks.com.
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