Prevailing wage controversy roils immigration reform debate

Across the nation–from the Pacific northwest to Kansas to Tennessee–legislative bills introduced to repeal the Federal prevailing wage law (a.k.a. Davis-Bacon Act of 1931) are under hot debate. For roofing companies, the repeal of prevailing wage regulation is an issue that has become layered with immigration reform laws currently moving through Congress. Originally, the laws were enacted as a mechanism to allow outside workers to enter a state without, as a result, undercutting local companies on labor rates. Hence, it fits naturally into negotiations for creating a guest worker program for low-wage workers. But the counterargument is that the proposal could raise residential roofing rates: “Currently, ‘prevailing wage’ laws are only enforced for government-contract work. The deal announced by business and labor, however, would extend the practice into many aspects of the private economy. The biggest impact would likely be in residential construction, which would see a dramatic increase in labor costs.” This presents a double-edged sword for roofers. Higher labor costs could be a boon, or on the other hand, a business dampener, just as it is beginning to come back from near-death.