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NFIB, June 23, 2021 — Ohio House Commerce & Labor Committee, House Bill 146

Summary

A letter dated June 23, 2021 from the Ohio Legislative Director of NFIB to Representative Dick Stein, Chair of the Ohio House Commerce & Labor Committee, supporting House Bill 146 on behalf of nearly 22,000 members. The bill lets local governments and state higher education institutions decide whether to require prevailing wage on certain public improvement projects and raises the threshold for new vertical construction projects to $500,000. The letter says a typical NFIB member in Ohio employs 20 or fewer and does less than $2 million in annual receipts, that prevailing wage requirements keep some small businesses from bidding, and that members support the market, not the government, setting compensation.

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10 West Broad Street, Suite 2450
Columbus, OH 43215

614-221-4107
Fax 614-221-8677
www.NFIB.com/OH

June 23, 2021

Representative Dick Stein

Chair, Ohio House Commerce & Labor Committee
77 South High Street, 12" Floor

Columbus, OH 43215

Dear Chairman Stein:

| am writing on behalf of our nearly 22,000 governing members to lend support for
House Bill 146, This legislation gives the opportunity for local governments and
state higher education institutions to decide whether to require prevailing wage on
certain public improvement projects. House Bill 146 also increases the threshold
for new vertical construction projects to $500,000 before prevailing wage is
mandated. We appreciate Representatives Riedel and Manchester for beginning
the dialogue on this public policy issue.

By way of background, a typical NFIB member in Ohio employs 20 or fewer and
does less than $2 million in annual receipts. Our members come from all industry
types and each of the 88 counties. Our members range in size from sole
proprietors to large operations employing hundreds.

House Bill 146 empowers local governments and state higher education
institutions, charged with being good stewards of taxpayer dollars, to make
decisions on how to progress on public improvement projects. House Bill 146
allows them to proactively decide if it is appropriate to require prevailing wage as a
condition of bidding a project. Unfortunately, there are small businesses that do
not participate in the bidding process because of prevailing wage requirements.
NFIB members have long indicated their opposition to all levels of government
artificially setting wage and benefit requirements especially when these
requirements use their own tax dollars. Prevailing wage rates tend to reflect the
wages and benefits offered by various organized labor groups in a geographic
region. What this allows is businesses that have a higher cost of labor and benefits
to be competitive in the bidding process where they otherwise might not. Our
members support the market setting compensation, not the government.

Additionally, during previous debates on prevailing wage, we have heard
elimination, or increasing thresholds to trigger prevailing wage will result in a race
to the bottom for quality of work while also eschewing safety. The belief that bids
submitted without prevailing wage are incapable of achieving such results is an
affront to those companies and especially their workers. We believe this talking
point can be dispelled by looking at the success of numerous projects that are not
prevailing wage, including many school facilities. Further, there are government
entities, like the Occupational Safety & Health Administration (OSHA) that enforce
safety requirements, protecting workers and the integrity of their workmanship.

We support the opportunities that may be afforded non-prevailing wage companies
through House Bill 146. Our members have consistently supported the elimination
of prevailing wage and although this bill does not do that, it does begin the dialogue
on the appropriateness of government dictating wages and benefits on public
improvement projects.

Thank you for your consideration,

Sincerely,

Christ er J. Ferruso
Ohio Legislative Director


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