Contractors Working On Prevailing Wage Projects across state lines should take note of the following precedent setting Federal Court Ruling.A Federal Judge ruled that Delaware Department of Labor cannot favor in state contractors on prevailing wage projects by allowing them pay reduced wage rates to their apprentices while denying out-of-state contractors the same right.
Wednesday’s ruling came in a lawsuit by Pennsylvania-based Tri-M Group, an Electrical Subcontractor for construction of the state veterans home in Milford Delaware.
Delawares apprentices are paid a percentage of the Journyman rate based upon experience as is the case in New Jersey.
Delawares DOL officials refused to recognize Tri-M’s Pennsylvania-registered apprentices and ordered the company to pay them Journeyman rates for wages and benefits.
The judge granted summary judgment to Tri-M Group, saying Delaware’s position amounts to economic protectionism that discriminates against out-of-state businesses.
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