State Rep. Kristina Roegner recently wrote about Ohio's Prevailing Wage Law, (May 10, "Reforming Ohio's prevailing wage law.) She does not understand the purpose of the law.
Often times in construction, contractors do not pay their workers legally or fairly. Instead of hiring a person as an employee, they hire them as a sub-contractor. This means they are technically self-employed.
When this happens, the person is paid any lower wage determined by the contractor.
Or even worse, they are paid cash, under the table. It also means that the main contractor is not witholding any payroll taxes or paying into workers' compensation, in case the worker becomes injured at work. Typically that person also does not claim this income on federal, state or local taxes. All state agencies lose revenue. This is why Prevailing Wage should not be reformed.
Roegner also states that some companies stop bidding on Prevailing Wage jobs because the process is so bureaucratic. If companies that use this scam were to bid on a job and win the bid, their illegal payment scheme would be discovered.
Finally, she writes that wages are inflated because they include "fringe" benefits.
I am sure she gets many of the same fringe benefits that she wrote about while she serves as our state representative.
Dustin Basmagy, Twinsburg