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Indiana Legislature Repeals Indiana’s Common Construction Wage Statute

In the most recent legislative session, the Indiana Legislature repealed the common construction wage statute found at Indiana Code 5-16-7. The common construction wage statute continues to apply to any public works contract awarded before July 1, 2015. For any public works contract awarded on or after July 1, 2015, the common construction wage statute no longer applies.

Pursuant to Indiana Code 5-16-7.2-5, the Indiana Legislature has specified that a public agency may not establish, mandate or otherwise require a wage schedule or wage scale for public works projects. This new rule applies unless federal law provides otherwise.

It remains to be seen what the impact of the repeal of Indiana’s common construction wage statute will be with respect to Indiana public works projects. Non-union contractors in the State of Indiana now may compete for Indiana public works projects while paying wages that are potentially less than those set pursuant to the terms of the repealed common construction wage statute.