What is a split rate?
- A split rate occurs when the same worker is paid two different rates for the same job on the same day.
- Example - A plumber is paid the PA prevailing plumber’s wage rate for six hours but a lower wage rate for two hours.
Why do some contractors circumvent the prevailing wage law by paying split rates?
- Some contractors will do this to gain a ‘competitive edge’ by underpaying workers to lower their bids as most public construction projects are awarded to the lowest bidder.
On March 11, 2022, Senators Tommy Tomlinson (R-Bucks) and Tina Tartaglione (D- Philadelphia) introduced Pennsylvania Senate Bill 1142. SB 1142 would prohibit the practice of ‘split rates’ and restore the intent and integrity of the law to ensure that workers are paid appropriately on publicly funded projects.
Please utilize this site to reach out to your local legislators and ask them to support SB 1142.