Courts taking critical look at prevailing-wage standards — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

Courts taking critical look at prevailing-wage standards

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in Employment Law,Human Resources

Are you in an industry affected by Illinois’ prevailing-wage laws? If so, note that the courts are beginning to recognize cracks in the way the Illinois Department of Labor sets those wages.

Recent case:
Beary Landscaping sued the Illinois Department of Labor (IDOL), alleging that it illegally delegated the setting of prevailing wages for the landscaping industry by using unverified figures IDOL got from unions. Essentially, the company alleged that it was being denied due process because the IDOL improperly delegated its job to unions without verifying that the information was correct.

Now a court has given the lawsuit the go-ahead. If Beary wins, it may mean that companies that must pay prevailing wages will pay based on a more accurate (and presumably lower) figure than suggested by labor unions. (Beary Landscaping v. Shannon, No. 05-C-5697, ND IL, 2008)

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