Prevailing Wage Law: Lawsuit Filed in Dane County

Apparently, Associated Builders and Contractors of Wisconsin, Inc., (“ABC”) filed a lawsuit seeking an injunction Friday, January 29, 2010, in Dane County Circuit Court to prevent the implementation of the new changes to the Prevailing Wage law requiring contractors to electronically file extensive payroll data when working on public works projects. According to ABC’s attorneys, Michael Best and Friederich, the Wisconsin Department of Workforce Development (“DWD”) has agreed to put a temporary hold on penalizing contractors who do not comply with the reporting requirements of the new law. If the Michael Best report is accurate, it appears that DWD will not be assessing penalties for not reporting, at least until the injunction is either granted or denied. A hearing is scheduled on April 19, 2010. Keep in mind that this does NOT change the law and contractors are still expected to comply with the regulations during the course of the trial. The bottom line for municipalities is that they should assume the law is valid as it stands and expect their contractors to comply with all aspects of the prevailing wage law.