Picture this: Nevada’s working hard to build new schools, fix crumbling roads, and expand high-speed internet. But a new bill, AB 213, could slam the brakes on these projects by jacking up costs and burying businesses in red tape. This proposal wants to slap high prevailing wage rules on workers who craft custom materials for public projects—even if they never step near a construction site. Sounds fair? Think again. Here’s why AB 213 could spell trouble for Nevada’s economy, taxpayers, and infrastructure dreams.
What is AB 213?
AB 213 aims to apply prevailing wage laws—which mandate higher-than-market wages for workers on public works projects—to off-site workers in specialized manufacturing. These workers create custom materials, like unique fixtures or components, that might be used in public projects like schools or highways. Currently, prevailing wage laws mainly cover on-site construction labor, but AB 213 would extend these rules to off-site fabrication shops, regardless of whether the workers are directly involved in the construction process.
Why This is a Problem for Nevada
1. Skyrocketing Costs for Taxpayers
Nevada’s prevailing wage rates are already among the highest in the nation, averaging 45% higher than market wages. These rates, set by the Nevada Labor Commissioner through a flawed survey methodology, have cost taxpayers dearly. For example, between 2009 and 2010, inflated prevailing wages added an extra $1 billion to public project costs.
AB 213 would make this worse by applying these high wage requirements to off-site workers in manufacturing shops. For instance, in 2011, an alarm installer in Clark County earned $55.95 per hour under prevailing wage laws, while the market rate for the same job was just $24.59 per hour. Extending these inflated wages to more industries, like custom fabrication, will drive up costs for public projects, forcing taxpayers to foot the bill. The costs would also be passed onto the businesses and contractors purchasing custom supplies, effectively turning Nevadan businesses to undesiable and expensive competitors. With cheaper production alternatives available elsewhere, e.g. Mexico, Utah, etc., businesses in the Silver State will quickly lose their competitive advantage.
2. Hurting Infrastructure Projects
Nevada is already grappling with inflationary pressures and supply chain challenges that make public works projects—like roads, schools, and hospitals—expensive and difficult to complete on time. By mandating union-level wages for off-site fabrication, AB 213 would increase the cost of materials and components, further straining project budgets. This could lead to delays, canceled projects, or higher taxes to cover the added expenses.
3. Unworkable Compliance Nightmare
Enforcing AB 213 would be a logistical mess. Imagine a fabrication shop where a worker spends 12 minutes crafting a part for a private building and 15 minutes on a component for a public project. Tracking how many hours each worker spends on public works-related tasks is nearly impossible. Businesses would face a complex compliance burden, requiring them to overhaul their accounting and time-tracking systems. This added red tape would hit small businesses hardest, potentially driving some out of the market.
A Better Way Forward
If Nevada wants to ensure fair pay and quality jobs, piling on more regulations isn’t the answer. Instead, the state should focus on open and competitive bidding for public projects. Letting the free market set wages—rather than relying on outdated, inflated formulas—would keep costs down while ensuring workers are paid fairly based on their skills and the job’s demands. This approach would save taxpayer money, streamline projects, and support businesses without suffocating them with red tape.
Conclusion: Say No to AB 213
AB 213 is a misguided bill that would hurt Nevada more than it helps. By driving up costs, complicating compliance, and threatening infrastructure projects, it places an unfair burden on taxpayers and businesses alike. Nevada deserves better. Policymakers should reject AB 213 and focus on solutions that promote efficiency, fairness, and economic growth.
