Does State ‘Prevailing Wage’ Law Apply to Private Development Partially Funded by Government Grants?
State of Ohio ex rel. Northwestern Ohio Building & Construction Trades Council et al. v. Ottawa County Improvement Corp. et al., Case no. 2008-1069 6th District Court of Appeals (Ottawa County) ISSUE: Ohio Revised Code Chapter 4115, referred to as the state’s “Prevailing Wage Law,” requires that workers on government construction projects must be paid at the prevailing wage for local union workers doing similar jobs. In this case, the Court is asked to determine whether the prevailing wage law applies to a private company’s purchase and renovation of its previously leased headquarters building when that project is partially funded by loans from a federally funded Community Development Block Grant and from a County Improvement Corporation funded by county revenues. BACKGROUND: Fellhauer Mechanical Systems is a private, for-profit company in Ottawa County that provides plumbing, heating and electrical services and also sells audio-visual and security systems. The company, which operated
