Businessweek reports that the Delaware Attorney General’s Office is planning to appeal the much discussed recent Third Circuit ruling that Delaware cannot allow in-state contractors on public works projects to pay reduced wage rates to their apprentices while denying out-of-state contractors the same right.
Pennsylvania-based Tri-M Group, an electrical subcontractor on a Delaware state veterans home project, challenged, on interstate commerce grounds, a Delaware prevailing wage rate regulation which essentially permitted Delaware-based contractors to pay a reduced wage rate to apprentices. Both the District Court and the Third Circuit ruled that the Delaware regulation discriminated against out-of-state contractors and thus violated the interstate commerce clause.
Obviously, this case is a victory for all contractors that practice in multiple states. We will keep an eye out for whether the Supreme Court grants cert for this case. If it does, given the current makeup of the Court, it would be hard to see the Third Circuit’s ruling being overturned.
Wally Zimolong
Wally represents contractors (and subcontractors) and developers. His clients build and develop residential, commercial, and industrial properties nationwide. Wally enjoys working with the owners of the businesses he represents because they tend to be entrepreneurs and all around interesting people.
