Buried on page 200 of Connecticut’s nearly 700-page state budget is a provision lawmakers couldn’t pass on its own merit: a union-backed expansion of prevailing wage laws that forces small fabrication shops across Connecticut to pay inflated union-level wages for off-site work.
The original bill (S.B. 1370) was amended in a way that forced it to be transferred to the Appropriations Committee and ultimately never received a vote in either chamber, following strong opposition from business groups, contractors, and anyone concerned about rising construction costs. But instead of letting it die, lawmakers quietly slipped the language into the state budget at the last minute—bypassing public debate and scrutiny.
Prevailing wage laws require contractors on public construction projects to pay workers wages and benefits comparable to what is “prevailing” for similar work in a given area — typically based on union wage scales. They are often described as a way to ensure fair pay, but in practice, they lock in higher labor costs, inflate public project budgets, and box out non-union contractors.
Under the new law, if a shop in Torrington fabricates piping for a school renovation in Stamford, the wages paid to those shop workers must match the on-site prevailing wage in Stamford. However, that’s not how prevailing wage laws have traditionally worked. The rule applies even if the fabrication work is done off-site, in a controlled facility, with no boots ever touching the construction site.
Supporters like AFL-CIO President Ed Hawthorne framed the change in written testimony as a matter of “equity,” claiming it would create a level playing field between union and non-union shops. But critics say that’s nonsense.
“This will drastically increase the overall cost of doing a job,” wrote Paul Amarone of the Connecticut Business and Industry Association (CBIA) in his testimony. He further noted that it will make state and municipal construction more expensive and could push small contractors to outsource the work to out-of-state vendors who aren’t subject to the rule.
Christopher Fryxell, President of Associated Builders and Contractors of Connecticut, said in a statement to Yankee Institute on Tuesday (June 3), “Proponents couldn’t garner enough support for this bill during legislative session so they had to shove it in a 700-page budget bill, where it doesn’t belong, to slip it into law without proper votes on the merits of the policy. This is a gift to special interest at the expense of taxpayers.”
He continued, “This bill isn’t leveling the playing field, it’s moving the playing field outside of Connecticut,” adding that the “biggest beneficiaries” will be out-of-state businesses.
Fryxell argued that, because of the new legislation, Connecticut will be faced with a difficult dilemma: cut their workforce, relocate out of state, or shut down. Moreover, the effects on the local economy, job creation, and supply chain “will be disastrous.”
“Businesses have invested in fabrication shops where they can perform work in a safe, controlled and efficient manner away from the unpredictability of a jobsite,” Fryxell said. “These homegrown facilities should be embraced and encouraged for their ingenuity.”
Though the law has been newly enacted, Fryxell has already received distressing messages from contractors, asking him about its implications, as well as expressing their considerations of establishing a facility outside of Connecticut.
In the end, this bill punishes the very shops that have invested in staying local — and the people they employ. This is the kind of policy lawmakers knew wouldn’t hold up to public scrutiny. That’s why they didn’t defend it openly. They buried it in the budget and hoped no one would notice.
But taxpayers will notice when fewer projects get done and the price tag keeps climbing. Contractors will notice when they’re forced to move operations across state lines. And Connecticut’s working-class fabricators will notice when their jobs vanish with them.
This isn’t fairness. It isn’t equity. It’s a straight-up handout — and the only ones celebrating are the people cashing in on it.
