Prevailing wage laws may be the solution to the labor shortage in the service industry

Published 5 Min Read

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In a national labor shortage, how do employers ensure they can attract and retain the best talent? While there is something to be said for benefits and upskilling, at its core the answer may be even more obvious: pay workers a living wage.

That is where prevailing wage laws come into play. Prevailing wage laws are local minimum wages for state-contracted service and construction workers based on payroll records in that area. Research from the Illinois Economic Policy Institute and the University of Illinois Urbana-Champaign has found that service contract prevailing wage laws can mean the difference between workers like custodians falling above or below the poverty line.

Deanna Cuadra
Senior Reporter

Deanna Cuadra is a senior reporter at Employee Benefit News. Her work covers healthcare, U.S. policy and reform, challenges faced by women and parents in the workplace and innovation in work culture … Read full bio


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