Missouri House Bill 34, which became law on July 15, changes the way prevailing wage rates are determined in the state by taking into consideration both union and nonunion wages and allowing the rates to be calculated by county.

The bill was introduced because nearly 70 percent of Missouri’s smaller counties do not have wages reported, which means the wage rate was set by collective bargaining agreements. House Bill 34 changes the prevailing wage determination process to more accurately reflect wages by dividing the surveys by union and nonunion in less populated counties and basing the prevailing wage rate on the group that reports the most work hours. If no surveys are returned, the law allows the previous year’s wages to be used.

Missouri is the second state this year to enact major changes to their prevailing wage process.  In April, Tennessee repealed their prevailing wage requirement for vertical construction projects.