House to Act on Prevailing Wage

With a nod towards organized labor, the Iowa House of Representatives will take action today on a bill that would require the payment of “prevailing wage” on certain construction projects in the state (HF 333). The bill is expected to be taken up for debate at noon today, but will likely be delayed. Critics cite the potential for property tax increases to pay for the expected 15 to 20 percent cost increases they fear the bill will drive. Union supporters argue that the bill would result in better construction and job safety. If House Democrats prevail, the bill is expected to pass the Senate quickly and be sent to Governor Culver who has pushed aggressively for passage of the measure.

The House also acted on an additional health care mandate proposed in HF 311 that would require health insurance policies in the state to provide coverage for prosthetic devices. A coalition led by the National Federation of Independent Business and the Association of Business and Industry conducted a news conference this week to attempt to highlight the negative impact of health care mandates. In the Senate, the mandate issue is being handled by Senator Tom Rielly (D-Oskaloosa) who has raised concerns about the cost of additional mandates and their affect on the ability of businesses to afford the increases.

A new coalition of businesses and business organizations has been organized to resist passage of a Senate Labor Committee bill commonly referred to as “doctor shopping.” Senate File 155 is on the Senate Calendar, and would completely reverse our current system of selecting medical care for workers compensation cases by allowing the employee to use any doctor. Labor groups support the change while businesses are predicting an immediate 15 to 20 percent workers compensation rate increase if the bill is signed into law.