Incentives tied to craft worker compensation and apprenticeship on clean energy projects won't require developers to have project labor agreements, says the U.S. Treasury Dept.
Construction unions hailed the new rule, but some contractor groups have strongly criticized it, with the Associated Builders and Contractors already planning a legal challenge.
Much anticipated US Treasury Dept. release adds detail on Inflation Reduction Act wage and training standards to accelerate clean energy project incentives, but some issues and potential conflicts have yet to be addressed, says industry.
Contractor Bulk Storage Inc. must pay back wages to employees, plus penalties, for not meeting state-required compensation rules on public sector projects.
Officials accuse Bridgeview, Ill.-based Drive Construction of setting up two layers of shell companies and paying workers in cash to avoid traceability.
Arguments about prevailing wages have not changed much since the 1980s, the last time the U.S. government changed methods under the 1931 Davis-Bacon Act to determine a prevailing wage on most construction projects with federal funding.
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