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HB 2541

Salaries and Benefits - As introduced, expresses the public policy that the prevailing wage rate be paid to workers on non-state contracts for construction projects on public highways; makes other revisions to the Prevailing Wage Act for State Highway Construction Projects. - Amends TCA Title 12, Chapter 4, Part 4.

114th Regular Session (2025-2026) Introduced by William Lamberth

HB 2541 expands Tennessee's prevailing wage requirements to private contractors on public highway construction projects, potentially increasing labor costs and project expenses.

Signed by Senate Speaker
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Bill Summary · HB 2541

Legislative bill overview

HB 2541 would extend prevailing wage requirements to non-state contractors working on public highway construction projects in Tennessee, not just state-employed workers. The bill amends the existing Prevailing Wage Act for State Highway Construction Projects to broaden its scope and potentially revise related regulations.

Why is this important

Prevailing wage laws significantly affect labor costs on public construction projects, typically requiring wages above market rates. This expansion could increase project costs, worker compensation, or contractor expenses depending on implementation—affecting both state budgets and the construction industry's competitiveness.

Potential points of contention

  • Cost implications: Extending prevailing wage requirements to private contractors may increase highway project costs, potentially reducing the number of projects the state can fund or raising taxpayer burden
  • Labor market effects: Supporters argue this protects worker standards; critics contend it may reduce job availability or competitiveness for contractors, particularly smaller firms
  • Scope ambiguity: The bill's language about "non-state contracts" and other "revisions" lacks detail in this summary, making it unclear exactly which contractors and projects would be affected

Compiled from official sources — confirm details with the bill’s official record.

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