Iowa panel backs wage bill

Associated Press - February 8, 2010 6:14 PM ET

DES MOINES, Iowa (AP) - A House committee has approved a measure setting the wage paid to workers on some public projects, but cities, counties and schools could opt out of the effort.

The topic, known as the prevailing wage, is a top priority of organized labor and sparked a bitter fight in last year's session, when lawmakers narrowly defeated a measure. The proposal remains controversial, although supporters say the exemptions they've carved out should make it more popular.

Critics have argued that prevailing wage laws increase costs of public projects by requiring higher wages. Backers say it ensures that workers are paid a living wage and prevents out-of-state contractors from hiring low-wage workers who drive down pay for everyone.

A subcommittee approved the measure Monday, then the full Labor Committee narrowly approved it in the afternoon.