Construction contractors responded that such a requirement would drive up the cost of building in Ohio, effectively putting the brakes on hundreds of projects.
The two sides made their cases to the Ohio Supreme Court in a dispute over whether a Port Clinton company subjected itself to the state's prevailing-wage law by accepting two government loans to build a showroom.
The company, Fellhauer Mechanical Systems, cobbled together a mix of private financing, a $305,000 loan from the Ohio Department of Development and a $36,750 loan from a program administered by Ottawa County. The money, totaling about $695,000, allowed Fellhauer to build an audio-visual-products showroom in 2006.
As the project began, the Northwestern Ohio Building and Construction Trades Council obtained a court injunction to block the work because Fellhauer was not paying its construction workers union-scale wages.