Litigation Associate, Fran Notarianni authored this article in The Legal Intelligencer on the Pennsylvania Supreme Court’s decision in PSP NE v. Pennsylvania Prevailing Wage Appeals Board, which broadened the analysis that courts undertake when deciding whether construction under a pre-construction lease is subject to Pennsylvania’s Prevailing Wage Act (PWA). The article explains how previously the courts were mainly focused on the allocation of financial risk to decide whether public funds paid for a project; however, the recent decision encourages the courts to evaluate the totality of the circumstances. Fran further explains that under the new framework, courts may consider factors such as the lease length, government involvement in construction, whether the facility serves public or private purposes, whether lease payments cover construction costs, whether the lease structure appears designed to avoid prevailing wage requirements, and the allocation of financial risk. The decision will likely make it more difficult for developers to disguise construction contracts as lease agreements to avoid the PWA and will bring more public construction projects within prevailing wage requirements.
To read the full article, click here.
