SB 241 — AN ACT TO AMEND TITLE 29 OF THE DELAWARE CODE RELATING TO PROJECT LABOR AGREEMENTS.

Summary

This Act requires that a contract advertised after September 30, 2026, relating to a public works project (project) with an aggregate cost of $5 million or more must include a project labor agreement with the Delaware Building and Construction Trades Council unless the project receives federal funding, the project is for highway construction, or there was only 1 bid for the craft under the contract. A project labor agreement is a type of collective bargaining agreement in the construction industry that is generally negotiated before construction begins. Project labor agreements are intended to provide a legally binding and enforceable contract primarily related to labor conditions and labor-management relations.

Bill Text

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This bill mandates that contracts for public works projects costing $5 million or more include project labor agreements, with certain exceptions, starting from September 30, 2026.

• § 6902

  “Project labor agreement” means a form of pre-hire collective bargaining agreement covering terms and conditions of a specific project. “Project labor agreement” includes community workforce agreements.

  This adds a definition for 'project labor agreement' in the Delaware Code.

• § 6960B

  If a public works project under this chapter has an aggregate cost of $5 million or more, a contract relating to that public works project must include a project labor agreement with the Delaware Building and Construction Trades Council unless any of the following apply: The public works project receives federal funding; The public works project is for highway construction or reconstruction; There was only 1 bid for the craft under the contract.

  This establishes requirements for project labor agreements in contracts for large public works projects.

• § 6960B

  A project labor agreement negotiated under this section is binding on all contractors and subcontractors working on that public works project.

  This ensures that all contractors and subcontractors on the project must adhere to the project labor agreement.

• § 6960B

  A project labor agreement must include all of the following: a. That the provisions of the project labor agreement apply as follows: 1. To work done at construction sites of the public works project and do not apply to work done outside of those sites unless paragraph (c)(1)a.2. of this section applies. 2. To custom fabrication work done for the public works project, regardless of where that work is performed.

  This specifies the application of the project labor agreement to types of work related to the public works project.

• § 6960B

  If a union trust fund covered by the terms and conditions of the project labor agreement has not adopted the building and construction industry exemption authorized under the Employee Retirement Income Security Act of 1974, 29 U.S.C. § 1383(b), the signatory employers are not obligated to hire employees covered by that fund.

  This allows flexibility in hiring for contractors based on union trust fund conditions.

• § 6960B

  Effective, immediate, and mutually binding procedures for resolving jurisdictional and labor disputes arising before the completion of the work.

  This mandates dispute resolution procedures within project labor agreements.

• § 6960B

  Guarantees against strikes, lockouts, or other similar actions.

  This provides protections against work stoppages in project labor agreements.

• § 6960B

  A project labor agreement may include provisions that do any of the following: a. Permit contractors and subcontractors working on the public works project to retain a percentage of their current workforce.

  This allows retention of existing workers in project labor agreements.

• § 6960B

  Provide that the successful bidder, and any subcontractor of the bidder, are not a party to a labor agreement with the labor organization other than for the public works project covered by that project labor agreement.

  This clarifies that successful bidders and their subcontractors may not have other labor agreements that interfere with the project labor agreement.

• § 6960B

  Section 6960B of Title 29 applies to public works contracts advertised after September 30, 2026.

  This sets a start date for the applicability of these project labor agreement requirements.

Action History

1. March 12, 2026

   Assigned to Finance Committee in Senate

2. March 11, 2026

   Reported Out of Committee (Labor) in Senate with 4 Favorable

3. February 26, 2026

   Introduced and Assigned to Labor Committee in Senate

Sponsors

• Eric Morrison · Primary
• Franklin D. Cooke · Primary
• Ray Seigfried · Primary
• Marie Pinkney · Primary
• Spiros Mantzavinos · Primary
• Claire Snyder-Hall · Primary
• Brian Pettyjohn · Primary
• Edward S. Osienski · Primary
• Bryan Townsend · Primary
• John "Jack" Walsh · Primary

Subjects