Sunday, September 19, 2010

Court OKs Prevailing Wage Requirement Applied To Religious Group's State Assisted Project

In McKinley Foundation at the University of Illinois v. Illinois Department of Labor, (IL App., Sept. 10, 2010), an Illinois appellate court held that applying the state's Prevailing Wage Act to construction of student housing by a foundation functioning as as Presbyterian ministry for college students does not violate the Establishment Clause. The housing was supported in part by tax exempt bonds issued by the Illinois Finance Authority. Classifying it as a "public body" for purposes of that Act does not create Establishment Clause problems.