State and local government entities in South Carolina are now barred from using project labor agreements in construction contracts, thanks to legislation enacted on May 22, and signed into law by Gov. Nikki Haley on June 7. PLAs are essentially pre-hire agreements between unions and employers that specify that employees used on a specific project will be union-represented. They are used in the construction industry on many publicly funded projects. Under the South Carolina law, government entities will be barred from requiring bidders, contractors, or subcontractors to enter intoagreements with labor organizations. The legislation will also prohibit favoritism, grants, or tax relief based on use of project labor agreements.

Similar legislation has been approved by the North Carolina House of Representatives and is awaiting a vote in the state Senate.