BILL REQ. #:  H-2040.1 

Read first time 02/24/2005.   Referred to Committee on Commerce & Labor.

     AN ACT Relating to providing living wages on public contracts on behalf of or for the house of representatives and the senate; adding a new chapter to Title 44 RCW; providing an effective date; and declaring an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION.  Sec. 1   FINDINGS. The legislature finds that the state annually awards contracts to private contractors to provide services on behalf of or for the house of representatives and the senate, and that such expenditures should be spent in a manner that promotes the creation of jobs that allow residents to support themselves and their families with dignity. The legislature further finds that the present federal and state minimum wage rates generate income at a level below the amount required to support a family at a basic level, and that jobs that do not pay living wages result in families who have a greater need for social services provided by the state and paid for by state taxpayers. The payment of adequate wages to workers for those hours performing services on behalf of or for the house of representatives and the senate will promote stability and reduced turnover, resulting in a higher quality of service.

NEW SECTION.  Sec. 2   DEFINITIONS. The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Contract" means public works contracts, personal services contracts, and purchasing contracts for goods and services entered into, renewed, or extended by the state on behalf of or for the house of representatives and the senate on or after July 1, 2005.
     (2) "Contractor" means any person, firm, or corporation that, in the pursuit of an independent business, undertakes a contract.
     (3) "Department" means the department of labor and industries.
     (4) "Employee" has the meaning provided in RCW 49.46.010. In addition to individuals not included in the definition of "employee" under RCW 49.46.010, "employee" shall not include: (a) An individual enrolled in a state-approved apprenticeship training program; (b) an individual in a work study position, internship, or who is in a position that requires student status as a prerequisite to being employed in that position; and (c) an individual subject to a bona fide collective bargaining agreement.
     (5) "Subcontractor" means any person, firm, or corporation that, in the pursuit of an independent business, undertakes a contract with another person, firm, or corporation who holds a contract.

NEW SECTION.  Sec. 3   LIVING WAGE REQUIREMENT. All contracts and any subcontracts under these contracts shall require the following:
     (1) The contractor and any subcontractors must pay each employee performing work under the contract the living wage rate under this chapter or, if applicable, the prevailing wage rate under chapter 39.12 RCW, whichever is higher;
     (2) Within ten days of a request by the house of representatives or the senate, the contractor and any subcontractors must provide satisfactory proof of compliance with the living wage requirement in the form of payroll records, benefit records, or other appropriate evidence;
     (3) If the contractor or any subcontractor violates the living wage requirement, the contractor or subcontractor must provide proof of compliance, including the payment of any back wages owed, within thirty days. If the contractor or subcontractor remains out of compliance after thirty days, the state may terminate the contract and otherwise pursue contractual remedies for breach of contract;
     (4) If a contractor or subcontractor continues to violate or subsequently violates the living wage requirement, the state may terminate all contracts with the contractor or subcontractor on behalf of or for the house of representatives and the senate, and the contractor or subcontractor shall be prohibited from contracting with the state on behalf of or for the house of representatives or the senate for two years; and
     (5) If a contractor or subcontractor retaliates or discriminates against an employee in his or her terms and conditions of employment for reporting a possible violation of the living wage requirement to the chief clerk of the house of representatives or the secretary of the senate, the state may terminate all contracts with the contractor or subcontractor on behalf of or for the house of representatives and the senate, and the contractor or subcontractor shall be prohibited from contracting with the state on behalf of or for either the house of representatives or the senate for two years.

NEW SECTION.  Sec. 4   LIVING WAGE RATE. (1) Until January 1, 2006, every contractor and subcontractor shall pay to each of his or her employees who has reached the age of eighteen years a living wage rate of not less than ten dollars per hour if health benefits are paid for in whole or in substantial part by the contractor or subcontractor, or eleven dollars and fifty cents per hour if health benefits are not so provided.
     (2)(a) Beginning January 1, 2006, and each following January 1st as set forth in (b) of this subsection, every contractor and subcontractor shall pay each of his or her employees performing work under a contract at a rate not less than the amount established in this subsection.
     (b) Beginning September 30, 2005, and on each following September 30th, the department shall calculate an adjusted living wage rate by increasing the current year's living wage rate by the rate of inflation. The adjusted living wage rate shall be calculated to the nearest cent using the consumer price index for urban wage earners and clerical workers, CPI-W, or a successor index, for the twelve months before each September 1st as calculated by the United States department of labor. Each adjusted living wage rate calculated under this subsection takes effect on the following January 1st.

NEW SECTION.  Sec. 5   EXEMPTION. The chief clerk of the house of representatives and the secretary of the senate may grant an exemption to the living wage requirement of this chapter upon making a written finding either that:
     (1) Compliance with the living wage requirement will cause economic hardship to the state or its citizens; or
     (2) The exemption is in the best interests of the state due to unforeseen or special circumstances including but not limited to a declared natural disaster.

NEW SECTION.  Sec. 6   Captions used in this act are not any part of the law.

NEW SECTION.  Sec. 7   This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect July 1, 2005.

NEW SECTION.  Sec. 8   Sections 1 through 7 of this act constitute a new chapter in Title 44 RCW.