SENATE BILL REPORT

SB 5690

BYSenator Bender

Revising procedures to establish prevailing wages on public works.

Senate Committee on Commerce & Labor

Senate Hearing Date(s):March 4, 1987

Senate Staff:Mark McDermott (786-7429)

AS OF MARCH 3, 1987

BACKGROUND:

Nongovernmental employees working on public works projects or public building service maintenance contracts shall be paid the prevailing wage for that trade or occupation.  The prevailing wage is defined as the hourly wage, the usual fringe benefits and overtime paid to the majority of workers employed in that trade or occupation in the largest city where the physical work is performed.  If a majority of workers are not paid the same rate, the prevailing wage shall be the average hourly wage and overtime paid to workers in that trade or occupation.

The prevailing wage is determined by the industrial statistician of the Department of Labor and Industries.

Any contractor or subcontractor who files a false statement or fails to file a statement or record related to the payment of the prevailing wage shall pay a civil penalty of $500 and shall not be allowed to bid or have a bid considered until the penalty has been paid in full.  A second offense within a five-year period shall result in the loss of the right to bid or have a bid considered for one year.

Before any payments are made on a public works project, the officer or person charged with disbursement shall require the contractor and all subcontractors to sign a "statement of intent to pay prevailing wages."

A complaint concerning the nonpayment of the prevailing wage shall be filed with the Department of Labor and Industries no later than 30 days from the acceptance date of the public works project contract.

SUMMARY:

If a public works project is bid and is contracted and performed out of state, the wages and benefits shall be those that prevail where the bid is opened or where the actual work is performed. 

If a wage survey is retaken in an area where a prevailing wage has already been established, the prevailing rate cannot be lowered if 33 percent of the workers and apprentices on public and private projects are paid the same or more than the prevailing wage. 

All workers and apprentices shall be paid the prevailing wage.  Partners, stockholders and owners of a company are not exempt.

No contractor can bid on a public works project unless that contractor has a certified apprenticeship program with indentured apprentices. 

Any contractor or subcontractor who files a false statement or fails to file a required statement or record cannot bid or have a bid considered for one year.  A second offense within a five-year period shall result in the loss of the right to bid or have a bid considered for five years.

If a "statement of intent to pay prevailing wage" is not signed or if a statement does not contain the wage rates, the Department shall issue a citation to stop the work until the law is complied with and the rates are paid and posted.

The appeal period for complaints regarding nonpayment of the prevailing wage is extended to 60 days. 

Fiscal Note:      requested