SENATE BILL REPORT

ESSB 6346

BYSenate Committee on Economic Development & Labor (originally sponsored by Senators West, Anderson and Saling)

Requiring a study of the methods used by the department of labor and industries to determine prevailing wage rates and the adequacy of enforcement procedures.

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):January 19, 1988; January 26, 1988

Majority Report:  That Substitute Senate Bill No. 6346 be substituted therefor, and the substitute bill do pass.

      Signed by Senators Lee, Chairman; Anderson, Vice Chairman; Cantu, Conner, Deccio, McMullen, Saling, Smitherman, Warnke, West, Williams.

Senate Staff:Bill Lynch (786-7427)

                  January 27, 1988

AS PASSED SENATE, FEBRUARY 10, 1988

BACKGROUND:

The Industrial Statistician, within the Employment Standards-Apprenticeship-Crime Victims Division (ESAC) of the Department of Labor and Industries, is responsible for determining the prevailing wage rate to be paid on all public works projects.  The rate is determined by the hourly wage, overtime, and benefits paid to a majority of workers in the same trade or occupation in the largest city in the county where the work is performed.  If there is not a majority of workers in the same trade or occupation paid at the same rate, then the average pay rate to such workers is used as the prevailing rate.

Some proponents suggest that the methods used by the Industrial Statistician in calculating the prevailing wage are confusing, and that an independent review of the methodology used by the agency could produce greater accuracy in the wage rate.  In addition, there are some concerns that there are inadequate resources to enforce the prevailing wage rate.

SUMMARY:

The Legislative Budget Committee is directed to study the methodology used in determining the prevailing wage on public works contracts and also the adequacy of enforcement of the prevailing wage.

The Legislative Budget Committee must submit a report containing its findings and recommendations to the Governor, the Senate Economic Development and Labor Committee, and the House Commerce and Labor Committee by December 31, 1988.

Appropriation:    none

Revenue:    none

Fiscal Note:      requested January 14, 1988

Senate Committee - Testified: Joe Dear, Dept. of Labor and Industries; Judd Lees, Associated Builders and Contractors (ABC); Duke Schaub, Associated General Contractors; Bob Dilger, Washington State Building and Construction Trades Council; Kathleen Garrity, ABC; Gary Smith, Independent Business Association; Larry Kenney, Washington State Labor Council