HOUSE BILL REPORT

EHB 1298

BYRepresentatives R. King, Winsley, Vekich, Baugher, Leonard, Gallagher, Sayan, Cole, Walk, Prentice, Heavey, Dellwo, Belcher, Scott, Rector, Basich, Jones, Nelson, Phillips, Pruitt, Brekke and Ebersole

Enforcing the payment of prevailing wages.

House Committe on Commerce & Labor

Majority Report:  Do pass with amendments.  (10)

      Signed by Representatives Vekich, Chair; Cole, Vice Chair; Patrick, Ranking Republican Member; Jones, R. King, Leonard, Prentice, Smith, Walker and Wolfe.

House Staff:Chris Cordes (786-7117)

AS PASSED HOUSE MARCH 2, 1989

BACKGROUND:

The state prevailing wage law requires prevailing wages to be paid to employees on public works construction projects.  All public works contracts must contain a provision requiring the payment of prevailing wages.  Before an agency may disburse any payment on a public works contract, the contractor and subcontractors are required to submit a "statement of intent to pay prevailing wages."  When the agency finally accepts the project, an "affidavit of wages paid" must be submitted before the agency may release the final payments.

An agency that willfully fails to comply with the prevailing wage requirements is liable for any wages due to the project's employees under the prevailing wage law.

SUMMARY:

The legislature declares that there is a need to assure that public agencies carry out their responsibilities under the prevailing wage law and that an enforceable standard of compliance is established.

Agencies that knowingly fail to comply with the requirements of the prevailing wage law are liable for wages due to employees.  The requirement that the violation be willful is deleted.

Fiscal Note:      Available.

House Committee ‑ Testified For:    Bob Dilger, Washington State Construction and Building Trades Council; Gary Smith, Independent Business Association; and Cindy Zehnder, Joint Council of Teamsters.

House Committee - Testified Against:      Jim Justin, Association of Washington Cities; Bob Moorhead, City of Olympia; and Jim Bush, Department of Transportation.

House Committee - Testimony For:    Enforcement of the prevailing wage law is a significant problem. Agencies that award public works contracts should have an incentive to comply with their responsibilities under the law.

House Committee - Testimony Against:      If the agency is responsible for guaranteeing that a contractor complies with the law, it could lead to substantial auditing and enforcement costs for the agency.  An agency should not be responsible for enforcement unless the agency knows that the contractor is not paying the required wages.