SENATE BILL REPORT

ESHB 2578

BYHouse Committee on Commerce & Labor (originally sponsored by Representatives Jones, Winsley, Vekich, Leonard, Crane, Cole, Prentice, R. King, Day, Wineberry, Wang, Fraser, Rector, Dellwo, Scott and Todd; by request of Department of Labor and Industries)

Changing provisions relating to prevailing wage law.

House Committe on Commerce & Labor

Rereferred House Committee on Appropriations

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):February 19, 1990

Senate Staff:Jonathan Seib (786-7427)

AS OF FEBRUARY 20, 1990

BACKGROUND:

Contractors and subcontractors on public works projects must file a statement of intent to pay prevailing wage and an affidavit of wages paid.  Those filing a false statement or failing to file a statement are subject to a $500 civil penalty.

Contractors and subcontractors on public works projects must pay the prevailing wage.  Those failing to pay the required wage are subject to a civil penalty.  An affected employee has a private right of action for the unpaid wages.  In certain circumstances, the Department of Labor and Industries can bring an action to collect unpaid wages.

The Department of Labor and Industries is authorized to charge fees for approving prevailing wage statements, certifying affidavits of wages paid, and conducting prevailing wage arbitration proceedings.  The fees are to be set at a level to cover these activities.  There is no similar provision to cover the costs of other activities the department performs to enforce the prevailing wage law.

SUMMARY:

Before a public agency may make payment to a contractor or subcontractor on a public works project, the contractor is required to submit to the public agency a statement in writing certifying the hourly wage rate paid to employees on the project, and listing each employee's name, social security number, and hours worked.  The contractor must also certify that no employee was paid less than the prevailing wage specified in the contract.  The certified statement must be submitted in addition to the statement of intent to pay prevailing wages.

The civil penalty for filing a false prevailing wage statement or failing to file a statement required under the prevailing wage law is changed from $500 to $1,000 or 20 percent of the total prevailing wage violation found in connection with each filing or failure to file, whichever is greater.

In addition to a civil penalty, if a contractor or subcontractor fails to pay the required prevailing wage rate to his or her employees, the contractor or subcontractor is liable for both the wages due and interest on the back wages up to 1.5 percent per month on the wages owed.

The contractor or subcontractor is not eligible to bid on public works projects until the back wages and interest, and any civil penalty, have been paid.

The Department of Labor and Industries must set the fees charged for approving prevailing wage statements, certifying affidavits of wages paid, and conducting prevailing wage arbitrations at levels that, as near as practicable, generate sufficient revenue to carry out the activities required under the prevailing wage law.

Appropriation:    none

Revenue:    yes

Fiscal Note:      available