SENATE BILL REPORT

SSB 6629

BYSenate Committee on Economic Development & Labor (originally sponsored by Senator Lee)

Exempting the developmentally disabled from prevailing wage provisions.

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):January 22, 1990; January 30, 1990

Majority Report:     That Substitute Senate Bill No. 6629 be substituted therefor, and the substitute bill do pass.

     Signed by Senators Lee, Chairman; Anderson, Vice Chairman; McMullen, Matson, Murray, Smitherman, Warnke, West, Williams.

Senate Staff:Jonathan Seib (786-7427)

                February 14, 1990

AS PASSED SENATE, FEBRUARY 12, 1990

BACKGROUND:

State and local agencies contract with sheltered workshops to employ developmentally disabled persons as landscape maintenance workers.  Prior to 1987, this work was covered by the federal Fair Labor Standards Act, which allowed the workshops to survey local wage rates and pay a disabled person a percentage of that rate depending on the person's productivity. 

In 1987, the Department of Labor and Industries interpreted RCW 39.12, the state prevailing wage law, to apply to landscape maintenance workers.  Since the Fair Labor Standards Act defers to state law, developmentally disabled maintenance workers were covered by the state prevailing wage law.

However, under RCW 39.12.022, the department issues certificates allowing developmentally disabled workers to be paid a percentage of the prevailing wage rate based on productivity.  But since the prevailing wage determined by the state is higher than the wage formerly determined by the workshop's local survey, the cost of contracting with sheltered workshops for maintenance workers has increased.  Sheltered workshops also have high supervisory costs because of the nature of their workers.  Also, sole proprietors who also bid for landscape maintenance work are exempt from the prevailing wage law.  These factors have reportedly diminished the job opportunities for the developmentally disabled.

SUMMARY:

Developmentally disabled persons employed in a sheltered workshop are exempt from the prevailing wage law.  They are to be paid in accordance with regulations issued pursuant to the federal Fair Labor Standards Act.

Appropriation:  none

Revenue:   none

Fiscal Note:    available

Senate Committee - Testified:   Michael Doctor, Rehabilitation Enterprises; Robert Dilger, Washington Building Trades Council; Chuck Bailey, Washington State Labor Council; Mark McDermott, Department of Labor and Industries; Anthony Vivenzio, SEIU; Jeff Larsen, Washington Assembly for Citizens with Disabilities; Gary Smith, IBA