AN ACT Relating to prevailing wage; amending RCW 39.12.010, 39.12.015, 39.12.020, 39.12.030, and 39.12.040; adding a new section to chapter 39.12 RCW; and creating a new section.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

Sec. 1. Section 3, chapter 63, Laws of 1945 as last amended by section 1, chapter 15, Laws of 1985 and RCW 39.12.010 are each amended to read as follows:

(1) The "prevailing rate of wage", for the intents and purposes of this chapter, shall be the average rate of hourly wage, average value of usual benefits, and overtime paid in the locality, as hereinafter defined, to ((~~the majority of workmen~~)) all workers, laborers, or mechanics, in the same trade or occupation, but such average shall not be based on wages, usual benefits, and overtime paid on public works projects. ((In the event that there is not a majority in the same trade or occupation paid at the same rate, then the average rate of hourly wage and overtime paid to such laborers, workmen or mechanics in the same trade or occupation shall be the prevailing rate.)) If the wage paid by any contractor or subcontractor to laborers, ((~~workmen~~)) workers, or mechanics on any public work is based on some period of time other than an hour, the hourly wage for the purposes of this chapter shall be mathematically determined by the number of hours worked in such period of time.

(2) The "locality" for the purposes of this chapter shall be the ((~~largest city in the~~)) county wherein the physical work is being performed.

(3) The "usual benefits" for the purposes of this chapter shall include the amount of:

(a) The rate of contribution irrevocably made by a contractor or subcontractor to a trustee or to a third person pursuant to a fund, plan, or program; and

(b) The rate of costs to the contractor or subcontractor which may be reasonably anticipated in providing benefits to ((~~workmen~~)) workers, laborers, and mechanics pursuant to an enforcible commitment to carry out a financially responsible plan or program which was communicated in writing to the ((~~workmen~~)) workers, laborers, and mechanics affected, for medical or hospital care, pensions on retirement or death, compensation for injuries or illness resulting from occupational activity, or insurance to provide any of the foregoing, for unemployment benefits, life insurance, disability and sickness insurance, or accident insurance, for vacation and holiday pay, for defraying costs of apprenticeship or other similar programs, or for other bona fide fringe benefits, but only where the contractor or subcontractor is not required by other federal, state, or local law to provide any of such benefits. Contributions made by an employer for equivalent employee benefits, or costs paid by an employer for alternative employee benefits, shall be considered "usual benefits" for purposes of determining compliance with this chapter.

(4) An "interested party" for the purposes of this chapter shall include a contractor, subcontractor, an employee of a contractor or subcontractor, an organization whose members' wages, benefits, and conditions of employment are affected by this chapter, and the director of labor and industries or the director's designee.

Sec. 2. Section 2, chapter 133, Laws of 1965 ex. sess. and RCW 39.12.015 are each amended to read as follows:

All determinations of the prevailing rate of wage shall be ((~~made~~)) based on surveys performed not less than annually by the industrial statistician of the department of labor and industries. The determinations shall be made based only on information provided from contractors who are properly registered in accordance with chapter 18.27 or 19.28 RCW. The industrial statistician shall endeavor to collect information from union locals and other sources to confirm the accuracy of the information submitted by contractors.

Sec. 3. Section 1, chapter 63, Laws of 1945 as last amended by section 1, chapter 130, Laws of 1982 and RCW 39.12.020 are each amended to read as follows:

The hourly wages to be paid to laborers, ((~~workmen~~)) workers, or mechanics((,)) employed by contractors or subcontractors directly upon the project site of work upon all public works estimated to cost more than one hundred thousand dollars and under all public building service maintenance contracts of the state or any county, municipality or political subdivision created by its laws, shall be not less than the prevailing rate of wage for an hour's work in the same trade or occupation in the locality within the state where such labor is performed. For a contract in excess of ((~~ten~~)) one hundred thousand dollars, a contractor required to pay the prevailing rate of wage shall post in a location readily visible to workers at the job site: PROVIDED, That on road construction, sewer line, pipeline, transmission line, street, or alley improvement projects for which no field office is needed or established, a contractor may post the prevailing rate of wage statement at the contractor's local office, gravel crushing, concrete, or asphalt batch plant as long as the contractor provides a copy of the wage statement to any employee on request:

(1) A copy of a statement of intent to pay prevailing wages approved by the industrial statistician of the department of labor and industries under RCW 39.12.040; and

(2) The address and telephone number of the industrial statistician of the department of labor and industries where a complaint or inquiry concerning prevailing wages may be made.

This chapter shall not apply to ((~~workmen~~)) workers or other persons regularly employed on monthly or per diem salary by the state, or any county, municipality, or political subdivision created by its laws.

Nothing in this section shall restrict a contractor from assigning any worker to any construction work activity, provided the worker is properly certified as may be required by state law and is paid the applicable prevailing rate of wage for the activity being performed. The contractor shall keep accurate records on the hours worked by each worker at each type of work activity.

Sec. 4. Section 2, chapter 63, Laws of 1945 and RCW 39.12.030 are each amended to read as follows:

(1) The specifications for every contract for the construction, reconstruction, maintenance or repair of any public work to which the state or any county, municipality, or political subdivision created by its laws is a party, shall state whether the prevailing rate of wage applies, and, if so, shall contain a provision stating the hourly minimum rate of wage, not less than the prevailing rate of wage as determined by the industrial statistician, which may be paid to laborers, ((~~workmen~~)) workers, or mechanics in each trade or occupation required for such public work employed in the performance of the contract either by the contractor, or subcontractor ((~~or other person doing or contracting to do the whole or any part of the work contemplated by the contract, and~~)). The contract shall contain a stipulation that such laborers, ((~~workmen~~)) workers, or mechanics shall be paid not less than such specified hourly minimum rate of wage.

(2) Upon written request to the contracting agency by a contractor or a subcontractor who is proposing to do work or contracting to work as a contractor or a subcontractor on any public works project, the contracting agency shall provide, within ten days, a written statement of the prevailing rate of wage, and a written notice of the applicable prevailing rate of wages to be paid by the requesting contractor.

(3) If the contracting agency (a) fails to state a prevailing rate of wage in the contract specifications or contract, (b) fails to provide a written statement as required by subsection (2) of this section, or (c) states a wage rate in the specifications, contract document, or in a written statement to any contractor working on the public work and the stated prevailing rate of wage is lower than the applicable prevailing rate of wage; then it shall be the sole responsibility of the contracting agency to provide additional funds to the contractor or subcontractor to be paid to the workers subject to the prevailing rate of wage. The provisions of chapter 39.76 RCW shall apply to additional funds due a contractor where the contracting agency stated a prevailing rate of wage in the contract document or in a written statement to any contractor working on the public work, which was lower than the applicable prevailing rate of wage, upon written notification of the error received by the agency from the contractor.

Sec. 5. Section 4, chapter 63, Laws of 1945 as last amended by section 2, chapter 130, Laws of 1982 and RCW 39.12.040 are each amended to read as follows:

Before payment is made by or on behalf of the state, or any county, municipality, or political subdivision created by its laws, of any sum or sums due on account of a public works contract, it shall be the duty of the officer or person charged with the custody and disbursement of public funds to require the contractor and each and every subcontractor from the contractor or a subcontractor to submit to such officer a "Statement of Intent to Pay Prevailing Wages". For a contract in excess of ((~~ten~~)) one hundred thousand dollars, the statement of intent to pay prevailing wages shall include:

(1) The contractor's registration certificate number; and

(2) The prevailing rate of wage for each classification of workers entitled to prevailing wages under RCW 39.12.020 and the estimated number of workers in each classification.

Each statement of intent to pay prevailing wages must be approved by the industrial statistician of the department of labor and industries before it is submitted to said officer. Unless otherwise authorized by the department of labor and industries, each voucher claim submitted by a contractor for payment on a project estimate shall state that the prevailing wages have been paid in accordance with the prefiled statement or statements of intent to pay prevailing wages on file with the public agency. Following the final acceptance of a public works project, it shall be the duty of the officer charged with the disbursement of public funds, to require the contractor and each and every subcontractor from the contractor or a subcontractor to submit to such officer an "Affidavit of Wages Paid" before the funds retained according to the provisions of RCW 60.28.010 are released to the contractor. Each affidavit of wages paid must be certified by the industrial statistician of the department of labor and industries before it is submitted to said officer.

NEW SECTION. Sec. 6. A new section is added to chapter 39.12 RCW to read as follows:

The prevailing rate of wage for any public works project as defined by chapter 39.04 RCW and which is subject to both the prevailing rate of wage of this chapter and the federal prevailing wage rate under 40 U.S.C. Sec. 276a, the prevailing rate of wage for that public works project shall be the federal prevailing wage rate.

NEW SECTION. Sec. 7. By December 1, 1989, the department of labor and industries shall provide a report to the legislature on improvements regarding prevailing wage. The report shall address the following:

(1) Verifying the accuracy of wage data submitted to the department;

(2) Utilizing increased sources of data upon which the prevailing wage calculation is based; and

(3) Processing complaints and contractor documents in a more timely manner.