S-1254 _______________________________________________
SENATE BILL NO. 5822
_______________________________________________
State of Washington 51st Legislature 1989 Regular Session
By Senators Cantu, Matson, Saling and McCaslin
Read first time 2/9/89 and referred to Committee on Economic Development & Labor.
AN ACT Relating to prevailing wage; amending RCW 39.12.010, 39.12.015, 39.12.020, and 39.12.030; 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. ((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, and
shall be the average wage from the surveys received by the department from
contractors registered under chapter 18.27 or 19.28 RCW for actual wages paid
on nonpublic construction projects in that county.
(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 employers for equivalent
employee benefits or costs paid by an employer for alternative employee
benefits shall be deducted from the usual benefit amount determined under 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.
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 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.
NEW SECTION. Sec. 5. 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. 6. 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.