BILL REQ. #:  H-2396.1 

READ FIRST TIME 02/27/07.   

     AN ACT Relating to providing living wages on public contracts; amending RCW 49.48.082; adding a new section to chapter 43.19 RCW; adding a new section to chapter 47.28 RCW; and adding a new chapter to Title 39 RCW.

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

NEW SECTION.  Sec. 1   The legislature finds that the state annually awards contracts to private contractors and vendors, and that such expenditures should be spent in a manner that promotes the creation of jobs that allow residents to support themselves and their families with dignity. The legislature further finds that the present federal and state minimum wages generate income at a level below the amount required to support a family at a basic level and that jobs that do not pay living wages result in families who have greater need of social services provided by the state and paid for by state taxpayers. The payment of adequate wages to workers employed by private contractors and vendors that contract with the state will promote stability and reduced turnover, resulting in a higher quality of service.

NEW SECTION.  Sec. 2   The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Contract" means public works contracts, personal services contracts, and purchasing contracts for goods and services.
     (2) "Contractor" means any person, firm, or corporation that, in the pursuit of an independent business, undertakes a contract with a state agency.
     (3) "Department" means the department of labor and industries.
     (4) "Director" means the director of the department of labor and industries.
     (5) "Employee" has the meaning set forth in RCW 49.46.010. In addition to the individuals excluded under RCW 49.46.010, "employee" does not include an individual:
     (a) Seventeen years old or younger;
     (b) In a position that is designated for a trainee, apprentice, or is otherwise part of a training program; and
     (c) In a work study position, internship, or who is in a position that requires student status as a prerequisite to being employed in that position.
     (6) "Employer" means a contractor or a subcontractor that employs an employee.
     (7) "State agency" means the department of community, trade, and economic development or the department of ecology.
     (8) "Subcontractor" means any person, firm, or corporation that, in the pursuit of an independent business, undertakes a contract with another person, firm, or corporation who holds a contract with the state.

NEW SECTION.  Sec. 3   (1) All contractors and subcontractors covered under this chapter shall pay employees performing work under contracts or subcontracts a living wage no less than nine dollars and twenty-five cents per hour if health benefits are paid for in whole or in substantial part by the employer, or eleven dollars per hour if health benefits are not so provided.
     (2)(a) Beginning January 1, 2008, and each following January 1st as set forth under (b) of this subsection, every contractor and subcontractor shall pay each of his or her employees performing work under contracts or subcontracts at a rate of not less than the amount established under (b) of this subsection.
     (b) Beginning September 30, 2007, and on each following September 30th, the department shall calculate an adjusted living wage rate as specified under this subsection (2)(b). Each adjusted living wage rate shall be calculated to the nearest cent, and shall take effect on the following January 1st.
     (i) If the per capita personal income for the prior calendar year for Washington is equal to or greater than the per capita personal income for the prior calendar year for the United States, the adjusted living wage rate shall be calculated using the sum of:
     (A) The percentage increase in the consumer price index for urban wage earners and clerical workers, CPI-W, or a successor index, for the twelve months prior to each September 1st as calculated by the United States department of labor; and
     (B) The average annual percentage increase in per capita personal income for the prior two calendar years as calculated by the United States department of commerce bureau of economic analysis.
     (ii) If the per capita personal income for the prior calendar year for Washington is less than the per capita personal income for the prior calendar year for the United States, the adjusted living wage rate shall be calculated to the nearest cent using the percentage increase in the consumer price index for urban wage earners and clerical workers, CPI-W, or a successor index, for the twelve months prior to each September 1st as calculated by the United States department of labor.

NEW SECTION.  Sec. 4   (1) In circumstances where a contract also requires the contractor or subcontractor to pay its employees prevailing wages, the contractor or subcontractor shall pay its employees at the contractually prescribed prevailing wage rate or the minimum living wage payable under this chapter, whichever is higher.
     (2) The contractor or subcontractor also shall pay its employees at the minimum wage rate under chapter 49.46 RCW or the minimum living wage payable under this chapter, whichever is higher.

NEW SECTION.  Sec. 5   No contractor or subcontractor shall retaliate or discriminate against an employee in his or her terms and conditions of employment for:
     (1) Reporting a possible violation of this chapter to the director;
     (2) Participating in any legal or administrative proceeding in respect to this chapter;
     (3) Seeking civil remedies to enforce his or her rights conferred by this chapter; or
     (4) Otherwise asserting his or her rights under this chapter.

NEW SECTION.  Sec. 6   If a contractor or subcontractor violates section 3 of this act, the state agency may withhold payment, or suspend or terminate the contract. If the contractor or subcontractor willfully violates section 3 of this act, as evidenced by final orders issued by the department under chapter 49.48 RCW, more than once in a two-year period, the state agency may disqualify the contractor or subcontractor from further contracts for a period of up to two years.

Sec. 7   RCW 49.48.082 and 2006 c 89 s 1 are each amended to read as follows:
     The definitions in this section apply throughout this section and RCW 49.48.083 through 49.48.086:
     (1) "Citation" means a written determination by the department that a wage payment requirement has been violated.
     (2) "Department" means the department of labor and industries.
     (3) "Determination of compliance" means a written determination by the department that wage payment requirements have not been violated.
     (4) "Director" means the director of the department of labor and industries, or the director's authorized representative.
     (5) "Employee" has the meaning provided in: (a) RCW 49.46.010 for purposes of a wage payment requirement set forth in RCW 49.46.020 or 49.46.130; ((and)) (b) RCW 49.12.005 for purposes of a wage payment requirement set forth in RCW 49.48.010, 49.52.050, or 49.52.060; and (c) section 2 of this act for purposes of a wage payment requirement set forth in chapter 39.-- RCW (sections 1 through 6 and 8 through 10 of this act).
     (6) "Employer" has the meaning provided in: (a) RCW 49.46.010 for purposes of a wage payment requirement set forth in RCW 49.46.020, 49.46.130, 49.48.010, 49.52.050, or 49.52.060; and (b) section 2 of this act for purposes of a wage payment requirement set forth in chapter 39.-- RCW (sections 1 through 6 and 8 through 10 of this act).
     (7) "Notice of assessment" means a written notice by the department that, based on a citation, the employer shall pay the amounts assessed under RCW 49.48.083.
     (8) "Wage" has the meaning provided in RCW 49.46.010.
     (9) "Wage complaint" means a complaint from an employee to the department that asserts that an employer has violated one or more wage payment requirements and that is reduced to writing.
     (10) "Wage payment requirement" means a wage payment requirement set forth in RCW 49.46.020, 49.46.130, 49.48.010, 49.52.050, ((or)) 49.52.060, or section 3 of this act, and any related rules adopted by the department.
     (11) "Willful" means a knowing and intentional action that is neither accidental nor the result of a bona fide dispute, as evaluated under the standards applicable to wage payment violations under RCW 49.52.050(2).

NEW SECTION.  Sec. 8   Nothing contained in this chapter may be construed to limit in any way the remedies, legal or equitable, that are available for violations of this chapter.

NEW SECTION.  Sec. 9   If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION.  Sec. 10   (1) The living wage requirement imposed by this chapter applies to all contracts and related subcontracts entered into, renewed, or extended by either the department of community, trade, and economic development or the department of ecology on or after January 1, 2008.
     (2) This act does not apply to any contracts entered into before January 1, 2008.

NEW SECTION.  Sec. 11   A new section is added to chapter 43.19 RCW to read as follows:
     All contracts entered into under this chapter by either the department of community, trade, and economic development or the department of ecology on or after January 1, 2008, are subject to the requirements established under chapter 39.-- RCW (sections 1 through 6 and 8 through 10 of this act).

NEW SECTION.  Sec. 12   A new section is added to chapter 47.28 RCW to read as follows:
     All contracts entered into under this chapter by either the department of community, trade, and economic development or the department of ecology on or after January 1, 2008, are subject to the requirements established under chapter 39.-- RCW (sections 1 through 6 and 8 through 10 of this act).

NEW SECTION.  Sec. 13   Sections 1 through 6 and 8 through 10 of this act constitute a new chapter in Title 39 RCW.