Employers must pay laborers, workers, and mechanics on public works contracts and public building service maintenance contracts at least the prevailing wage rate. The prevailing rate of wage is the hourly wage, usual benefits, and overtime paid to the majority of workers in the same trade or occupation in the largest city in the county where the work is performed. The Department of Labor and Industries (L&I) establishes prevailing wage rates based on collective bargaining agreements for a trade or occupation.
Failing to pay prevailing wage is subject to a civil penalty of at least $5,000, or an amount equal to 50 percent of the total prevailing wage violation, whichever is greater, interest on all wages owed at 1 percent per month, and is not permitted to bid on any public works project (debarred) until the civil penalty is paid. If a contractor or subcontractor is found in violation a second time in a five-year period, the same penalties apply and the contractor or subcontractor is debarred for two years.
A contractor who files a false statement or fails to file any required statement or record is subject to a $500 civil penalty and is debarred until the penalty is paid. For a second violation in a five-year period, the contractor is debarred for one year.
A definition of contractor is added to the prevailing wage statutes to mean any prime contractor any prime contractor, subcontractor, or other employer as defined by rules adopted by L&I.
A contractor also includes an entity, however organized, with substantially identical operations, corporate, or management structure to an entity that has been found to be in violation of state laws on prevailing wage, contractor registration, industrial insurance, or apprentices, or any associated rules. The nonexclusive factors used to determine substantial identity include an assessment of whether there is:
A contractor with substantially identical operations, corporate, or management structure to an entity debarred or sanctioned under state prevailing wage laws, or associated rules, is subject to the same debarment or sanctions as that entity. L&I may take enforcement action against these contractors. L&I may issue a notice of violation, and a hearing must be held following a timely appeal of the notice of violation. L&I must issue a determination with written findings. If a timely appeal is not filed, a notice of violation is final and binding and is not subject to further appeal.
No public hearing was held.
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