Prevailing Wage Requirements. State law requires employers to pay prevailing wages to laborers, workers, and mechanics employed on all public works projects. The prevailing wage is the hourly wage, usual benefits, and overtime paid in the largest city in the county to the majority of individuals in the same trade or occupation.

If an interested party files a complaint with the Department of Labor and Industries (L&I) alleging a violation of this requirement, L&I must investigate and determine whether the violation occurred.  Interested parties include contractors, subcontractors, employees of contractors or subcontractors, organizations whose members are affected by prevailing wage requirements, and the director of L&I.  Under L&I rules, interested parties are able to request certified payroll records from contractors on public works projects.

Each contractor, subcontractor, or employer is required to keep accurate payroll records for three years from the date of acceptance of the public works project by the contract awarding agency. The payroll records must include, among other things, the net wages paid for each worker.

Joint Labor Management Cooperation Committees and Taft-Hartley Trusts.  A Joint Labor Management Cooperation Committee is an entity established under federal law that includes representatives of both labor and management.  The purpose of a Joint Labor Management Cooperation Committee is to provide a mechanism through which labor and management may jointly address workplace concerns.

A Taft-Hartley trust is a multi-employer trust created by a collective bargaining agreement.  The purpose of a Taft-Hartley trust is to provide benefits to union members, including retirement benefits and health benefits.

The definition of interested party is expanded to include a Joint Labor Management Cooperation Committee and a Taft-Hartley trust.

L&I is required to provide, upon request, a copy of an employer's certified payroll records to an interested party.  Records provided to a Joint Labor Management Cooperation Committee may only be used to file complaints under specified law relating to wage complaints and may not be used for any other purpose, including union organizing or commercial activity.

PRO:  Wage theft is a persistent problem in the construction industry.  This bill would give workers the tools they need to identify violations and work with enforcement agencies to hold bad actors accountable.  This ensures a more level playing field and promotes ethical business practices.  This bill is not expanding the scope or type of records that could be requested by interested parties.

CON:  There are concerns about how the payroll information will be used and questions about the purpose of adding these parties to the list of interested parties.  Not all employers are represented by joint labor management committees.  Under this bill, joint labor management committees could access payroll records without having a direct relationship to the employer or employees.  These parties can likely access payroll records under current law through other means.