Washington Prevailing Wage Information
GENERAL INFORMATION
The Washington State Public Works Act (WSPWA)—Chapter 39.12 Revised Code of Washington (RCW))—was enacted in 1945 and requires that employees of government contractors be paid prevailing wages for all public work. “Prevailing wage” is the wage construction and maintenance contractors must pay their employees for work on projects paid for by public funds, such as a state office building or county roads. The prevailing wage rate is the hourly wage, usual benefits, and overtime paid in the largest city in each county, to the majority of workers, laborers, and mechanics performing the same work. (RCW 39.12.010; RCW 39.12.015).
The Washington State Department of Labor and Industries (WDLI) is responsible for establishing prevailing wage rates. The WDLI researches average pay and benefit levels paid to different worker trades/occupations in the largest city of the county where the work is being done. The prevailing rate of wage is established separately for each county, and reflects local wage conditions.
How prevailing wage rates are established
The WDLI’s Industrial Statistician determines all prevailing wage rates. Surveys are conducted in which contractors and labor unions are invited to submit wage and hour data to the Industrial Statistician. The survey list of contractors and labor unions is established using industrial insurance, Intent and Affidavit filing and licensing data. If the majority of workers in a trade or occupation in the largest city in a county are paid at the same wage rate for the same work, that wage becomes theprevailing wage for that work. If no single wage rate is paid to a majority of workers in a particular locality, an average wage is calculated and that wage becomes the prevailing wage. Trades are generally surveyed every three years to determine the prevailing wage rates.
The method for calculating prevailing wage is as follows:
Joint state and federal projects
For projects where both state prevailing wage law AND federal Davis-Bacon apply and other related acts apply, contractors and subcontractors must pay the higher of the state/federal wage rates, on a classification-by-classification basis. This requirement should also be stated in the bid specifications and the contracts. WAC 296-127-025.
Payment of wages less than the prevailing wage rate
There are four situations where a wage that is less than the journey-level prevailing wage may be paid:
Apprentices
Apprentices are defined as those workers for whom an apprenticeship agreement has been registered and approved by the state apprenticeship council. Under this law, any “helper” or other type of assistant who is not registered with the WSATC is to be considered a fully qualified journey-level worker, and must be paid the full journey-level wage. Workers registered with the WSATC are entitled to the prevailing wage rates for an apprentice of that trade. (RCW 39.12.021 and WAC 296-127-021).
Vocationally handicapped
Workers whose earning capacity is impaired by physical or mental deficiency or injury may be employed upon public works for reduced wages under special certificates issued by L&I. The certificate lists the percent of journey-level wage that may be paid to the worker on public works projects. These certificates are filed by nonprofit vocational rehabilitation programs and may be obtained by contacting the Prevailing Wage Program. RCW 39.12.022 and WAC 296-127-400 through 460.
Sole Proprietors, Partners and Officer/Owners
Sole owners of their own businesses who perform the actual work themselves on public works projects are not required to pay themselves the prevailing wage rates. Partners in a partnership who own at least 30 percent of a company are likewise not required to pay themselves prevailing wage rates. The president, vice president and treasurer of a corporation are not required to pay themselves prevailing wage, as long as each owns at least 30 percent of the corporation. These companies are not exempt from the remaining requirements of the statute. Specifically, they are still responsible for filing Intent and Affidavit forms. Any worker performing actual work on the project who owns less than 30 percent of the company is not exempt and must be paid the prevailing wage rate. WAC 296-127-026.
Public Employees
Workers regularly employed by the state or any political subdivision created by its laws are exempt from the requirements of the prevailing wage law. RCW 39.12.020 and WAC 296-127-026.
THRESHOLD
There is no minimum dollar contract amount for public works or prevailing wage. All contracts between a public agency and a private contractor or subcontractor to perform work at the cost of the public agency are public works contracts and require the payment of prevailing wages. RCW 39.04.010, RCW 39.12.010, RWC 39.12.020 and WAC 296-127-010.
TIMING OF WAGE DETERMINATIONS & INCREASES
The prevailing wage rates, in a particular county, are determined by the bid due date for a public works project and these rates apply to that project until it is completed, unless the contract award date is six months or more after the bid due date. In this case, the award date would determine the rates to be paid. The bid due date is the date that General Contractor bids for the project are due to the Awarding Agency. All sub-contractors use this same bid due date and award date.
**Please Note—The prevailing wage rates in effect on the bid due date are the prevailing wage rates that apply to that construction project, no matter how long it lasts, unless the contract is awarded more than six months after the bids were due. For those contracts where the award was delayed more than six months, the prevailing wage rates in effect on the date of the award shall apply for the duration of the contract. WAC 296-127-011.
Updated prevailing wage rates are published twice each year:
1) the first business day of February (effective 30 days later)
2) the first business day of August (effective 30 days later)
Prevailing wages take effect 30 days after publication. The publications are necessary to adjust the rates based on rate surveys, changes to the minimum wages, and changes to rates that are based on a union majority.
*Note: Prevailing Wages established based on a collective bargaining agreements (CBA) may be adjusted up or down at the semi-annual wage publication based on changes to the CBA.
OVERTIME
According to the WSPWA, where applicable, special overtime rates are established for each trade and occupation.
Eight-hour workday
The Legislature has established an eight-hour workday for public works projects and provided for an exception where there is a properly executed agreement between the worker and employer for a 10-hour workday. Agreements for a 10-hour day must conform to the specific conditions set forth in the applicable rule. Basically, the 10-hour workday agreement must be voluntary, entered into individually with each worker, and signed and dated by the employer and the worker prior to work beginning. In any event, overtime rates must be paid for all hours worked in excess of 40 hours for the week at a rate of time and one-half. (RCW 49.28.010, RCW 49.28.040, RCW 49.28.050, RCW 49.28.060, RCW 49.28.065 and WAC 296-127-022).
Penalty
Any contractor, subcontractor, or agent of contractor or subcontractor, foreman, or employer who violates the overtime provision is guilty of a misdemeanor and will be fined a sum not less than twenty-five dollars nor more than two hundred dollars, or imprisoned in the county jail for a period of not less than ten days nor more than ninety days, or both such fine and imprisonment, at the discretion of the court.
WORKING ON THE WEEKENDS
Under Chapter 39.12 RCW, work performed on Saturday and Sunday is subject to overtime provisions for a given trade/occupation.
WORKING ON LEGAL HOLIDAYS
According to the WSPWA, where applicable, special holiday rates are established for each trade and occupation. Please See, wage determinations for applicable holidays per trade.
SHIFT DIFFERENTIALS
Washington prevailing wage law does not provide shift differentials per trade. However, CBAs may state shift differential rates that may vary by county and trade.
FRINGE (USUAL) BENEFITS
Pursuant to WA prevailing wage law, fringe benefits include:
Benefits that are required by law (e.g., industrial insurance, social security) do not qualify as usual benefits. Employers must pay a wage and usual/fringe benefits package that adds up to the prevailing rate of wage. If the employer does not provide the usual fringe benefits, then the total prevailing wage rate must be paid as an hourly wage. Employer paid usual benefits cannot be applied to reduce the actual wage paid below the state minimum wage rate and the amount attributable to benefits must be calculated based on WSDLI methodology.
TRAINING CONTRIBUTIONS
“Usual benefits” include “apprentice training fund” which is payments made to training programs approved or recognized by the WSATC.
APPRENTICE REQUIREMNTS
Apprentice workers employed upon public works projects for whom an apprenticeship agreement has been registered and approved with the state apprenticeship council pursuant to chapter 49.04 RCW, must be paid at least the prevailing hourly rate for an apprentice of that trade. Any worker for whom an apprenticeship agreement has not been registered and approved by the state apprenticeship council shall be considered to be a fully qualified journey level worker, and, therefore, shall be paid at the prevailing hourly rate for journey level workers.
TRAVEL & SUBSISTENCE
Washington prevailing wage law does not compensate employees for travel time or subsistence. Please See, WAC 296-127-018 for dump truck travel time and 39.12.030 RCW for general information on travel time.
CONTRACTOR LICENSING
To perform construction work in Washington, contractors are required to register with the WA DOLI. Specifically, electricians and plumbers must be licensed. To determine whether a contractor, electrician or plumber is registered in Washington, please call (360) 902-5226.
Washington's Contractor Licensing Policy
DUTIES OF CONTRACTORS/SUB-CONTRACTORS
Maintaining Payroll Records
The employer is required to keep certain records in addition to the pay statement. Payroll records must be kept showing the name, address, Social Security number, trade or occupation, straight-time rate, hourly rate of usual benefits and overtime hours worked each day and week, including agreements to work up to 10-hour days, and the actual rate of wages paid. Upon receiving a written request from L&I, the awarding agency or an interested party, an employer must, within 10 days, submit Certified Project Payroll records to WSDLI and to the awarding agency. RCW 39.12.010(4) and WAC 296-127-320.
Wage Statements
Washington employment law requires that employers provide, with each employee’s paycheck, an itemized statement showing time worked, rates of pay, gross wages and a list of all deductions. The employee should not have to ask for this. It must be provided with each paycheck. WAC 296-126-040.
Contractual Obligations
Contractors and subcontractors must abide by the terms of their contracts. On public works projects, the contract will state that prevailing wages must be paid to the workers and will include a listing of the prevailing wage rates that apply to that contract or will direct the contractor to L&I’s URL for a list of applicable wage rates. Contractors and subcontractors are responsible for determining the correct worker classification(s) in order to ensure correct wages are paid. RCW 39.04.010, RCW 39.12.010, RCW 39.12.030 and WAC 296-127-011.
Turnkey Projects (lessee/lessor relationships between public and private parties)
Prevailing wages must be paid for any work, construction, alteration, repair or improvement that the state or a municipality causes to be performed by a private party through a contract to rent, lease, or purchase at least 50 percent of the project by one or more state agencies or municipalities. RCW 39.04.260 and WAC 296-127-010(7)(a)(iii).
Intent and Affidavit Forms
Every contractor and subcontractor on a public works project must individually submit Intent and Affidavit forms (approved and certified by L&I) to the agency administering the contract in order to receive payment. Intent forms should be filed prior to the start of work. Affidavits are filed after completion of the work. A contractor may file on behalf of another contractor only under a limited set of circumstances that includes a direct contractual relationship between the filing contractor and the non-filing subcontractor, and a nonresponsive subcontractor that has gone out of business or failed to file as required.
Approval and certification of Intent and Affidavit forms by the Industrial Statistician is based on the information provided on the forms. It signifies that the wage rates are listed correctly for the classifications indicated, but does not signify L&I approval of the classifications of labor used by the contractor. (RCW 39.04.155, RCW 39.12.040, WAC 296-127-040, WAC 296-127-045 and WAC 296-127-050).
Penalties–Failure to File or False Filing of a Statement/record
Following an WSDLI determination that a contractor or subcontractor filed a false statement or failed to file a statement or record required to be filed, the non-compliant contractor or subcontractor is subject to civil penalties and may be barred from bidding on public works contracts until the penalties have been paid. A contractor or subcontractor who files a false statement or fails to file a required statement or record for a second time within a five-year period will be barred from bidding on public works contracts for one year. RCW 39.12.050, WAC 296-127-150 and WAC 296-127-310.
Progress Payments
Voucher claims submitted for agency payment must include a certification that prevailing wages were paid by the contractor in accordance with the pre-filed statement or statements of intent to pay prevailing wages on file. RCW 39.12.040(1)(b).
Labor Classifications
All work performed under a public works contract must be classified into one or more of the many labor classifications for which prevailing wage rates have been established so that the appropriate wage can be applied. For example, workers installing sheet metal ducts are classified as Sheet Metal Workers, and receive the prevailing wage rate for that occupation. Contractors and subcontractors are responsible for ensuring that the proper classifications of labor are reported, and should take great care, since this is where many mistakes are made. Scope of work descriptions are available as a guide in determining which labor classification is appropriate. Any doubts or unresolved questions regarding the appropriate classifications of labor must be directed to the Prevailing Wage Program. RCW 39.12.010, RCW 39.12.015, RCW 39.12.020, RCW 39.12.060, RCW 39.12.065, WAC 296-127-013, WAC 296-127-0130 through 01396, WAC 296-127-019 and WAC 296-127-060.
Posting
An approved copy of the Intent form for each contractor and subcontractor must be posted at the job site prior to the commencement of work for contracts in excess of $10,000. If the Intent form is in the process of being approved by the Industrial Statistician, the complete listing of the prevailing wage rates for the county where the job site is located may be posted until the approved form is received. Failure to meet these posting requirements is a violation of Chapter 39.12 RCW. (RCW 39.12.020).
Payroll Records
Contractors and subcontractors must keep accurate payroll records for three years following the date of acceptance of the project by the awarding agency. Payroll records must show the name, address, Social Security number, trade or occupation, straight-time rate, hourly rate of usual benefits and overtime hours worked each day and week, including agreements to work up to 10-hour days, and the actual rate of wages paid. Upon receiving a written request from L&I, the awarding agency or an interested party, a contractor or subcontractor must, within ten days, submit Certified Project Payroll records to L&I and to the awarding agency. RCW 39.12.010(4) and WAC 296-127-320.
Payment of usual benefits
Employers must pay a wage and usual benefits package that adds up to the prevailing rate of wage. If an employer does not provide usual benefits, then the total prevailing wage rate must be paid as an hourly wage. Special overtime and holiday rates may also 12 be established for each trade and occupation. Contractors and employers must have and make available to L&I upon request, copies of all documents concerning usual benefits. Since employers are required by federal law to provide eligible employees with a Summary Plan Description (SPD) regarding certain pension plan benefits, typically the SPD (together with any pertinent Summary Material Modifications) and proof of deposits made will document payments for those benefits. In any event, employer-paid usual benefits cannot be applied so as to reduce the actual wage paid below the state minimum wage, and the amount attributable to benefits must be calculated consistent with L&I methodology.
PENALTIES
First Offense—Underpayment of prevailing wages
Contractor/subcontractor that violated the requirement to pay prevailing wages is subject to a civil penalty of not less than $1000 or an amount equal to 20% of the total prevailing wage violation found on the contract (whichever is greater) and is not permitted to bid, or have a bid considered, on any public works contract until such civil penalty has been paid in full to the director.
Second offense—Underpayment of prevailing wages
If a contractor or subcontractor is found to have participated in a violation of the requirement to pay the prevailing rate of wage for a second time within a five-year period, the contractor or subcontractor shall be subject to the sanctions prescribed in this subsection and as an additional sanction shall not be allowed to bid on any public works contract for two years. Please See, “Debarment” for additional information.
Contractor Strikes List
This is a list of contractors who received valid strike(s) for violation or infraction of prevailing wage law (RCW 39.12.050 or 39.12.065), contractor registration law, (chapter 18.27 RCW), industrial insurance law (RCW 51.48.020(1) or 51.48.103), or apprenticeship law (chapter 49.04 RCW). These strikes are used in determining whether the contractor is eligible to perform public works. The following explains how the strikes debar a contractor from public works:
Violation of any two of the following statutes within a five (5) year period will result in a one (1) year debarment:
Please See, “Helpful Links” below to access the list.
DEBARMENT
Pursuant to 39.04.350 RCW, contractors/subcontractors are debarred from bidding on public works construction projects. A contractor who is debarred may not bid on, or have a bid considered on, any public works contract. A contractor may be debarred for violations or infractions of prevailing wage law (chapter 39.12 RCW), contractor registration law (chapter 18.27 RCW), or industrial insurance law (chapter 51.48 RCW).
A contractor who receives a penalty for violation(s) of prevailing wage law (chapter 39.12 RCW) is debarred until all penalties as a result of the violation(s) are paid in full. A contractor who is determined by WSLI to owe workers unpaid prevailing wages under RCW 39.12.065 is debarred until the wages are paid in full. Additionally, depending on the violation, a contractor who receives 2 or more strikes within a 5-year period may be debarred for 1 or 2 years even if all penalties and/or wages owed are paid prior to that time. Please See, the “Contractor Strikes” section below.
A contractor will not be allowed to bid on any public works contract for one year from the date of a final determination that the contractor has committed any combination of two of the following violations/infractions within a five-year period:
A contractor or subcontractor cannot be barred from bidding on any public works contract if the contractor or subcontractor relied upon written information from the department to pay a prevailing rate of wage that is later determined to be in violation of this chapter.
Please See, “Helpful Links” for a list of debarred contractors.
HELPFUL LINKS
Debarred Contractors List
Contractor Strikes List
List of Apprenticeship Utilization Violators
Washington State Department of Labor and Industries Prevailing Wage Section
Prevailing wage rates
Journey Level prevailing wage rates
Apprentice prevailing wage rates
To receive prevailing wage updates by email: Prevailing Wage listserv OR change to a new email address
Worker classifications
Filing a wage complaint
Certified payroll form
Wage and hour survey
Schedule of surveys
Publication Correction Notification
Prevailing wage determination request
Affidavit of wages paid
Affidavit of wages paid Addendum B List of Next Tier Subcontractors
Affidavit of wages paid Addendum D
Affidavit of wages paid EHB 2805 Addendum
Interested party checklist for filing of prevailing wage complaints
Prevailing wage complaint and instructions
Statement of intent to pay prevailing wages
Statement of intent to pay prevailing wages—Addendum C
Instrucciones para el registro de una queja sobre salario prevaleciente
Washington State Prevailing Wage Law
Packet Guide to Workers Rights
Prevailing wage electronic mailing list
CONTACT INFORMATION
Prevailing Wage Support
Phone (wage rate information): (360) 902-5335
Surveys: (360) 902-4626
Wage Claims: (360) 902-5335
Fax: (360) 902-5300
Toll-Free Line: (855) 545-8163
General PW Email: [email protected]
Mailing Address
Department of Labor & Industries
Prevailing Wage Section
PO BOX 45540
Olympia, WA 98504-4540
Physical Address
7273 Linderson Way SW
Tumwater, WA 98501
The Washington State Public Works Act (WSPWA)—Chapter 39.12 Revised Code of Washington (RCW))—was enacted in 1945 and requires that employees of government contractors be paid prevailing wages for all public work. “Prevailing wage” is the wage construction and maintenance contractors must pay their employees for work on projects paid for by public funds, such as a state office building or county roads. The prevailing wage rate is the hourly wage, usual benefits, and overtime paid in the largest city in each county, to the majority of workers, laborers, and mechanics performing the same work. (RCW 39.12.010; RCW 39.12.015).
The Washington State Department of Labor and Industries (WDLI) is responsible for establishing prevailing wage rates. The WDLI researches average pay and benefit levels paid to different worker trades/occupations in the largest city of the county where the work is being done. The prevailing rate of wage is established separately for each county, and reflects local wage conditions.
How prevailing wage rates are established
The WDLI’s Industrial Statistician determines all prevailing wage rates. Surveys are conducted in which contractors and labor unions are invited to submit wage and hour data to the Industrial Statistician. The survey list of contractors and labor unions is established using industrial insurance, Intent and Affidavit filing and licensing data. If the majority of workers in a trade or occupation in the largest city in a county are paid at the same wage rate for the same work, that wage becomes theprevailing wage for that work. If no single wage rate is paid to a majority of workers in a particular locality, an average wage is calculated and that wage becomes the prevailing wage. Trades are generally surveyed every three years to determine the prevailing wage rates.
The method for calculating prevailing wage is as follows:
- Largest City in County—Majority Wage: If more than one-half of all hours reported in the largest city in a county are worked at one wage rate, then that majority wage rate becomes the prevailing wage for the whole county.
- Largest City in County—Average Wage: If there is no majority wage rate, then a weighted average wage is computed using data from the largest city in a county. The weight attached to each wage is the total number of hours reported to be worked at that wage.
- County Average: If no hours are reported in a county’s largest city, then a weighted average wage is computed using countywide data.
- Existing Wage Rate—Remains in Place: If no data is reported for the entire county, then the county’s old prevailing wage is retained as the new prevailing wage.
Joint state and federal projects
For projects where both state prevailing wage law AND federal Davis-Bacon apply and other related acts apply, contractors and subcontractors must pay the higher of the state/federal wage rates, on a classification-by-classification basis. This requirement should also be stated in the bid specifications and the contracts. WAC 296-127-025.
Payment of wages less than the prevailing wage rate
There are four situations where a wage that is less than the journey-level prevailing wage may be paid:
Apprentices
Apprentices are defined as those workers for whom an apprenticeship agreement has been registered and approved by the state apprenticeship council. Under this law, any “helper” or other type of assistant who is not registered with the WSATC is to be considered a fully qualified journey-level worker, and must be paid the full journey-level wage. Workers registered with the WSATC are entitled to the prevailing wage rates for an apprentice of that trade. (RCW 39.12.021 and WAC 296-127-021).
Vocationally handicapped
Workers whose earning capacity is impaired by physical or mental deficiency or injury may be employed upon public works for reduced wages under special certificates issued by L&I. The certificate lists the percent of journey-level wage that may be paid to the worker on public works projects. These certificates are filed by nonprofit vocational rehabilitation programs and may be obtained by contacting the Prevailing Wage Program. RCW 39.12.022 and WAC 296-127-400 through 460.
Sole Proprietors, Partners and Officer/Owners
Sole owners of their own businesses who perform the actual work themselves on public works projects are not required to pay themselves the prevailing wage rates. Partners in a partnership who own at least 30 percent of a company are likewise not required to pay themselves prevailing wage rates. The president, vice president and treasurer of a corporation are not required to pay themselves prevailing wage, as long as each owns at least 30 percent of the corporation. These companies are not exempt from the remaining requirements of the statute. Specifically, they are still responsible for filing Intent and Affidavit forms. Any worker performing actual work on the project who owns less than 30 percent of the company is not exempt and must be paid the prevailing wage rate. WAC 296-127-026.
Public Employees
Workers regularly employed by the state or any political subdivision created by its laws are exempt from the requirements of the prevailing wage law. RCW 39.12.020 and WAC 296-127-026.
THRESHOLD
There is no minimum dollar contract amount for public works or prevailing wage. All contracts between a public agency and a private contractor or subcontractor to perform work at the cost of the public agency are public works contracts and require the payment of prevailing wages. RCW 39.04.010, RCW 39.12.010, RWC 39.12.020 and WAC 296-127-010.
TIMING OF WAGE DETERMINATIONS & INCREASES
The prevailing wage rates, in a particular county, are determined by the bid due date for a public works project and these rates apply to that project until it is completed, unless the contract award date is six months or more after the bid due date. In this case, the award date would determine the rates to be paid. The bid due date is the date that General Contractor bids for the project are due to the Awarding Agency. All sub-contractors use this same bid due date and award date.
**Please Note—The prevailing wage rates in effect on the bid due date are the prevailing wage rates that apply to that construction project, no matter how long it lasts, unless the contract is awarded more than six months after the bids were due. For those contracts where the award was delayed more than six months, the prevailing wage rates in effect on the date of the award shall apply for the duration of the contract. WAC 296-127-011.
Updated prevailing wage rates are published twice each year:
1) the first business day of February (effective 30 days later)
2) the first business day of August (effective 30 days later)
Prevailing wages take effect 30 days after publication. The publications are necessary to adjust the rates based on rate surveys, changes to the minimum wages, and changes to rates that are based on a union majority.
*Note: Prevailing Wages established based on a collective bargaining agreements (CBA) may be adjusted up or down at the semi-annual wage publication based on changes to the CBA.
OVERTIME
According to the WSPWA, where applicable, special overtime rates are established for each trade and occupation.
Eight-hour workday
The Legislature has established an eight-hour workday for public works projects and provided for an exception where there is a properly executed agreement between the worker and employer for a 10-hour workday. Agreements for a 10-hour day must conform to the specific conditions set forth in the applicable rule. Basically, the 10-hour workday agreement must be voluntary, entered into individually with each worker, and signed and dated by the employer and the worker prior to work beginning. In any event, overtime rates must be paid for all hours worked in excess of 40 hours for the week at a rate of time and one-half. (RCW 49.28.010, RCW 49.28.040, RCW 49.28.050, RCW 49.28.060, RCW 49.28.065 and WAC 296-127-022).
Penalty
Any contractor, subcontractor, or agent of contractor or subcontractor, foreman, or employer who violates the overtime provision is guilty of a misdemeanor and will be fined a sum not less than twenty-five dollars nor more than two hundred dollars, or imprisoned in the county jail for a period of not less than ten days nor more than ninety days, or both such fine and imprisonment, at the discretion of the court.
WORKING ON THE WEEKENDS
Under Chapter 39.12 RCW, work performed on Saturday and Sunday is subject to overtime provisions for a given trade/occupation.
WORKING ON LEGAL HOLIDAYS
According to the WSPWA, where applicable, special holiday rates are established for each trade and occupation. Please See, wage determinations for applicable holidays per trade.
SHIFT DIFFERENTIALS
Washington prevailing wage law does not provide shift differentials per trade. However, CBAs may state shift differential rates that may vary by county and trade.
FRINGE (USUAL) BENEFITS
Pursuant to WA prevailing wage law, fringe benefits include:
- Contributions made by a contractor/subcontractor to a trustee/third person under a fund, plan or program.
- Employer payments for medical/hospital care
- Pensions on retirement/death
- Compensations for injuries/illness resulting from occupational activity
- Insurance to provide any of the following—unemployment benefits, life insurance, disability, sickness insurance, accident insurance, medical
- Vacation and holiday pay
- Approved apprenticeship/similar training programs
- And other bone fide fringe benefits
Benefits that are required by law (e.g., industrial insurance, social security) do not qualify as usual benefits. Employers must pay a wage and usual/fringe benefits package that adds up to the prevailing rate of wage. If the employer does not provide the usual fringe benefits, then the total prevailing wage rate must be paid as an hourly wage. Employer paid usual benefits cannot be applied to reduce the actual wage paid below the state minimum wage rate and the amount attributable to benefits must be calculated based on WSDLI methodology.
TRAINING CONTRIBUTIONS
“Usual benefits” include “apprentice training fund” which is payments made to training programs approved or recognized by the WSATC.
APPRENTICE REQUIREMNTS
Apprentice workers employed upon public works projects for whom an apprenticeship agreement has been registered and approved with the state apprenticeship council pursuant to chapter 49.04 RCW, must be paid at least the prevailing hourly rate for an apprentice of that trade. Any worker for whom an apprenticeship agreement has not been registered and approved by the state apprenticeship council shall be considered to be a fully qualified journey level worker, and, therefore, shall be paid at the prevailing hourly rate for journey level workers.
TRAVEL & SUBSISTENCE
Washington prevailing wage law does not compensate employees for travel time or subsistence. Please See, WAC 296-127-018 for dump truck travel time and 39.12.030 RCW for general information on travel time.
CONTRACTOR LICENSING
To perform construction work in Washington, contractors are required to register with the WA DOLI. Specifically, electricians and plumbers must be licensed. To determine whether a contractor, electrician or plumber is registered in Washington, please call (360) 902-5226.
Washington's Contractor Licensing Policy
DUTIES OF CONTRACTORS/SUB-CONTRACTORS
Maintaining Payroll Records
The employer is required to keep certain records in addition to the pay statement. Payroll records must be kept showing the name, address, Social Security number, trade or occupation, straight-time rate, hourly rate of usual benefits and overtime hours worked each day and week, including agreements to work up to 10-hour days, and the actual rate of wages paid. Upon receiving a written request from L&I, the awarding agency or an interested party, an employer must, within 10 days, submit Certified Project Payroll records to WSDLI and to the awarding agency. RCW 39.12.010(4) and WAC 296-127-320.
Wage Statements
Washington employment law requires that employers provide, with each employee’s paycheck, an itemized statement showing time worked, rates of pay, gross wages and a list of all deductions. The employee should not have to ask for this. It must be provided with each paycheck. WAC 296-126-040.
Contractual Obligations
Contractors and subcontractors must abide by the terms of their contracts. On public works projects, the contract will state that prevailing wages must be paid to the workers and will include a listing of the prevailing wage rates that apply to that contract or will direct the contractor to L&I’s URL for a list of applicable wage rates. Contractors and subcontractors are responsible for determining the correct worker classification(s) in order to ensure correct wages are paid. RCW 39.04.010, RCW 39.12.010, RCW 39.12.030 and WAC 296-127-011.
Turnkey Projects (lessee/lessor relationships between public and private parties)
Prevailing wages must be paid for any work, construction, alteration, repair or improvement that the state or a municipality causes to be performed by a private party through a contract to rent, lease, or purchase at least 50 percent of the project by one or more state agencies or municipalities. RCW 39.04.260 and WAC 296-127-010(7)(a)(iii).
Intent and Affidavit Forms
Every contractor and subcontractor on a public works project must individually submit Intent and Affidavit forms (approved and certified by L&I) to the agency administering the contract in order to receive payment. Intent forms should be filed prior to the start of work. Affidavits are filed after completion of the work. A contractor may file on behalf of another contractor only under a limited set of circumstances that includes a direct contractual relationship between the filing contractor and the non-filing subcontractor, and a nonresponsive subcontractor that has gone out of business or failed to file as required.
Approval and certification of Intent and Affidavit forms by the Industrial Statistician is based on the information provided on the forms. It signifies that the wage rates are listed correctly for the classifications indicated, but does not signify L&I approval of the classifications of labor used by the contractor. (RCW 39.04.155, RCW 39.12.040, WAC 296-127-040, WAC 296-127-045 and WAC 296-127-050).
Penalties–Failure to File or False Filing of a Statement/record
Following an WSDLI determination that a contractor or subcontractor filed a false statement or failed to file a statement or record required to be filed, the non-compliant contractor or subcontractor is subject to civil penalties and may be barred from bidding on public works contracts until the penalties have been paid. A contractor or subcontractor who files a false statement or fails to file a required statement or record for a second time within a five-year period will be barred from bidding on public works contracts for one year. RCW 39.12.050, WAC 296-127-150 and WAC 296-127-310.
Progress Payments
Voucher claims submitted for agency payment must include a certification that prevailing wages were paid by the contractor in accordance with the pre-filed statement or statements of intent to pay prevailing wages on file. RCW 39.12.040(1)(b).
Labor Classifications
All work performed under a public works contract must be classified into one or more of the many labor classifications for which prevailing wage rates have been established so that the appropriate wage can be applied. For example, workers installing sheet metal ducts are classified as Sheet Metal Workers, and receive the prevailing wage rate for that occupation. Contractors and subcontractors are responsible for ensuring that the proper classifications of labor are reported, and should take great care, since this is where many mistakes are made. Scope of work descriptions are available as a guide in determining which labor classification is appropriate. Any doubts or unresolved questions regarding the appropriate classifications of labor must be directed to the Prevailing Wage Program. RCW 39.12.010, RCW 39.12.015, RCW 39.12.020, RCW 39.12.060, RCW 39.12.065, WAC 296-127-013, WAC 296-127-0130 through 01396, WAC 296-127-019 and WAC 296-127-060.
Posting
An approved copy of the Intent form for each contractor and subcontractor must be posted at the job site prior to the commencement of work for contracts in excess of $10,000. If the Intent form is in the process of being approved by the Industrial Statistician, the complete listing of the prevailing wage rates for the county where the job site is located may be posted until the approved form is received. Failure to meet these posting requirements is a violation of Chapter 39.12 RCW. (RCW 39.12.020).
Payroll Records
Contractors and subcontractors must keep accurate payroll records for three years following the date of acceptance of the project by the awarding agency. Payroll records must show the name, address, Social Security number, trade or occupation, straight-time rate, hourly rate of usual benefits and overtime hours worked each day and week, including agreements to work up to 10-hour days, and the actual rate of wages paid. Upon receiving a written request from L&I, the awarding agency or an interested party, a contractor or subcontractor must, within ten days, submit Certified Project Payroll records to L&I and to the awarding agency. RCW 39.12.010(4) and WAC 296-127-320.
Payment of usual benefits
Employers must pay a wage and usual benefits package that adds up to the prevailing rate of wage. If an employer does not provide usual benefits, then the total prevailing wage rate must be paid as an hourly wage. Special overtime and holiday rates may also 12 be established for each trade and occupation. Contractors and employers must have and make available to L&I upon request, copies of all documents concerning usual benefits. Since employers are required by federal law to provide eligible employees with a Summary Plan Description (SPD) regarding certain pension plan benefits, typically the SPD (together with any pertinent Summary Material Modifications) and proof of deposits made will document payments for those benefits. In any event, employer-paid usual benefits cannot be applied so as to reduce the actual wage paid below the state minimum wage, and the amount attributable to benefits must be calculated consistent with L&I methodology.
PENALTIES
First Offense—Underpayment of prevailing wages
Contractor/subcontractor that violated the requirement to pay prevailing wages is subject to a civil penalty of not less than $1000 or an amount equal to 20% of the total prevailing wage violation found on the contract (whichever is greater) and is not permitted to bid, or have a bid considered, on any public works contract until such civil penalty has been paid in full to the director.
Second offense—Underpayment of prevailing wages
If a contractor or subcontractor is found to have participated in a violation of the requirement to pay the prevailing rate of wage for a second time within a five-year period, the contractor or subcontractor shall be subject to the sanctions prescribed in this subsection and as an additional sanction shall not be allowed to bid on any public works contract for two years. Please See, “Debarment” for additional information.
Contractor Strikes List
This is a list of contractors who received valid strike(s) for violation or infraction of prevailing wage law (RCW 39.12.050 or 39.12.065), contractor registration law, (chapter 18.27 RCW), industrial insurance law (RCW 51.48.020(1) or 51.48.103), or apprenticeship law (chapter 49.04 RCW). These strikes are used in determining whether the contractor is eligible to perform public works. The following explains how the strikes debar a contractor from public works:
- RCW 39.12.050: Failure to file or false filing of prevailing wage forms (Statement of Intent to Pay Prevailing Wages, Affidavit of Wages Paid, Certified Payroll Records). Two (2) violations of RCW 39.12.050 in a five (5) year period will result in a one (1) year debarment.
- RCW 39.12.065: Failure to pay workers the correct prevailing wage rate of pay. Two violations of RCW 39.12.065 in a five (5) year period will result in a two (2) year debarment.
Violation of any two of the following statutes within a five (5) year period will result in a one (1) year debarment:
- RCW 51.48.020(1): Misreporting of hours worked or misreporting of premiums paid to industrial insurance.
- RCW 51.48.103: Failure to obtain a certificate of coverage for industrial insurance.
- Chapter 18.27 RCW: Failure to comply with contractor registration requirements.
- Chapter 49.04 RCW: Determined to be out of compliance by the WSATC for working apprentices out of ratio, without appropriate supervision, or outside their approved work processes as outlined in their standards of apprenticeship.
Please See, “Helpful Links” below to access the list.
DEBARMENT
Pursuant to 39.04.350 RCW, contractors/subcontractors are debarred from bidding on public works construction projects. A contractor who is debarred may not bid on, or have a bid considered on, any public works contract. A contractor may be debarred for violations or infractions of prevailing wage law (chapter 39.12 RCW), contractor registration law (chapter 18.27 RCW), or industrial insurance law (chapter 51.48 RCW).
A contractor who receives a penalty for violation(s) of prevailing wage law (chapter 39.12 RCW) is debarred until all penalties as a result of the violation(s) are paid in full. A contractor who is determined by WSLI to owe workers unpaid prevailing wages under RCW 39.12.065 is debarred until the wages are paid in full. Additionally, depending on the violation, a contractor who receives 2 or more strikes within a 5-year period may be debarred for 1 or 2 years even if all penalties and/or wages owed are paid prior to that time. Please See, the “Contractor Strikes” section below.
A contractor will not be allowed to bid on any public works contract for one year from the date of a final determination that the contractor has committed any combination of two of the following violations/infractions within a five-year period:
- Violated RCW 51.48.020(1) or 51.48.103;
- Committed an infraction or violation under chapter 18.27 RCW for performing work as an unregistered contractor; or
- Determined to be out of compliance by the WSATC for working apprentices out of ratio, without appropriate supervision, or outside their approved work processes as outlined in their standards of apprenticeship under chapter 49.04 RCW.
A contractor or subcontractor cannot be barred from bidding on any public works contract if the contractor or subcontractor relied upon written information from the department to pay a prevailing rate of wage that is later determined to be in violation of this chapter.
Please See, “Helpful Links” for a list of debarred contractors.
HELPFUL LINKS
Debarred Contractors List
Contractor Strikes List
List of Apprenticeship Utilization Violators
Washington State Department of Labor and Industries Prevailing Wage Section
Prevailing wage rates
Journey Level prevailing wage rates
Apprentice prevailing wage rates
To receive prevailing wage updates by email: Prevailing Wage listserv OR change to a new email address
Worker classifications
Filing a wage complaint
Certified payroll form
Wage and hour survey
Schedule of surveys
Publication Correction Notification
Prevailing wage determination request
Affidavit of wages paid
Affidavit of wages paid Addendum B List of Next Tier Subcontractors
Affidavit of wages paid Addendum D
Affidavit of wages paid EHB 2805 Addendum
Interested party checklist for filing of prevailing wage complaints
Prevailing wage complaint and instructions
Statement of intent to pay prevailing wages
Statement of intent to pay prevailing wages—Addendum C
Instrucciones para el registro de una queja sobre salario prevaleciente
Washington State Prevailing Wage Law
Packet Guide to Workers Rights
Prevailing wage electronic mailing list
CONTACT INFORMATION
Prevailing Wage Support
Phone (wage rate information): (360) 902-5335
Surveys: (360) 902-4626
Wage Claims: (360) 902-5335
Fax: (360) 902-5300
Toll-Free Line: (855) 545-8163
General PW Email: [email protected]
Mailing Address
Department of Labor & Industries
Prevailing Wage Section
PO BOX 45540
Olympia, WA 98504-4540
Physical Address
7273 Linderson Way SW
Tumwater, WA 98501
