Proposed changes to the process for setting the prevailing wage, contesting it, and reflecting it in public works contracts were revised and refined again last week, then unanimously adopted by the Senate.
Among several other provisions, SB 5726 requires that wages paid to laborers of public works will
be no less than the latest prevailing wage rate in effect at the time the work is performed. For background, check out our previous summary of the bill.
During consideration of the bill on the Senate floor last week, the sponsor, Sen. Curtis King (R–Yakima), proposed a suite of changes that were subsequently adopted. In its present form, SB 5726 provides that:
- The industrial statistician must consider the applicable collective bargaining agreements and may seek input from the labor management signatory parties regarding which rate is the majority rate, or the rate representing the most workers in the same
occupation in the event there is no majority.
- An interested party may appeal a determination by the industrial statistician using evidence that the actual rate used in the determination is not the rate representing the majority of workers in the same occupation under the collective bargaining
agreements.
- Except for small works roster contracts, public works contracts must stipulate that the wage rate be adjusted to no less than the latest rate in effect at the time the work is performed.
- This requirement does not apply to housing projects where at least 50% of the residential units are made available for low-income housing, or to residential construction.
- Through the end of 2029, cost increases directly resulting from wage adjustments of the prevailing wage under the bill are a good cause justification for the contractor of any level affected by the increase to require a financial adjustment
to their contract for the following scopes of work:
- Carpenters
- Cement masons
- Laborers
- Power equipment operators
- Teamsters
The amendments reflect negotiations between labor and contractor advocates. AWC and other local government stakeholders continue to advocate for remedies that address concerns related to excessive change orders that would result from the legislation.
Having passed off the Senate floor, SB 5726 is next slated for a hearing in the House.