Applicability of the prevailing wage law; the thresholds for applicability of that law; calculation of the prevailing wage rate; the treatment of volunteers, truck drivers, subjourneypersons, and incidental work under that law; the submission to the Department of Workforce Development of payroll records of persons performing work that is subject to that law; the inspection of those records; and the remedies for a violation of that law

Specifically, with respect to altering or eliminating changes made by 2009 Wisconsin Act 28 :

1.

Publicly funded private construction projects, turnkey projects, and acquired or dedicated projects.

2009 Wisconsin Act 28 expanded the applicability of the prevailing wage law to cover publicly funded private construction projects that receive $1,000,000 or more in direct financial assistance from a local governmental unit. Under prior law, only projects of public works contracted for by the state or a local governmental unit were subject to the prevailing wage law. This bill eliminates coverage of publicly funded private construction projects under the prevailing wage law, so that under the bill only projects of public works are covered under the prevailing wage law.

2009 Wisconsin Act 28 specified that the prevailing wage law applies to: 1) a project in which the completed facility is leased, lease purchased, or otherwise acquired by, or dedicated to, a local governmental unit or the state in lieu of the local governmental unit or the state contracting for the erection, construction, repair, remodeling, or demolition of the facility (turnkey project); and 2) a road, street, bridge, sanitary sewer, or water main project in which the completed road, street, bridge, sanitary sewer, or water main is acquired by, or dedicated to, a local governmental unit or the state, for ownership or maintenance by the local governmental unit or the state (acquired or dedicated project). This bill specifies that the prevailing wage law does not apply to a turnkey project or to an acquired or dedicated project.

2.

Threshold for applicability to public works projects.

2009 Wisconsin Act 28 lowered the threshold for applicability of the prevailing wage law to a project of public works so that a project of public works for which the estimated project cost of completion is below $25,000 is not subject to that law. The act also eliminated the authority of DWD to adjust that threshold based on changes in construction costs.

Under prior law, that threshold was $234,000 for a multiple-trade project of public works and $48,000 for a single-trade project of public works and DWD was authorized to adjust those amounts annually based on changes on construction costs.

This bill sets the threshold for applicability of the prevailing wage law to a single-trade project of public works at an estimated project cost of completion of $50,000 and the threshold for applicability of that law to a multiple-trade project of public works at an estimated project cost of completion of $250,000. The bill, however, does not restore the authority of DWD to adjust those thresholds.

3.

Submission of payroll records.

2009 Wisconsin Act 28 required contractors performing work on a project of public works or a publicly funded private construction project that is subject to the prevailing wage law to submit to DWD on a monthly basis, in electronic format, certified records indicating the name and trade or occupation of every person performing work that is subject to the prevailing wage law and an accurate record of the number of hours worked by each of those persons and the actual wages paid for those hours worked (payroll records) or, if all persons performing work on the project are covered under a collective bargaining agreement that provides for wage rates that are not less than the prevailing wage rate, to submit to DWD during the first month of the project, in electronic format, copies of all collective bargaining agreements pertaining to the project. This bill eliminates that requirement.

4.

Inspection of payroll records.

2009 Wisconsin Act 28 required DWD to charge a person who requests DWD to inspect a contractor's payroll records for the purpose of ensuring compliance with the prevailing wage law the actual cost of the inspection if the contractor is found to be in compliance with that law and if the request is found to be frivolous. Prior law required DWD to charge that cost if the contractor was found to be in compliance with the prevailing wage law, but did not require the additional finding that the request was frivolous. This bill eliminates that additional finding so that under the bill DWD must charge for the cost of inspecting a contractor's payroll records if the contractor is found to be in compliance with the prevailing wage law, whether or not the request is frivolous.

5.

Remedies for a violation of the prevailing wage law.

2009 Wisconsin Act 28 permitted DWD to order a contractor who failed to pay the prevailing wage rate to pay to any affected employee the amount of unpaid wages due, plus 100 percent of that amount as liquidated damages. Prior law permitted only a court to order that payment and permitted that payment to be ordered only to an employee employed on a local project of public works, not to an employee employed on a state project of public works. This bill eliminates the authority of DWD to order that payment so that under the bill only a court may order that payment and permits that payment to be ordered only to an employee employed on a local project of public works, not to an employee employed on a state project of public works.

Finally, the bill makes changes to certain areas of the prevailing wage law that were not substantially affected by 2009 Wisconsin Act 28 . Specifically:

1.

Statewide concern; uniformity.

The bill states that the enactment of prevailing wage ordinances or other enactments by local governmental units would be logically inconsistent with, would defeat the purpose of, and would go against the spirit of the state prevailing wage law. Therefore, as an enactment of statewide concern for the purpose of providing a uniform prevailing wage law throughout the state, the bill prohibits local governmental units from enacting prevailing wage ordinances or other enactments and provides that a local prevailing wage ordinance or other enactment that is in effect on the day before the effective date of the bill is void.

2.

Calculation of prevailing wage rate.

Under current law, "prevailing wage rate" is defined as the hourly basic rate of pay, plus the hourly contribution for bona fide economic benefits, paid for a majority of the hours worked in a trade or occupation in an area, except that, if there is no rate at which a majority of those hours is paid, "prevailing wage rate" means the average hourly basic rate of pay, plus the average hourly contribution for bona fide economic benefits, paid for the highest 51 percent of hours worked in a trade or occupation in the area. Current law defines "bona fide economic benefit" as an economic benefit for which an employer makes irrevocable contributions or escrow payments at least quarterly.

This bill defines "prevailing wage rate," when there is no rate at which a majority of the hours worked in a trade or occupation in an area is paid, as the average hourly basic rate of pay, plus the average hourly contribution for bona fide economic benefits, paid for all hours worked in a trade or occupation in the area. The bill also deletes the definition of "bona fide economic benefit."

3.

Nonapplicability to small municipalities and residential properties.

The bill exempts from the prevailing wage law a project of public works contracted by a city, village, or town having a population of less than 10,000 and a project of public works involving the erection, construction, repair, remodeling, or demolition of a residential property containing two dwelling units or less.

4.

Treatment of volunteers, truck drivers, subjourneypersons, and incidental work.

Under current law, the prevailing wage law does not apply to a project of public works in which the labor for the project is provided by unpaid volunteers. This bill provides that the prevailing wage law does not apply to work performed on a project of public works for which the local governmental unit or state agency contracting for the project is not required to compensate any contractor, subcontractor, contractor's or subcontractor's agent, or individual for performing the work.

Under current law, the prevailing wage law does not apply to a truck driver who is regularly employed to pick up or deliver materials or products from a commercial establishment that has a fixed place of business from which the establishment regularly supplies processed or manufactured materials or products unless: 1) the truck driver is employed to pick up mineral aggregate from its source and deliver that aggregate to the site of a project of public works; or 2) the truck driver is employed to pick up excavated material from the site of such a project and transport that material away from that site. This bill provides that the prevailing wage law does not apply to a truck driver who is employed to pick up and deliver mineral aggregate to the site of a project of public works or to pick up and transport excavated material away from such a site.

The bill also permits a contractor, subcontractor, or contractor's or subcontractor's agent to employ a subjourneyperson on any project that is subject to the prevailing wage law. The bill defines a "subjourneyperson" as a worker, other than an apprentice, laborer, heavy equipment operator, or truck driver, who primarily works under the direction of, and who assists, a skilled trade employee by frequently using the tools of a specific trade.

Finally, the bill permits a contractor performing work on a project to which the prevailing wage law applies to employ a worker in incidental work outside of the worker's usual trade or occupation for not more than 25 percent of the hours worked by the worker in a workweek.