SB 540

Prevailing wage

This bill requires that laborers, workers, mechanics, and truck drivers

employed on the site of certain projects of public works be paid the prevailing wage

and not be required or allowed to work a greater number of hours per day and per

week than the prevailing hours of labor unless they are paid overtime for all hours

worked in excess of the prevailing hours of labor. Projects subject to the bill include

state and local projects of public works, including state highway projects, with

exceptions including projects below certain cost thresholds, minor service or

maintenance work, and certain residential projects. Under the bill, “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 the area in which the project is located, 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-paid 51 percent of hours worked in a trade or

occupation in the area. “Prevailing hours of labor" is defined as 10 hours per day and

40 hours per week, excluding weekends and holidays. The bill requires the

Department of Workforce Development to conduct investigations and hold public

hearings as necessary to define the trades or occupations that are commonly

employed on projects that are subject to the prevailing wage law and to inform itself

of the prevailing wage rates in all areas of the state for those trades or occupations,

in order to determine the prevailing wage rate for each trade or occupation. The bill

contains certain other provisions regarding the calculation of prevailing wage rates

by DWD, including provisions allowing persons to request recalculations or reviews

of the prevailing wage rates determined by DWD.

The bill requires contracts and notices for bids for projects subject to the bill to

include and incorporate provisions ensuring compliance with the requirements. The

bill also establishes a requirement that state agencies and local governments post

prevailing wage rates and hours of labor in areas readily accessible to persons

employed on the project or in sites regularly used for posting notices.

The bill makes a contractor that fails to pay the prevailing wage rate or

overtime pay to an employee as required under the prevailing wage law liable to the

affected employee for not only the amount of unpaid wages and overtime pay, but also

for liquidated damages in an amount equal to 100 percent of the unpaid wages and

overtime pay.

Finally, the bill includes, for both state and local projects of public works,

provisions regarding coverage, compliance, enforcement, and penalties, including 1)

requirements for affidavits to be filed by contractors affirming compliance with the

prevailing wage law; 2) record retention requirements for contractors regarding

wages paid to workers and provisions allowing for the inspection of those records by