Washington State Prevailing Wages on Public Works Act Overview

Prevailing Wages on Public Works Act (Revised Code of Washington Chapter 39.12) is designed to protect construction workers from being underpaid on public projects by requiring that they be paid prevailing wages. While the Law applies to all construction projects receiving public funding, this guide will focus specifically on renewable energy construction projects.

Importantly, the Law applies regardless of the amount of public funding involved or how those funds are delivered, whether through Washington’s Clean Energy Fund or a separate method.

Additionally, any privately funded construction project becomes subject to prevailing wage requirements if a government agency agrees to rent, lease, or purchase 50% or more of the project.

In summary, there are two ways a construction project can become subject to prevailing wage requirements:
(1) If the project receives any public funding (regardless of size or delivery method).
(2) If 50% or more of the project is rented, leased, or purchased by a government agency after the completion of construction.

Only work involving construction, reconstruction, maintenance, or repair activities on the project is subject to prevailing wage requirements.

According to the Revised Code of Washington Chapter 39.12 text, construction, maintenance, or repair activities include (but are not limited to):
• Building service maintenance (janitorial) contracts
• Landscape construction and grounds maintenance
• Small projects (no minimum dollar amount) such as maintenance and repairs including “small works” roster contracts
• Off-site work such as custom fabrication for the public works project
• Contractors subcontracting out all work

Additionally, in order to bid on a prevailing wage project, it is a pre-requisite that all contractors and subcontractors are a "responsible bidder." This means that all contractors and subcontractors must:

(1) Have a Valid Unified Business Identifier (UBI).
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(2) Have a contractor's registration/license.

(3) Have industrial insurance coverage for all employees.

(4) Not be currently debarred from bidding on public projects with prevailing wage requirements.

(5) Attend L&I training on public works and prevailing wage Law unless the contractor has been in business for 3+ years and completed 3+ public works projects.

Compliance with prevailing wage requirements is necessary in order to be paid any public funds. Proper compliance guidelines are as follows:

(1) Create a My L&I account (linked below) and set up PWIA Portal access.

(2) File the "Statement of Intent to Pay Prevailing Wages" document directly following the contract being awarded via the PWIA Portal. This document asks basic questions about the project.

(3) Post the "Statement of Intent to Pay Prevailing Wages" document on the job site in a conspicuous location.

(4) Maintain weekly Certified Payroll Reports that must be submitted at least monthly via the PWIA Portal. Additionally, this implies that the contractor and/or subcontractor(s) must pay the proper prevailing wage rates listed in the Washington State Department of Labor and Industries Prevailing Wage Database (linked below).

(5) After the completion of all construction work, the "Affidavit of Wages Paid" document (which states the work completed and wage rates that were paid) must be filed via the PWIA Portal.

(6) The contractor must check on all subcontractors to ensure they have completed all required forms via the PWIA Portal.

If a contractor is found to have failed to pay prevailing wages, the Department of Labor and Industries will assess the following penalties:

(1) A fine of $5,000 or 50% of the total prevailing wage violation (whichever is greater).

(2) Full back pay owed, plus interest accrued at 1% per month.

(3) Temporary disqualification from bidding on public works contracts until all penalties and back wages are paid in full.

If a contractor is found to have violated prevailing wage requirements for a second time within five years of a prior violation, they will be barred from bidding on any public works contracts for two years, beginning on the date they are notified of the new violation.

There is also an alternate resolution method after a complaint is filed. If a contractor pays unpaid wages (with 1% interest per month), and a $1,000 or 20% penalty (whichever is greater) before a notice of violation is issued from the Department of Labor and Industries, the violation is considered resolved without full penalties. This alternative resolution method may only be used once during a five-year period. If this resolution method is used more than once in a five-year period, the penalties listed above apply.

• Create a My L&I Account

• Washington State Department of Labor and Industries Prevailing Wage Database