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Prevailing Wage Legislation

October 2006

18 states are considering legislation in 2006 regarding prevailing wage. To date, 6 states (Illinois, New Jersey, Rhode Island, Virginia, Washington, and Wisconsin) have passed legislation in 2006.

In New York, a number of Prevailing Wage bills were vetoed.  Some of bills proposed increasing notification requirements to employees and reporting duties of employers.  These bills were vetoed because they placed onerous burdens on the employers while not providing significant benefits beyond the existing requirements.

State

Bill

Summary

Last Action

California

AB 364

Exempts those public works financed through the use of industrial development bonds under the California Industrial Development Financing Act from compliance with those laws relating to payment of prevailing wages.

Died, 01/31/06

 

AB 474

Requires the Director of Industrial Relations to factor in studies regarding wages paid in rural areas in determining the general prevailing rate of per diem wages.

Died, 01/31/06

 

AB 1192

Exempts from the definition of public work and the prevailing wage requirements the construction, expansion, or rehabilitation of affordable housing units for low- and moderate-income persons, performed by a nonprofit organization.

Died, 01/31/06

 

AB 1371

Changes the general definition of public work for the purposes of payment of prevailing wages.

Died, 01/31/06

 

AB 1927

Amends existing law that requires the obliteration of an employee's name, address and social security number from payroll records when the records are provided for inspection to the public or a public agency. Requires the obliteration of such records when they are provided for inspection to a joint labor-management committee

From Assembly Committee on Labor and Employment without further action, 05/17/06

 

AB 2019

Amends existing law that requires the Director of Industrial Relations to determine the general prevailing rate of per diem wages to factor in either surveys regarding wages paid in rural areas, on an index for prevailing wages.

From Assembly Committee on Labor And Employment without further action, 06/26/06

 

AB 2331

Excludes from specified prevailing wage requirements any project that is funded in whole or in part by a qualified transfer by a city, county, or redevelopment agency of qualified real property to a nonprofit corporation.

In Assembly Committee on Labor And Employment reconsideration granted, 04/19/06

 

AB 2493

Makes technical, non-substantive changes to existing law that generally requires the payment of the prevailing rate of per diem wages and the prevailing rate for holiday and overtime work to employees employed on a public work that costs more than $1,000.

In Senate Committee on Labor and Industrial Relations: Reconsideration Granted, 06/28/06

Connecticut

HB 5741

Increases the prevailing wage thresholds.

Failed Joint Favorable deadline, 03/10/06

 

SB 560

Extends the prevailing wage to certain construction projects receiving public financial assistance; extends prevailing wage requirements to new construction projects receiving public financial assistance of one million dollars or more.

To Joint Committee on Commerce, 04/18/06

Hawaii

HB 2641

Requires a construction project owner who undertakes a construction project to be used by the State or a county to sign a lease agreement that certifies compliance with the State's public works prevailing wage law.

Governor Vetoed, 07/11/06

 

HB 2691

Allows a joint labor-management committee established pursuant to the federal Labor Management Cooperation Act of 1978 to institute an action for injunctive and other relief against an employer that fails to pay its employees the prevailing wage.

Governor Vetoed, 07/11/06

 

HB 2692

Requires that, for public works projects that are not directly caused by a governmental contracting agency, the department of labor and industrial relations be the responsible agency for ensuring compliance with the State's prevailing wage law.

Governor Vetoed, 07/11/06

 

HB 2952

Requires the Department of Labor and Industrial Relations to enforce Hawaii's prevailing wage law through the collection and maintenance of certified copies of all payrolls for public work projects.

Passed Senate, 04/11/06

 

HB 2953

Makes it the responsibility of the chief procurement officer to inform governmental contracting agencies of the requirements and applicability of Hawaii's prevailing wage law.

To Senate Committee on Transportation and Government Operations, 03/09/06

 

SB 935

Requires any state funded construction projects to establish certified payroll and compliance of the Davis Bacon Act

Senate received notice of appointment of House conferees, 04/17/06

 

SB 2839

Exempts contractors, consultants, and their employees hired on a project funded by the Hawaii 3R's Program from the state prevailing wage law, if the work provided is at no cost or at a reduced rate.

Senate Committee on Education and Military Affairs deferred the measure, 02/13/06

 

SB 3014

Requires a construction project owner who undertakes a construction project to be used by the State or a county to sign a lease agreement that certifies compliance with the State's public works prevailing wage law.

Additionally Referred To Senate Committee on Labor, 01/30/06

 

SB 3015

Requires that, for public works projects that are not directly caused by a governmental contracting agency, the Department of Labor and Industrial Relations be the responsible agency for ensuring compliance with the State's prevailing wage law.

Additionally Referred To Senate Committee on Transportation And Government Operations, 01/30/06

 

SB 3016

Allows a joint labor-management committee established pursuant to the federal Labor Management Cooperation Act of 1978 to institute an action for injunctive and other relief against an employer that fails to pay its employees the prevailing wage.

Additionally Referred To House Committee on Economic Development And Business Concerns, 03/09/06

 

SB 3030

Makes it the responsibility of the chief procurement officer to inform governmental contracting agencies of the requirements and applicability of Hawaii's prevailing wage law.

Senate Committee on Transportation And Government Operations deferred the measure, 02/06/06

 

SB 3034

Requires indirect public works project to comply with the law relating to prevailing wages in public works projects.

Additionally Referred To House Committee on Economic Development And Business Concerns, 03/09/06

Illinois

HB 2113

Amends the Prevailing Wage Act. Provides that Laborers, workers, and mechanics who are paid a set amount for the truck expense and take-home wage and who are deemed to be employed on the public works project are entitled to the proper prevailing wage for the equipment being operated.

In House, Read third time; Failed to pass, 03/30/06

 

HB 5270

Provides that a public body or other entity covered by the Act that contracts for work with a contractor or subcontractor without a public bid or project specification shall provide the contractor or subcontractor with a prevailing wage notice on the project on the purchase order or on a separate document.

To House Committee on Rules, 01/25/06

 

SB 2261

Provides that the Prevailing Wage Act applies to any maintenance, repair, assembly, or disassembly work performed on equipment whether owned, leased, or rented.

To Senate Committee on Rules, 01/11/06

 

SB 2364

Provides that the exemption from the Act for suppliers, sellers, or manufactures, when applied to transportation of aggregate materials including, but not limited to, sand and gravel, asphalt, or concrete, shall apply only to employees of those same suppliers, sellers, or manufactures who are engaged in the transportation of those materials and does not extend to any third parties.

To Senate Committee on Rules, 01/18/06

 

SB 2398

Provides that workers at a facility dedicated exclusively, or nearly so, to performance of the contract or project and located in such proximity to the actual construction location that it would be reasonable to include them, or that perform work specifically designated for installation on a public works project, shall be deemed to be employed on public works.

To Senate Committee on Rules, 01/18/06

 

SB 2399

Provides that the certified payroll submitted monthly by a contractor or subcontractor may exclude the starting and ending times of work each day.

Signed by Governor, Act 1023,07/12/06

 

SB 2452

Makes a technical change concerning construction of the Prevailing Wage Act.

To Senate Committee on Rules, 01/18/06

 

SB 3046

Amends the Public Utilities Act. Provides that in the event of a transfer of ownership of a water system, the water utility's contract or agreements must require that the acquiring entity hire a sufficient number of non-supervisory employees to operate and maintain the water system at no less than the wage rates, and substantially equivalent fringe benefits and terms and conditions of employment that are in effect at the time of transfer.

Signed by Governor, Act 1007,07/03/06

Kentucky

HB 64

Exempts educational institutions from paying prevailing wages on construction projects

To House Committee on Labor And Industry, 01/03/06

 

HB 217

Removes prevailing wage requirements from urban renewal and community development agency contracts for work. Eliminates definitions relating to prevailing wages and penalties for prevailing wage violations at the state level.

In House Committee on Labor and Industry posting withdrawn, 03/07/06

Maryland

SB 27

Increases to a certain amount the percentage of State money that must be used in an elementary or secondary school construction project before the Prevailing Wage Law applies

Hearing Set, 02/01/06

Massachusetts

HB 3806

Clarifies the prevailing wage law.

To House Committee on Ways And Means, 03/06/06

 

HB 4885 (HD 5083)

Requires that energy savings contracts be in compliance with the prevailing wage law

To House Committee on Ways and Means 05/10/06

Minnesota

HF 3593 / SF 3672

Modifies the prevailing wage determination method

To House Committee on Jobs And Economic Opportunity Policy And Finance, 03/16/06;
To Senate Committee on Jobs, Energy and Community Development, 03/30/06

 

HF 3755 / SF 3406

Regulates payment of prevailing wages

To House Committee on Jobs And Economic Opportunity Policy And Finance, 03/21/06;
To Senate Committee on Jobs, Energy and Community Development, 03/22/06

 

HF 3841 / SF 3558

Declares it to be the policy of the state of Minnesota that a wage of no less than the prevailing hourly rate of wages for work of a similar character in the locality in which the work is performed shall be paid to all workers employed by or on behalf of any public body engaged in public works

Withdrawn from House Committee on Jobs and Economic Opportunity Policy and Finance, 03/30/06;
To Senate Committee on Jobs, Energy and Community Development, 03/27/06

Missouri

HB 1481

Exempts work done on a school from the prevailing wage rate requirement if approved by the school board.

Public Hearing Completed, 02/08/06

 

HB 1498

Creates the Fairness in Public Construction Act; provides that upon completion of construction work there must be an affidavit stating that the project had paid all covered employees the prevailing rates specified for the public work

From House Committee on Rules, 03/07/06

 

HB 1811

Exempts work done on a school from the prevailing wage rate requirement in a school district from a non-chartered county if approved by the school board

In House Committee on Rules Action Postponed, 04/06/06

 

HB 1929

Allows public entities to opt-out from the prevailing wage if the cost of the project is $750,000 or less

To House Committee on Jobs Creation and Economic Development, 05/12/06

New Jersey

AB 1766

Includes custom fabrication work under the prevailing wage act.

To Assembly Committee on Labor, 1/10/06

 

AB 1788

Requires that timely notice of allegations of prevailing wage violations be given to contractors.

To Assembly Committee on Labor, 01/10/06

 

AB 3026

Extends prevailing wage requirements to projects of county bridge commissions

To Assembly Committee on Labor, 05/15/06

 

AB 4161

Establishes prevailing wage standards and requirements for State building service contracts.

Chapter No. 379, 01/12/06

  SB 2117

Relates to the Property Tax Relief Act; exempt local contracting units from the “New Jersey Prevailing Wage Act” when making awards for a local public contract

To Senate Committee on Community and Urban Affairs, 07/07/06

New York

AB 336

Establishes prevailing wage standards and requirements for industrial development agencies.

To Assembly Committee on Local Governments, 01/04/06

 

AB 945 / SB 772

Defines lowest responsible bidder for purposes of the prevailing wage law.

Amended in Assembly Committee on Codes, 03/07/06;
Amended in Senate Committee on Labor, 03/07/06

 

AB 1193

Provides for the prevailing rate of wage for certain work performed and compensated by employees of the port authority of New York and New Jersey.

To Assembly Committee on Ways And Means, 03/07/06

 

AB 2578 / SB 4549

Requires contractors and subcontractors give written notification to workers employed on public work projects of the right to receive prevailing wages; stipulates certain other notice and posting requirements.

Substituted by SB 4549, 05/25/05;
Governor Vetoed, 10/11/05

 

AB 2676 / SB 4881

Creates an action for damages against a contractor for failure to pay prevailing wages or taxes, contributions, assessments, or benefits.

To Senate Committee on Labor, 02/08/06;
To Senate Committee on Labor, 01/04/06

 

AB 3279 / SB 3096

Expands prevailing wage legislation to charter schools and requires them to abide by laws pertaining to advertising for bids, letting of contracts, and criminal conspiracies in municipal contracting; expands scope of prevailing wage provisions to leases, grants, bonds, covenants, debt agreements, or permits.

To Assembly Committee on Labor, 01/04/06;
To Senate Committee on Labor, 01/04/06

 

AB 4040 / SB 4857

Provides for additional penalties for failure to pay prevailing wages or supplements.

To Senate Committee on Rules, 06/13/06;
To Senate Committee on Rules, 06/23/06

 

AB 4513 / SB 2252

Creates the office of the prevailing wage fraud inspector general for increased vigilance in the effort to achieve prevailing wage enforcement.

To Assembly Committee on Labor, 01/04/06;
To Senate Committee on Labor, 01/04/06

 

AB 6579 / SB 5410

Relates to the inclusion of certain off-site custom fabrication as public work for the purposes of payment of prevailing wage

Substituted by SB 5410, 06/06/05;
Governor Vetoed, 10/18/05

 

AB 6622 / SB 5464

Requires certain supervisors to maintain a daily headcount on all workers for all contracts requiring prevailing wage rates.

Substituted by SB 5464, 06/20/05;
Governor Vetoed, 09/16/05

 

AB 6624 / SB 3285

Provides that utility companies or their contractors shall use competent workers and shall pay the prevailing wage on projects where a permit to use or open a street is required to be issued.

From Assembly Committee on Rules, 02/28/06;
To Senate Committee on Labor, 01/04/06

 

AB 6627 / SB 3282

Requires submission of list of independent contractors with $10 fee to fund the enforcement and prosecution of violations of prevailing wage laws.

Substituted by SB 3282, 05/31/05;
Governor Vetoed, 08/30/05

 

AB 6904 / SB 6879

Makes various provisions to reform local development corporations and industrial development agencies: conflicts of interest, standard tax exemption policies, municipal input, more information to be made public, economic impact statements, public hearings, and payment of prevailing wages.

To Assembly Committee on Local Governments, 03/29/06;
To Senate Committee on Corporations, Authorities And Commissions, 03/02/06

 

AB 8057 / SB 6641

Relates to contractors who continually use sub- contractors who fail to pay the prevailing wage.

Substituted by SB 6641, 06/22/06;
Governor Vetoed, 07/26/05

 

AB 9879

Requires prevailing wages be paid on all public works projects.

To Assembly Committee on Labor, 02/07/06

 

AB 9880

Fines municipalities which fail to enforce prevailing wage paid by contractors on public works projects.

To Assembly Committee on Labor, 02/07/06

 

AB 10214

Requires public work contractors and subcontractors employing owner-drivers on public work projects to pay the prevailing rate of wage, provide appropriate supplements and provide workers' compensation and disability coverage to such drivers.

To Assembly Committee on Labor, 03/08/06

 

AB 10642 / SB 3381

Requires the payment of prevailing wages on construction projects involving the state university of New York, the dormitory authority or the state university construction fund and any third party.

To Assembly Committee on Labor, 04/07/06;
To Assembly Committee on Labor, 02/15/06

 

AB 10846 / SB 7654

Enacts the "Prevailing wage enforcement act of 2006"; designates as felonies certain violations by primary contractors and subcontractors of minimum wage provisions on public works projects; authorizes a district attorney or the attorney general to request payroll records from contractors and subcontractors on public works projects

To Assembly Committee on Codes, 05/02/06;
To Assembly Committee on Codes, 06/20/06

 

AB 11291 / SB 8309

Requires contractors and subcontractors give written notification to workers employed on public work projects of the right to receive prevailing wages; stipulates certain other notice and posting requirements

Governor Vetoed, 07/26/05;
Substituted by AB 11291, 06/21/06

 

SB 7468

Relates to the inclusion of certain off-site custom fabrication as public work for the purposes of payment of prevailing wage

To Senate Committee on Rules, 06/23/06

Ohio

HB 521

Specifies that, for certain public improvements, the Prevailing Wage Law only applies if the public improvements are funded not less than 50% by public money.

To House Committee on Rules And Reference, 02/22/06

Pennsylvania

HB 2682

Amends the Pennsylvania Prevailing Wage Act of 1961. Provides for remedies and penalties

To House Committee on Labor Relations, 05/15/06

  HB 3003

Relates to public works contracts; provides for prevailing wages

To House Committee on State Government, 10/05/06

Rhode Island

HB 7335 / SB 2819

Raises the threshold for municipal projects which require a prevailing wage pay rate from one thousand dollars to twenty-five thousand dollars.

To House Committee on Finance, 02/15/06;
Continued, 04/05/06

 

HB 7914 / SB 920

Requires any contractor who is awarded a public works contract after July 1, 2006 to ascertain the prevailing wage rate and make the necessary adjustments.

Governor Vetoed, 07/11/05;
To House Committee on Labor, 06/24/05

 

HB 7915 / SB 2660

Increases fines, and would permit the Department of Labor and Training to fine violators of the prevailing wage law without court action.

In House Committee on Labor, 03/29/06;
Effective without Governor’s Signature, Chapter 359, 07/07/06

 

HB 7950

Subjects persons seeking a tax credit for rehabilitation expenditures on certified historic structures to the prevailing wage statute.

Continued, 05/24/06

 

HB 8203

Increases fines, and permits the Department of Labor and Training to fine violators of the prevailing wage law without court action. Gives the Department of Labor and Training discretion when imposing civil penalties for violations of the prevailing wage law

Effective without Governor’s Signature, Chapter 503, 07/07/06

 

SB 2655

Requires any contractor who is awarded a public works contract after July 1, 2006 to ascertain the prevailing wage rate and make the necessary adjustments.

Governor Vetoed, 07/11/05

 

SB 2954

Makes amounts for qualified rehabilitation expenditures over $1,000 subject to the prevailing wage and payments on behalf of an employer.

Senate Committee on Finance recommends passage, 04/06/06

 

SR 2479

Creates a seven (7) member special senate commission whose purpose it would be to study the state trades classifications pay scales and prevailing wage rates

Adopted by Senate, 03/21/06

Virginia

SB 109

Makes several changes to the Governor's Development Opportunity Fund; requires that, as a condition of an award from the Fund, the average wage of new jobs created must be no less than the prevailing average wage in the county or city of the economic development project

Chapter 890, 04/19/06

Washington

SB 5236

Provides additional funding to the Prevailing Wage Program of the Department of Labor and Industries.

Signed by Governor, Chapter 230, 03/27/06

West Virginia

HB 2060

Exempts public works projects receiving federal assistance and subject to federal labor standards from the state prevailing wage laws.

To House Committee on Judiciary, 01/11/06

 

HB 2972

Exempting construction performed on behalf of county and municipal governments from prevailing wage requirements.

To House Committee on Industry And Labor, Economic Development And Small Business, 01/11/06

 

HB 3267

Exempts construction performed on behalf of educational authorities from prevailing wage requirements.

To House Committee on Industry And Labor, Economic Development And Small Business, 01/11/06

Wisconsin

 
AB 442 Relates to the determination of prevailing wage rates and prevailing fringe benefit rates for workers employed on state or local projects of public works and granting rule-making authority Failed to pass, 07/18/06

 

AB 736

Relates to drug and alcohol testing of employees who are required to be paid the prevailing wage rate for work performed on projects of public works, other than state highway projects.

Signed by Governor, Act 181, 03/23/06

 

SB 220

Relates to the determination of prevailing wage rates and prevailing fringe benefit rates for workers employed on state or local projects of public works and granting rule-making authority

Failed to pass, 07/18/06
 

SB 545

Relates to inspection of the payroll records of contractors, subcontractors, and agents performing work on projects that are subject to the prevailing wage law.

Failed to pass in Senate Committee on Job Creation, Economics Development And Consumer Affairs, 05/11/06

Source: LexisNexis bill tracking of StateNet database, copyright StateNet, Information for Public Affairs.

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