PREVAILING WAGE AND DAVIS-BACON

BACKGROUND -- The Davis-Bacon Act, at both the federal and state levels, was designed to outlaw wage exploitation in public construction contracts by preventing the undercutting of local standards.

Because public works contracts go to the lowest bidder, lawmakers decided it was in the best interest of the government and working families to make sure tax dollars are not spent on fly-by-night contractors that pay substandard wages to obtain contracts.  So "prevailing wage" standards were established, set by scientific surveys of actual wages paid in local communities, and anyone awarded a government contract must pay at least those prevailing wages.

Critics say they are outdated laws that force the government to pay more than is necessary.  But those who would throw out or weaken prevailing wage laws have failed to succeed. 

LABOR’S POSITION -- The Washington State Labor Council is very concerned that our state’s prevailing wage law be preserved, if not strengthened, to protect workers, communities and government.  When our tax dollars are spent on public construction, family-wage jobs should be maintained or created, and superior work should be expected.

"Low-balling" contractors that pay substandard wages are more likely to have less-experienced or poorly trained workers (and often bring them in from out-of-state).  We should not reward them with public contracts.

There is no evidence that prevailing wage laws result in higher costs for the government.  In fact, studies show they save money.

The WSLC will aggressively oppose attempts to weaken our state’s "Little Davis-Bacon" law or to exempt certain public projects from prevailing wage standards.  When contractors compete on the basis of skill and productivity, we all benefit.  When they compete to have the lowest wages or labor standards, we all lose.

1999-2000 -- HB 3106 would exempt common school construction from prevailing wage laws. Died in the House. 
-- SB 6590 would exempt small cities from prevailing wage laws. Died in Senate. 
-- SB 6786 would exempt federal-aid highway projects from prevailing wage laws. Died in Senate.
-- SB 6506 would exempt small counties from prevailing wage laws. Died in Senate.

2001-2002 -- HB 1589 would provide exemption of prevailing wage laws for rural county public works. Died in the House. 
-- HB 2213 would exempt transportation projects from prevailing wage laws. Died in the House.
-- HB 1137 and SB 5927 monetary penalties required for prevailing wage settlements on public works projects. Did not pass out of either house.
-- HB 1912 exemption from paying prevailing wage on common school construction. Died in the House. 
-- HB 2539 provided private right of action for unpaid prevailing wages. Permits interested parties as well as claimants to file private rights of action for unpaid prevailing wages. Died in the House.
-- HB 1677 and SB 5927 would adjust prevailing wage laws to exempt contracts under $100,000 from prevailing wage laws. Died in House and Senate. 
-- HB 1138 requires the deposit of prevailing wage fines into the Public Works Administration Account. Passed and signed into law.

2003-2004 -- SB 6075 requires the use of stratified random sampling technology for determination of prevailing wages. Died in Senate.
-- HB 1386 would adjust prevailing wage laws to exempt cities and counties with a population of less than 75,000 people from prevailing wage laws. Died in House.

2006 -- SB 5236, agreed upon by business and labor interests, provides additional funding for the state to enforce prevailing wage standards. Passed and was signed into law.

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Copyright © 2007 — Washington State Labor Council, AFL-CIO