Salaries and Benefits

Plain English Breakdown

Checked against official source text during the last sync.

Amending Prevailing Wage Requirements for Highway Construction

This bill changes how prevailing wage rates are defined and applied to highway construction projects in Tennessee.

What This Bill Does

• Changes the definition of 'state contract' to only include written agreements for highway work with the state.
• Requires that workers on both state highway projects and non-state funded public highway projects get paid the prevailing wage rate if federal or state funds are involved.
• Allows the commissioner of labor and workforce development to appoint a designee to serve on the Prevailing Wage Commission.
• Makes these changes effective immediately upon becoming law.

Who It Names or Affects

• Highway contractors working on projects funded by Tennessee or federal money.
• Local governments with contracts for public highway construction.

Terms To Know

Prevailing Wage Rate

The standard wage rate paid to workers in a specific area and type of work, as determined by the state.

State Contract

A written agreement between a person or company and the state for performing work on highway construction projects.

Limits and Unknowns

• The exact fiscal impact cannot be precisely calculated due to multiple unknown factors.
• Local governments may face increased costs if they have contracts for public highway construction that now require higher prevailing wages.

Official Summary Text

Present law requires any highway contractor entering into a state contract for performance of work on state highway construction projects to pay not less than the prevailing wage rate for all types and classifications of work.
As used in the prior sentence, a
“
state contract”
mean
s
any contractual agreement, written or oral, entered into by any person, firm, or corporation with this state for performance of work on a state highway construction project.

Under the provisions of this bill, a
“
state contract”
mean
s
any contractual written agreement entered into by any person, firm, or corporation with this state for performance of work on a state highway construction project.

This bill e the prevailing wage rate to be paid to workers on (
i
) all state highway construction projects and (
ii
) all non-state contract construction projects on public highways that are funded in whole or in part with federal or state highway funds.

PREVAILING WAGE COMMISSION

Present law creates the prevailing wage commission
("commission")
and provides that the commission is composed of five members, including the commissioner of labor and workforce development, who serves as chair, the state architect, and the commissioner of transportation or the commissioner
'
s designee.

This bill authorizes the commissioner of labor and workforce development to appoint a designee to serve on the commission.

This act takes effect upon becoming a law and applies to contracts entered into, amended, or renewed on or after the effective date.

Current Bill Text

SENATE BILL 2229
By Johnson

HOUSE BILL 2541
By Lamberth
HB2541
010039
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 12,
Chapter 4, Part 4, relative to the prevailing wage
rate.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 12-4-402, is amended by deleting
subdivision (5) and substituting:
(5) "State contract" means any contractual written agreement entered into by
any person, firm, or corporation with this state for the performance of work on a state
highway construction project; and
SECTION 2. Tennessee Code Annotated, Section 12-4-403, is amended by deleting
subsection (a) and substituting:
(a) It is hereby declared to be the policy of this state that the prevailing wage
rate be determined by the defined standards and that such rate be paid to workers on all
state highway construction projects and all non-state contract construction projects on
public highways that are funded in whole or in part with federal or state highway funds.
SECTION 3. Tennessee Code Annotated, Section 12-4-404(a), is amended by adding
"or the commissioner's designee" after "development".
SECTION 4. This act takes effect upon becoming a law, the public welfare requiring it,
and applies to contracts entered into, amended, or renewed on or after such date.