Interested party/prev. wage

AN ACT Relating to expanding the definition of "interested party" 1
for the purposes of prevailing wage laws; amending RCW 39.12.010, 2
39.12.010, and 39.12.120; providing an effective date; and providing 3
an expiration date. 4
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:5
Sec. 1. RCW 39.12.010 and 2019 c 242 s 2 are each amended to 6
read as follows: 7
(1) The "prevailing rate of wage" is the rate of hourly wage, 8
usual benefits, and overtime paid in the locality, as hereinafter 9
defined, to the majority of workers, laborers, or mechanics, in the 10
same trade or occupation. In the event that there is not a majority 11
in the same trade or occupation paid at the same rate, then the 12
average rate of hourly wage and overtime paid to such laborers, 13
workers, or mechanics in the same trade or occupation is the 14
prevailing rate. If the wage paid by any contractor or subcontractor 15
to laborers, workers, or mechanics on any public work is based on 16
some period of time other than an hour, the hourly wage is 17
mathematically determined by the number of hours worked in such 18
period of time. 19
(2) The "locality" is the largest city in the county wherein the 20
physical work is being performed. 21
H-1091.1
HOUSE BILL 1821
State of Washington 69th Legislature 2025 Regular Session
By Representatives Cortes, Stonier, Doglio, Berry, Parshley, Street,
Obras, Ormsby, Macri, Fosse, Scott, and Pollet
Read first time 02/04/25. Referred to Committee on Labor & Workplace
Standards.
p. 1 HB 1821
(3) The "usual benefits" includes the amount of:1
(a) The rate of contribution irrevocably made by a contractor or 2
subcontractor to a trustee or to a third person pursuant to a fund, 3
plan, or program; and 4
(b) The rate of costs to the contractor or subcontractor, which 5
may be reasonably anticipated in providing benefits to workers, 6
laborers, and mechanics pursuant to an enforceable commitment to 7
carry out a financially responsible plan or program which was 8
communicated in writing to the workers, laborers, and mechanics 9
affected, for medical or hospital care, pensions on retirement or 10
death, compensation for injuries or illness resulting from 11
occupational activity, or insurance to provide any of the foregoing, 12
for unemployment benefits, life insurance, disability and sickness 13
insurance, or accident insurance, for vacation and holiday pay, for 14
defraying costs of apprenticeship or other similar programs, or for 15
other bona fide fringe benefits, but only where the contractor or 16
subcontractor is not required by other federal, state, or local law 17
to provide any of such benefits. 18
(4) An "interested party" includes a contractor, subcontractor, 19
an employee of a contractor or subcontractor, an organization whose 20
members' wages, benefits, and conditions of employment are affected 21
by this chapter, a joint labor-management cooperation committee 22
established pursuant to the federal labor management cooperation act 23
of 1978, a Taft-Hartley trust, and the director of labor and 24
industries or the director's designee. 25
(5) An "inadvertent filing or reporting error" is a mistake and 26
is made notwithstanding the use of due care by the contractor, 27
subcontractor, or employer. An inadvertent filing or reporting error 28
includes a contractor who, in good faith, relies on a written 29
determination provided by the department of labor and industries and 30
pays its workers, laborers, and mechanics accordingly, but is later 31
found to have not paid the proper prevailing wage rate.32
(6) "Unpaid prevailing wages" or "unpaid wages" means the 33
employer fails to pay all of the prevailing rate of wages owed for 34
any workweek by the regularly established payday for the period in 35
which the workweek ends. Every employer must pay all wages, other 36
than usual benefits, owing to its employees not less than once a 37
month. Every employer must pay all usual benefits owing to its 38
employees by the regularly established deadline for those benefits.39
p. 2 HB 1821
(7) "Rate of contribution" means the effective annual rate of 1
usual benefit contributions for all hours, public and private, worked 2
during the year by an employee (commonly referred to as 3
"annualization" of benefits). The only exemption to the annualization 4
requirements is for defined contribution pension plans that have 5
immediate participation and vesting. 6
Sec. 2. RCW 39.12.010 and 2024 c 7 s 2 are each amended to read 7
as follows: 8
(1) The "prevailing rate of wage" is the rate of hourly wage, 9
usual benefits, and overtime paid in the locality, as hereinafter 10
defined, to the majority of workers, laborers, or mechanics, in the 11
same trade or occupation. In the event that there is not a majority 12
in the same trade or occupation paid at the same rate, then the 13
average rate of hourly wage and overtime paid to such laborers, 14
workers, or mechanics in the same trade or occupation is the 15
prevailing rate. If the wage paid by any contractor or subcontractor 16
to laborers, workers, or mechanics on any public work is based on 17
some period of time other than an hour, the hourly wage is 18
mathematically determined by the number of hours worked in such 19
period of time. 20
(2) The "locality" is the largest city in the county wherein the 21
physical work is being performed. 22
(3) The "usual benefits" includes the amount of:23
(a) The rate of contribution irrevocably made by a contractor or 24
subcontractor to a trustee or to a third person pursuant to a fund, 25
plan, or program; and 26
(b) The rate of costs to the contractor or subcontractor, which 27
may be reasonably anticipated in providing benefits to workers, 28
laborers, and mechanics pursuant to an enforceable commitment to 29
carry out a financially responsible plan or program which was 30
communicated in writing to the workers, laborers, and mechanics 31
affected, for medical or hospital care, pensions on retirement or 32
death, compensation for injuries or illness resulting from 33
occupational activity, or insurance to provide any of the foregoing, 34
for unemployment benefits, life insurance, disability and sickness 35
insurance, or accident insurance, for vacation and holiday pay, for 36
defraying costs of apprenticeship or other similar programs, or for 37
other bona fide fringe benefits, but only where the contractor or 38
p. 3 HB 1821
subcontractor is not required by other federal, state, or local law 1
to provide any of such benefits. 2
(4) An "interested party" includes a contractor, subcontractor, 3
an employee of a contractor or subcontractor, an organization whose 4
members' wages, benefits, and conditions of employment are affected 5
by this chapter, a joint labor-management cooperation committee 6
established pursuant to the federal labor management cooperation act 7
of 1978, a Taft-Hartley trust, and the director of labor and 8
industries or the director's designee. 9
(5) An "inadvertent filing or reporting error" is a mistake and 10
is made notwithstanding the use of due care by the contractor, 11
subcontractor, or employer. An inadvertent filing or reporting error 12
includes a contractor who, in good faith, relies on a written 13
determination provided by the department of labor and industries and 14
pays its workers, laborers, and mechanics accordingly, but is later 15
found to have not paid the proper prevailing wage rate.16
(6) "Unpaid prevailing wages" or "unpaid wages" means the 17
employer fails to pay all of the prevailing rate of wages owed for 18
any workweek by the regularly established payday for the period in 19
which the workweek ends. Every employer must pay all wages, other 20
than usual benefits, owing to its employees not less than once a 21
month. Every employer must pay all usual benefits owing to its 22
employees by the regularly established deadline for those benefits.23
(7) "Rate of contribution" means the effective annual rate of 24
usual benefit contributions for all hours, public and private, worked 25
during the year by an employee (commonly referred to as 26
"annualization" of benefits). The only exemption to the annualization 27
requirements is for defined contribution pension plans that have 28
immediate participation and vesting. 29
(8) "Contractor" means any prime contractor, subcontractor, or 30
other employer as defined by rules adopted by the department of labor 31
and industries. "Contractor" includes an entity, however organized, 32
with substantially identical operations, corporate, or management 33
structure to an entity that has been found in violation under RCW 34
39.12.050, 39.12.055, or 39.12.065, or any associated rules. The 35
nonexclusive factors used to determine substantial identity include 36
an assessment of whether there is: Substantial continuity of the same 37
business operation; use of the same machinery, equipment, or both 38
tangible and intangible real or personal property; similarity of jobs 39
and types of working conditions; continuity of supervisors; and 40
p. 4 HB 1821
similarity of product or services. An entity with operational, 1
corporate, and management structures distinct from an entity that has 2
been found in violation under RCW 39.12.050, 39.12.055, or 39.12.065, 3
or any associated rules, shall not be deemed a substantially 4
identical entity. 5
Sec. 3. RCW 39.12.120 and 2019 c 242 s 5 are each amended to 6
read as follows: 7
(1) Each contractor, subcontractor, or employer shall keep 8
accurate payroll records for three years from the date of acceptance 9
of the public works project by the contract awarding agency, showing 10
the employee's full name, address, social security number, trade or 11
occupation, classification, straight and overtime rates, hourly rate 12
of usual benefits, and hours worked each day and week, including any 13
employee authorizations executed pursuant to RCW 49.28.065, and the 14
actual gross wages, itemized deductions, withholdings, and net wages 15
paid, for each laborer, worker, and mechanic employed by the 16
contractor for work performed on a public works project.17
(2) A contractor, subcontractor, or employer shall file a copy of 18
its certified payroll records using the department of labor and 19
industries' online system at least once per month. If the department 20
of labor and industries' online system is not used, a contractor, 21
subcontractor, or employer shall file a copy of its certified payroll 22
records directly with the department of labor and industries in a 23
format approved by the department of labor and industries at least 24
once per month. 25
(3) The department of labor and industries shall provide, upon 26
request, a copy of an employee's payroll records to an interested 27
party. The record must be unredacted except to the extent necessary 28
to prevent the disclosure of the employee's social security number.29
(4) A contractor, subcontractor, or employer's noncompliance with 30
this section constitutes a violation of RCW 39.12.050.31
NEW SECTION. Sec. 4. Section 1 of this act expires January 1, 32
2026.33
NEW SECTION. Sec. 5. Section 2 of this act takes effect January 34
1, 2026.35
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p. 5 HB 1821