This post dives into the most commonly asked questions about prevailing wage laws for public construction projects in Washington State. Contact us for any specific questions.

The Department of Labor Standards (DLS) sets prevailing wage rates for different job titles. These rates are based on local union contracts. You get the wage schedule from the awarding authority (the government agency giving the contract).

The wage schedule applies for the entire project. For long projects, you might need an update. Get updates from the awarding authority. Workers can appeal wage decisions to the DLS Director.

Important! Put the wage schedule up at the worksite. If the awarding authority forgets to give you one, don’t use an old one. Contact them right away to get the correct schedule from the DLS.

Prevailing wage rates are updated the first business day in August and February and take effect 30 days after publication. The updates adjust the rates due to changes in a CBA, results of wage-and-hour surveys, and changes to the minimum wages.

There is no specific threshold requirement for prevailing wage rates in Washington State. There is a law that only applies to construction projects at state colleges and universities. This law sets a minimum threshold of $25,000 for those projects.

Overtime:

• Standard: Time-and-a-half pay after 40 hours per week or 8 hours per day (unless a 4/10 agreement allows 10-hour days).
• Details on holiday/Sunday pay: Look Up Wage Rates: https://lni.wa.gov/licensing-permits/public-works-projects/prevailing-wage-rates/.

Supervisors/Foremen:

• Must be paid prevailing wage for “hands-on” work according to specific criteria (WAC 296-127-015: https://app.leg.wa.gov/wac/default.aspx?cite=296-127-015). This ensures fair pay for both supervisory and manual labor.

Here’s a breakdown of how fringe benefits are handled when calculating prevailing wages for public works projects in Washington:

Employer-Provided Benefits vs. Prevailing Wage:

• Employers are not required to offer “usual benefit” programs (health insurance, retirement plans, etc.).
• If no benefits are offered, the full prevailing wage rate (as defined by RCW 39.12.010) must be paid to employees.

What Qualifies as a “Usual Benefit”:

• Employer contributions must comply with all federal and state laws (ERISA, IRS regulations).
• Employee contributions (self-pay, deductions) don’t count towards the prevailing wage calculation.

List of “Usual Benefits”:

• Health and Welfare: Medical insurance (including dental, vision, life).
  • Important: Accident/illness insurance mandated by law doesn’t qualify.
• Retirement Plans: Employer contributions towards employee retirement income.
• Vacation Pay: Paid directly to employees or into a vacation fund (as long as it’s paid out).
• Apprentice Training Fund: Payments to approved training programs.
• Paid Holidays: Payments made to employees for specific holidays.

Note: Benefits required by other laws (local, state, federal) don’t count as “usual benefits”. 

Contractors engaged in public works projects in Washington must adhere to certified payroll report regulations, maintaining records for three years from project completion. These records, accessible through the Awarding Agency Portal at https://www.lni.wa.gov/licensing-permits/public-works-projects/awarding-agencies/awarding-agency-portal ,must include detailed information such as employee names, addresses, social security numbers, trades, and occupations.

Additionally, records should specify straight time and hourly rates, hours worked (including overtime), executed 4/10 work agreements, and itemized deductions from gross wages. To ensure compliance, contractors must file weekly certified payroll records online with L&I at least once a month, as outlined in RCW 39.12.120.

Washington Prevailing Wage Law Guide:
https://lni.wa.gov/forms-publications/f700-032-000.pdf

How Prevailing Wage Rates are Developed:
click here.

Finding Prevailing Wage Rates by Classifications:
https://www.lni.wa.gov/licensing-permits/public-works-projects/prevailing-wage-rates/