Committee hears bill to require annual prevailing‑wage adjustments on public works contracts

Senate Bill 5061, proposing annual adjustments to prevailing wage rates on public works contracts, drew broad testimony March 25 from labor unions, contractors, and industry associations before the Labor & Workplace Standards Committee.

The bill would require public‑works contracts to stipulate that the minimum hourly rate be adjusted annually based on the contract date so the wage is not less than the most recently published prevailing wage. The bill exempts small works roster contracts and residential construction.

Why this matters: Prevailing wages in Washington reflect local collective bargaining outcomes and are published by the Department of Labor and Industries (L&I). Under current practice the prevailing rate that applies is typically the rate in effect at the prime contractor’s bid due date for the life of the project; SB 5061 would require an annual adjustment so wages track more closely with updated prevailing‑wage publications.

Support from unions and trades: Multiple labor organizations testified in strong support, saying the proposal protects workers from frozen wages on long projects and reduces turnover. Erin Fraser of the Washington State Building & Construction Trades Council said the bill “is important to make sure that our workers’ wages aren't frozen, especially when projects go 3 to 5 years or more.” Chris Ellis of Bricklayers and Allied Craft Workers and representatives from IBEW, the Mechanical Contractors Association signatory members, and Laborers emphasized that prevailing wages include both wages and benefits and that annual adjustments preserve workers’ total compensation.

Contractor concerns and requested amendments: Contractor associations expressed concerns about cost predictability and cited instances of large percentage changes driven by the Department’s treatment of multiple collective bargaining agreements (the “2 CBA” issue). Christine Brewer of the Associated General Contractors of Washington said AGC negotiated multi‑year master labor agreements and that “our contracts currently reflect a 2 year freeze,” urging a mechanism to request change orders for significant increases. The Associated Builders and Contractors Inland Pacific Chapter likewise sought clearer change‑order language and predictability for nonunion contractors.

Implementation and predictability: Testimony from union and L&I witnesses indicated many signatory union contracts already include multi‑year, known increases — unions said they “know to the penny” the wage increases contained in collective bargaining agreements and post those figures in advance. Tammy Felon of L&I confirmed there are over 22,000 different prevailing‑wage rates in the program and that L&I publishes updates twice yearly; she noted prevailing wage is the statutory minimum and contractors may pay more.

Questions at the hearing focused on how contractors would price bids for long projects, whether nonunion contractors would have access to multi‑year increase schedules, and how much public‑works project costs could rise if labor rates change annually. Witnesses said labor increases can be calculated from union agreements but contractor markups and profit margins affect final bid pricing.

Several testifiers urged technical assistance for small bidders: Tiffany Scroggs of the Thurston Economic Development Council recommended that any major prevailing‑wage change include funding for technical assistance and training to ensure small and first‑time public works bidders understand compliance obligations.

The committee closed the SB 5061 hearing after testimony and questions; no vote was recorded in the transcript.