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Bill would require annual prevailing‑wage updates on public‑works contracts, drawing support from trades and concern from contractors

Labor and Workplace Standards Committee · February 18, 2026

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Summary

Engrossed SB 5061 would require public‑works contracts to update prevailing wages annually (exempting residential/small works), defenders say it prevents wage erosion on multi‑year projects; contractors urged change‑order guardrails to protect smaller firms from unpredictable increases.

The committee heard engrossed second substitute Senate Bill 50 61, which would require public‑works prime contractors to update hourly prevailing‑wage rates annually based on the latest L&I rates for the duration of a project. Staff said residential construction and small works roster projects would be exempt and that the prevailing wage otherwise is currently locked in at the bid date.

Supporters from building trades argued the change prevents wage erosion when projects span multiple years, improving worker retention and apprenticeship outcomes. Erin Fraser (Washington State Building Construction Trades Council) said freezing wages for multi‑year projects erodes compensation and drives turnover.

Contractor groups — including the Associated General Contractors, Associated Builders and Contractors, and regional contractor associations — voiced concern that the state's prevailing‑wage setting process can produce sudden, large increases in specific trades, creating bidding uncertainty and threatening small contractors' viability. Gerry Vanderwood (AGC) proposed an amendment to allow change orders for increases above about 5% to guard against rare but significant jumps in prevailing rates.

Panelists and staff discussed implementation complexity; L&I indicated IT changes and a delayed effective date would be needed. No committee vote was taken; stakeholders requested an updated fiscal note and follow‑up on rule‑making fixes to avoid importing high urban CBA rates into other regions.