Prevailing Wage Washington: Craft Codes & Apprenticeship Tracking
Washington State is known for its natural beauty, national parks, food, and other attractions (such as the famous Pike Place Market). Another thing it should be known for, though, is its prevailing wage laws.
When it comes to working in Washington State as a contractor, subcontractor, or laborer, one of the terms you will likely hear often is “prevailing wage,” but what does that mean, exactly, and why is it important?
Prevailing wage laws ensure fair and competitive pay for workers and laborers on public works projects. In Washington, prevailing wage regulations play a crucial role in maintaining standards for workers and contractors alike.
In this article, we’ll explore the ins and outs of prevailing wage in Washington, from the basics of prevailing wage to the reports you should be filing. Whether you’re a contractor, subcontractor, representative of a public agency that awards public works contractors, or worker, understanding prevailing wage is vital to understanding the landscape of public works projects in the Evergreen State.
Not based in Washington? We’re breaking down prevailing wage in a handful of other states here.
Washington Prevailing Wage Basics
In 1945, Washington State enacted the Washington State Prevailing Wages on Public Works Act. Also known as Chapter 39.12 of the Revised Code of Washington (RCW), this worker protection act requires contractors and subcontractors to pay prevailing wages when employing laborers on public works projects. Modeled after the federal Davis-Bacon Act, the Prevailing Wages on Public Works Act protects employees from “substandard earnings” when working for contractors on public works construction projects and “preserve local wage standards.”
The Ins and Outs of Washington Prevailing Wage
So what is prevailing wage? Prevailing wage is the minimum hourly rate — and fringe benefits — paid to laborers and workers on public works projects.
But what’s a public works project? A public works project is “a project funded by any public dollars” or “a private construction project resulting from government agency agreement(s) to rent, lease, or purchase.” Similarly, public works projects include construction, reconstruction, maintenance, and repair. They may also include janitorial contracts, ground maintenance, small projects, and off-site work like custom fabrication.
In Washington State, every contractor and subcontractor on a public works project must file a Statement of Intent to Pay Prevailing Wages. Contractors or subcontractors must submit this form to Washington L&I (the Department of Labor and Industries) after a contract has been awarded but before work begins.
After it is submitted, the Statement of Intent will be approved by the Industrial Statistician and may be reviewed by the awarding agency. It must also be submitted, approved, and on file with the Washington L&I before the contractor or subcontractor can receive their first payment.
Once the prevailing wage has been determined and paid, contractors must submit weekly certified payroll reports for all prevailing wage jobs directly to the Washington L&I. These certified payroll reports ensure that workers are being paid the Washington prevailing wage when necessary and can be submitted online with the Washington L&I.
Prevailing Wage Rate Determinations
In Washington State, the Washington State Department of Labor and Industries (Washington L&I) Industrial Statistician determines the prevailing wage rates, which vary based on trade, scope of work (or type of work), county, and bid due date or contract award date, depending on the circumstances.
The rates are determined after the Washington L&I collects wage and hour data from contractors and labor unions using surveys. Washington L&I conducts the surveys every three years and reaches various workers on different types of jobs. If most of the workers in a specific trade get the same pay for work, that rate becomes the prevailing wage; if there are different rates of pay for work, an average is calculated to become the prevailing wage rate.
You can find more information on specific prevailing wage rates on the Washington L&I website.
Prevailing Wage Violations and Penalties
Unfortunately, Washington L&I violations and penalties to prevailing wage laws do occur. The consequences of violating the Prevailing Wages on Public Works Act vary, but the most common is owing a fee of $5,000 or an amount equal to 50% of the total wage. Another potential consequence of violating prevailing wage law is owing 1% interest on the amount owed for each occurrence or employee.
The Washington L&I also uses a strike and debar system that details contractors who have violated prevailing wage, apprenticeship, industrial insurance, or contractor registration law.
Even if the error is a mistake, penalties will be assessed, which is why it’s important to understand whether your project owes prevailing wage, what the prevailing wage rate is, and how best to file certified payroll reports.
Craft Codes: Identify Worker Classifications
Washington L&I has established craft, or trade, codes, which are represented by “trade” in the XML Schema Element. They’re designed to help identify trades and crafts in the certified payroll reporting process.
Some examples of trade codes include “BOIL” for Boilermakers, “CARP” for Carpenters, “ELEC” for indoor Electricians, “ “GLAZ” for Glaziers, “IRON” for Ironworkers, “LABO” for Laborers, “PAIN” for Painters, “PLUM” for Plumbers and Pipefitters, and “ROOF” for Roofers.
Apprenticeship Tracking: Understand Apprenticeship Requirements
Washington State law requires apprentices to be employed on all public works projects. Depending on the project, they must be in a state- or federally-approved program.
There are potential exceptions to this rule, such as when there are no available apprentices or if the work is not in a craft that requires apprentices. In that case, you must submit the proper documentation to the Washington State Apprenticeship and Training Council (WSATC).
Apprentices also have their own prevailing wage rates, as documented here.
Deep Dive: Washington State Prevailing Wage Reports
There are a handful of certified payroll reports that are helpful to know if you’re a contractor or subcontractor in Washington State. Having a handle on these reports will make the certified payroll reporting process easier to complete when the time comes.
Washington Department of L&I XML File
This file is for the Prevailing Wage Intent and Affidavit System, or PWIA. This system is accessible through My L&I or SecureAccess Washington (SAW), and allows you to “file intents, affidavits, and certified payroll reports,” as well as “review apprentice utilization reports” and “verify your workers’ compensation coverage.” Since going into effect in January 2020, this file upload has simplified the certified payroll reporting process.
Washington Department of Labor Certified Payroll Report (F700-065-000)
The Washington Department of Labor (DOL) Certified Payroll Report is a certified payroll report for contractors or subcontractors to fill out and submit to ensure they are paying Washington's prevailing wage. This report must include the following information: employee name, address, trade and occupation, straight time rate, hourly rate of usual benefits, hours worked including overtime, and all itemized deductions taken from gross wages.
Washington Department of Transportation Monthly Employment Utilization Report
The Washington State Department of Transportation Monthly Employment Utilization Report is a certified payroll report for the DOT. Like other certified payroll reports, it requires information on the contractor and employees or laborers. However, this report is unique because it requires contractors or subcontractors to track the demographic information on their laborers, such as by race and gender.
Washington Statement of Apprentice/Journeyman Participation (EAS 010103)
The Statement of Apprentice/Journeyman Participation form, also known as EAS Labor Form 010103, tracks the apprentices and journeymen on a project by name, craft or trade, registration number, contractor or subcontractor name, and hours worked. This helps track the hours worked by category — apprentice or journeyman — to support the certified payroll reporting process.
Stay Ahead of Washington State Certified Payroll Reporting
Washington prevailing wage compliance and certified payroll reporting can be complicated. With different rates required for different trades and different reports required for different projects, it can be easy to get mixed up. However, getting mixed up can be a significant problem if it means you’re not in compliance with prevailing wage.
Luckily, Certified Payroll Reporting is here to help. Our automated software solutions for Davis-Bacon reporting and rate management effortlessly streamline your operations and ensure compliance. We’ll support you and your team with these solutions.
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With Certified Payroll Reporting, you could join the thousands of contractors across the country who are simplifying their prevailing wage reporting.