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Washington State Prevailing Wage and Public Works Regulations

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For public works projects, contractors and subcontractors must submit weekly certified payrolls electronically through the Washington L&I system using a standardized XML format. eMars is able to produce L&I-compliant weekly payroll XML files that can be uploaded directly to the L&I site, eliminating manual data entry and helping ensure accurate, timely payroll compliance for Washington public works projects.

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Washington's Public Works Regulations

Washington State's prevailing wage laws are governed by both state and federal regulations and apply to public works projects financed by state or local government funds as well as federally funded projects.

  • State Law: Washington's prevailing wage law is codified in Revised Code of Washington Chapter 39.12, covering all state and locally funded public works projects regardless of size. RCW 39.12.120, added in 2018, also requires contractors and subcontractors to file certified payroll directly with L&I.
  • Federal Law: The Davis-Bacon Act applies to federally funded public works projects, requiring contractors and subcontractors to pay locality-based wage and fringe rates set by the U.S. Department of Labor.

Washington has its own "Little Davis-Bacon Act", requiring prevailing wages on all public works projects financed by state or local entities, regardless of project size.

Definition of "Public Works" in Washington

Washington defines "public works" as any construction, repair, alteration, or improvement project financed by public funds, including infrastructure projects such as roads, bridges, public schools, and government buildings. The state's definition also covers maintenance contracts and building services, ensuring that a wide range of public works falls under prevailing wage requirements.

On federally funded projects, the 2023 DOL final rule expanded the definition of "building or work" to include solar arrays, wind turbines, broadband infrastructure, and EV charging stations.

Prevailing Wage Determinations: Federal (Davis-Bacon) and State-Specific Requirements

Federal Davis-Bacon Act

Under the Davis-Bacon Act, contractors and subcontractors on federally funded projects must pay workers at least the prevailing wage rate for similar work in the project's county. The U.S. Department of Labor publishes determinations on SAM.gov by county and construction type.

Washington State-Specific Requirements

Washington's prevailing wage law mandates that prevailing wages be paid on every public works project, regardless of size or funding source. Key aspects include:

  • Wage Rates: The Washington State Department of Labor and Industries (L&I) sets prevailing wage rates based on labor agreements and wage surveys.
  • Scope: All state and locally funded public works projects are subject to prevailing wage requirements.
  • Rate Updates: L&I publishes new rates on the first business day of February and August, with rates taking effect 30 days after publication. Contractors apply the rate in effect on the bid due date for the project's duration unless the bid is awarded more than six months later.

Components of Wage Determinations

Wage determinations in Washington include:

  • Basic Hourly Rate: The minimum wage paid to workers in a specific classification.
  • Fringe Benefits: Additional compensation in health insurance, retirement, or paid leave.
  • Total Hourly Rate: The basic hourly rate plus fringe benefits. Contractors can provide bona fide fringe benefits or pay the fringe value as additional cash on top of the basic rate.

For example, if the basic hourly rate is $40 and fringe benefits are $15, the total hourly rate is $55. Workers must receive the full $55 in cash wages if the contractor does not provide fringe benefits, or a combination of basic wage and bona fide benefits totaling $55 per hour worked.

Compliance for Contractors and Subcontractors

Contractors and subcontractors on public works projects in Washington must:

Determine Applicable Wage Rates

Determine Applicable Wage Rates

Use the L&I online wage lookup for state and local projects and SAM.gov for federally funded projects. When both apply, pay the higher rate for each classification.

Submit Certified Payroll

Submit Certified Payroll

File weekly certified payroll directly with L&I, typically through the L&I XML upload system. On federally funded projects, also file weekly Form WH-347 with the contracting agency.

Handle Fringe Benefits

Handle Fringe Benefits

Provide bona fide fringe benefits or pay the equivalent value as additional cash wages.

Meet Apprentice Utilization Requirements

Meet Apprentice Utilization Requirements

On covered contracts, ensure at least 15 percent of labor hours are performed by registered apprentices under RCW 39.04.320.

Post Wage Rates On-Site

Post Wage Rates On-Site

Display current prevailing wage rates at the job site in a visible location.

Maintain Records

Maintain Records

Keep certified payroll, classifications, and supporting documents for at least three years after project completion.

File an Affidavit of Wages Paid

File an Affidavit of Wages Paid

Submit through L&I Online Services after work is complete to certify wages and fringe benefits paid. Final payment and bond release are tied to Affidavit approval.

Penalties for Non-Compliance

Washington State imposes strict penalties for contractors that fail to comply with prevailing wage laws, including:

  • Payment of Back Wages: Contractors must pay workers any difference between wages and the prevailing wage rates.

  • Civil Penalty for Underpayment: The greater of $1,000 or 20 percent of the total prevailing wage violation under RCW 39.12.065.

  • Civil Penalty for False or Missing Filings: $500 per false filing or failure to file under RCW 39.12.050.

  • Debarment: One year for two RCW 39.12.050 violations within five years, two years for two RCW 39.12.065 violations within five years, and continuing debarment until all penalties are paid.

  • Alter-Ego Debarment (effective January 1, 2026): Senate Bill 6111 extends sanctions to companies with substantially identical operations, ownership, or management to a debarred entity.

  • Criminal Charges: Criminal penalties may be applied in cases of willful non-compliance.

Unique Aspects of Washington's Prevailing Wage System

Unique Aspects of Washington's Prevailing Wage System

  • Broad Application: Washington's prevailing wage laws apply to all public works projects regardless of project cost or size.
  • Twice-Yearly Rate Updates: L&I publishes new rates on the first business day of February and August, with rates taking effect 30 days after publication.
  • Apprentice Utilization Requirement: Under RCW 39.04.320, public works contracts above the project cost threshold must require that at least 15 percent of labor hours be performed by registered apprentices. The municipal threshold drops to $1,500,000 for contracts advertised for bid on or after July 1, 2026, from $2,000,000 currently.
  • Mandatory L&I Filings: Intent and Affidavit filings under RCW 39.12.040 gate awarding-agency payment and final close-out, making timely filing a cash-flow requirement, not just a paperwork task.
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Relevant Resources

For the most accurate and current information on prevailing wage requirements, consult the U.S. Department of Labor or your state's official labor website.

Washington Prevailing Wage FAQs

What is prevailing wage?

Prevailing wage is the hourly pay rate plus fringe benefits required by state and federal law for construction workers on public works projects. In Washington, the rate is set by L&I for each craft and county based on labor agreements and wage surveys. Paying the prevailing wage helps ensure that public works projects are staffed by qualified workers and that wages reflect local labor market conditions.

Who is subject to receiving prevailing wages?

Every laborer, mechanic, or other construction worker performing work on a publicly funded project in Washington must receive at least the applicable prevailing wage. Coverage applies to state, county, city, and other public agency contracts under RCW 39.12, and to federally funded projects under the Davis-Bacon Act when contract value reaches $2,000.

What about apprentices?

Apprentice utilization is required on public works contracts above a project cost threshold. Under RCW 39.04.320, at least 15 percent of labor hours must be performed by registered apprentices. The municipal threshold steps down to $1,500,000 for contracts advertised for bid on or after July 1, 2026, from $2,000,000 currently. Apprentices must be in a state-approved program, or a federally approved program if the project receives federal funds, and must work in an appropriate ratio to the journey workers present. If no apprentices are available or the craft is not apprenticeable, contractors must document the exception.

How are prevailing wage rates determined in Washington?

L&I sets prevailing wage rates based on collective bargaining agreements within each county. When no agreement is available for a specific trade or occupation, L&I conducts a wage and hour survey to establish the rate. New rates are published on the first business day of February and August and take effect 30 days after publication. Contractors apply the rate in effect on the bid due date for the duration of the project.