OFFICE OF LEGISLATIVE
RESEARCH
PREVAILING
WAGE LAW CHANGES
By: Lynn Marx, Research Attorney
February 26, 2002
2002-R-0242
You
asked for information about substantive changes in the state prevailing wage
law during the last 20 years.
SUMMARY
The
legislature enacted the state's prevailing wage law in 1933. It requires
contractors on public construction jobs to pay their laborers the same wage as
is "customarily" paid for the same work in the town where the work is
being performed. Currently, the law applies to all state and local government
new construction projects costing $ 400,000 or more and to local and state
government alteration and repair jobs costing $ 100,000 or more.
During
the 1980s, the dollar thresholds were increased and new requirements for
individuals involved with prevailing wage contracts were enacted. During the
1990s, the dollar thresholds were doubled and penalties for violations of the
prevailing wage law were enhanced. There have been no changes to the prevailing
wage law in the last four years.
1980S
In
1983, the law was amended to require individuals responsible for prevailing
wage contracts to contact the labor commissioner 10 to 20 days prior to the
date a contract is advertised for bid to ascertain the proper rate of wages and
employee fund contributions.
In
1985, the threshold amount was increased from $ 50,000 to $ 200,000 for new
construction and from $ 10,000 to $ 50,000 for various kinds of renovations.
The law was also amended to require the person responsible for putting a
contract subject to the prevailing wage out to bid to certify in writing to the
labor commissioner the total dollar amount of the work to be done on the
project. Contractors were required to certify under oath to the commissioner
the pay scale he and any of his subcontractors would be using.
1990S
In
1991, the thresholds for state and local public works projects covered by the
prevailing wage law were doubled and the penalties for violating the law were
increased. The 1991 act made the prevailing wage law apply to projects
involving new construction costing at least $ 400,000 instead of $ 200,000 and
to projects involving repairs or alterations costing at least $ 100,000 instead
of $ 50,000. It increased the fine for each knowing or willful violation from
not more than $ 100 to between $ 2,500 and $ 5,000. It also extended the time a
violator remains on the Labor Department's list of those ineligible for state
and local contracts from three to five years.
In
1993, an act was passed requiring employers subject to the prevailing wage law
to file weekly certified payrolls with the contracting public agency. A new
crime of false statement in the first degree was created to cover someone who
intentionally files a false certified payroll. The crime is a class D felony.
The act also made it a crime for an employer to file a false certified payroll
and to fail to pay an employee or an employee welfare fund the amount shown on
the payroll. It reduced the time an employer who violates the prevailing wage law
can be barred from receiving state or local public works contracts from five
years to a maximum of three years. The act also increased the fines and
penalties for violating certain state wage laws, prohibited employers from
retaliating against employees who file or testify about wage claims, and
permitted the labor commissioner to conclude reciprocal agreements with other
states for interstate collection of wage claims and judgments.
In
1997, enforcement of the prevailing wage law was enhanced by (1) giving towns a
share of the increased fines when local building inspectors are first to spot
violations; (2) making it a felony for a contractor subject to the prevailing
wage law to fail to file certified payrolls with the contracting agency; (3)
banning contractors who violate the prevailing wage law from bidding on public
work contracts for a minimum of six months for a first violation, and two years
for a subsequent one; (4) allowing contracting agencies to hold back funds from
money due contractors who violate the prevailing wage law; (5) requiring
contractors to submit certified payrolls on a monthly rather than weekly basis;
and (6) expanding the types of employee welfare funds covered by the benefit
payments requirement to include trust funds established by one or more third
parties not affiliated with the employers, as well as such funds established by
employers or labor organizations. Fines for retaliating
against an employee because he participates in a wage claim, for failing to
keep or furnish wage records, and for hindering a wage investigation were
doubled. In addition, the civil penalty for violating a wage law was
increased from $ 150 to $ 300.