May 7, Prevailing Wage Law Chapter RCW Chapter WAC Annual Conference

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1 May 7, 2015 Prevailing Wage Law Chapter RCW Chapter WAC

2 Chapter RCW requires that laborers, workers, or mechanics employed on public works projects & public building service maintenance contracts receive not less than the prevailing rate of pay. RCW [pg. 26] The prevailing wage is the rate of hourly rate of wage, usual benefits, and overtime. RCW [page 25-26] Usual benefits are medical/dental, retirement, vacation, holidays, and apprenticeship. WAC [pg. 49] Overtime may have prevailing overtime rates for certain hours of work or days such as on holidays or weekends.

3 Dept. of Labor & Industries, Prevailing Wage Program Chapter RCW Chapter WAC Public work: All work, construction, alteration, repair, or improvement Maintenance performed by contract RCW [pg. 19], WAC (7) [pgs ], Construction, reconstruction, maintenance or repair RCW [pgs ] Turn-Key (lease, rental, or purchase) RCW [pg. 22] Off-Site Fabrication of Non-Standard Items Building Service Maintenance RCW [pg. 26]

4 Public work includes all work, construction, alteration, repair or improvement, other than ordinary maintenance, executed at the cost of the state or any municipality. Maintenance, when performed by contract, is considered public work. RCW (4) [Pg. 19] Public work is work executed at the cost of the state or municipality. Contracts for public work include purchase orders, job order contracts or any other legal payment agreement. The source of the funding does not determine the applicability of the statute which may include, but is not limited to, payments made by insurance companies and work covered performed warranty. WAC (7)(a) [Pgs ] Building service maintenance (janitorial) contracts require payment of the prevailing wage. Building service contracts for more than one year must require annual wage updates. (WAC ) [Pg. 55]

5 The prevailing rate of wage is defined in statute: The rate of hourly wage, usual benefits, and overtime paid in the locality to the majority of workers, laborers, or mechanics, in the same trade or occupation. RCW [pgs ] The prevailing wage rate is paid based on the classification of labor performed The Scope of Work. Scope of Work Descriptions are in rule. WAC to [not in the booklet] Link to Scopes: or:

6 The Washington Prevailing Wage on Public Works Act is remedial and should be construed liberally to effect the purpose of the statute. The purpose of the Act is "to protect the employees of governmental contractors from substandard wages and to preserve local wage standards...." The purpose of preserving the local wage structure is achieved when "maintenance performed by contract" is public work. All maintenance, when performed by contract is public work, and subject to prevailing wage. Maintenance is "ordinary" under the statute, when it is performed by in house employees of the public entity, and excluded. City of Spokane v. Dept. of Labor & Industries, 100 Wn. App. 805, 810 (2000) (emphasis added).

7 What makes a contract? An agreement or meeting of the minds such as an offer and some form of acceptance will form a contract. Contracts can be formed in conversation (e.g. a phone call), by a purchase order, the small works process, a competitive bid process or any other legal agreement. There is no threshold or minimum dollar amount for prevailing wage requirements. Even a small dollar amount contract is subject to chapter RCW

8 The State Auditor s Office made this statement: On-Call contracts are not specifically authorized in state law. These contracts can result in noncompliance with the public works contracting and prevailing wage statutes. Since the On-Call contracts are not authorized by state law, we recommend local governments establish policies, procedures and internal controls to ensure their contracting process is in compliance with public works contracting statutes (RCW Chapter 39.04, 39.06, and ) as well as prevailing wage statutes (RCW Chapter 39.12). RCW limits alternate forms of contracting: It is the intent of the legislature to establish that, unless otherwise specifically provided for in law, public bodies may use only those alternative public works contracting procedures specifically authorized in this chapter, subject to the requirements of this chapter. RCW Please check with L&I if you have questions about the Intents and Affidavits required for contracts for recurring work. RCW requires an Intent for each contract and an Affidavit for each project. There may be facts that define when you have a new contract and what prevailing rates are applicable. The legislature provided its direction for job order contracts: Prevailing wages for all work performed pursuant to each work order must be the rates in effect at the time the individual work order is issued. RCW (6). For purposes of chapters 39.08, 39.12, 39.76, and RCW, each work order issued shall be treated as a separate contract. RCW (6).

9 Generally, for work that was competitively bid, the prevailing wage rates in effect on the bid due date for the prime contractor are the rates that apply to that contract Except: Use the contract award date if the award was not within 6 months of the bid date. WAC [Pgs ] Annual updates are required for building service maintenance (janitorial) contracts. WAC [Pg. 55] Projects awarded by other than competitive bid use the award date. WAC (4). [Pgs ] Job Order Contracts use the issue date of each work order. RCW & 450 [pgs ] and RCW [pgs ]

10 Requires the payment of prevailing wage to worker based upon classification of labor performed RCW [Pg. 26] This Act is applicable to all public work involving state agencies or local governments Federal and State prevailing wage laws: For projects where both the state Public Works Act and the federal Davis-Bacon Act apply, contractors must pay the higher of the state or federal prevailing wage rates, on a classification-by-classification basis WAC [Pg. 55]

11 Bidding Exception: Emergencies (RCW ) An emergency means unforeseen circumstances beyond the control of the municipality that either: (a) Present a real, immediate threat to the proper performance of essential functions; or (b) will likely result in material loss or damage to property, bodily injury, or loss of life if immediate action is not taken. Competitive bid requirements may be waived by the governing board in the event of an emergency. Note: Prevailing Wage requirements do apply to emergency work. Tell the contractor this is a prevailing wage job and, after dealing with the emergency, it will be necessary to ensure the workers were paid not less than the prevailing rate of pay and file the completed Intent & Affidavit forms. Warranty Work: Warranty work is additional work on the same public works contract. Prevailing wages are still required. The original Intent on the contract is still effective. A new (amended) Affidavit will be required to report on the new total hours of work.

12 Include a schedule of the required wages or bid and contract specifications may provide the required prevailing wage rate information in this alternate format: Provide the URL to the Dept. of L&I s prevailing wage rates Identify the exact wage publication date to use State the county in which the public works project is located (note: off-site work will use the rates for the county where that off-site work is performed) Specify a copy is available for viewing in your office Explain that your agency will mail a hard copy upon request Retain a printed version of the rates as part of your records

13 All contractors and subcontractors at all tiers must file the Intent and Affidavit forms on public work RCW [Pages 26-27] Public Agency liability RCW [pg. 29] Owner/operators must file Intent & Affidavit forms RCW [pgs ] Apprentices are listed by name and registration number on the Affidavit Trainees are not state registered apprentices. Posting of Intent forms on the job site Projects over $10,000 RCW [pg. 26] No minimum amount or threshold for state prevailing wage even small jobs require prevailing wages Certified Payroll Records are not mandatory under state law but must be produced on the request of an interested party WAC [pg. 65]

14 Filing On Behalf Of (FOBO): By statute and policy, the hiring contractor can assume liability for any unpaid wages, document an allowable basis for the FOBO, and get a FOBO Affidavit. The policy is on the L&I web site at: Because FOBOs involve a compliance investigation (failure to file), they take longer to process. Please encourage the hiring contractor to request the FOBO ASAP.

15 Combined Intent/Affidavit form This method makes the public contract awarding agency directly liable to workers for unpaid prevailing wages RCW (2)(d) [pgs ] Dividing a project to come under the dollar limit is prohibited RCW (2)(e) [pg. 29] Signature of contracting agency required Awarding agency must retain copies 3 years Send copies of the forms to L&I within 30 days Form fee waived by L&I policy $500 civil penalty for failure to file

16 Combined Intent/Affidavit form The contract public awarding agency is liable to the workers for unpaid prevailing wages See RCW (2) [pgs ] and also see RCW (3) [pgs ] Breaking in units or phasing projects to come in under the dollar limit is prohibited RCW (4) [pages 19-22] Signature of contracting agency required Awarding agency must retain a copy for 3 years Awarding agency must forward forms to L&I within 30 days $80 filing fee must accompany each form $500 civil penalty for failure to file

17 The contract awarding agency decides if the alternative process may be used. The contractor must file the form with the public contract awarding agency. The public contract awarding agency must send a copy to L&I within 30 days. Note: Non-governmental organizations (NGOs) may not use combined forms since they are not subject to the relevant laws that control public agency use of the combined forms and assign liability for wages. Liability to the public agency for unpaid wages is a condition of using an alternative filing process. See RCW (2)(d) [pgs ] and RCW (4) [pgs ] No subcontractors. No subcontractors are allowed in this alternative process. This helps control exposure to possible liabilities. Single payment. Multiple payments require using a separate (regular) Intent before any initial payment and a separate (regular) Affidavit before the final payment is made. See RCW [pages 28-29] No time and materials. Total cost with tax must be within the form s dollar limit. No dividing or phasing of projects. The law prohibits breaking the project into units or phases to avoid the maximum dollar limit. The public agency must approve the combined forms by signature. No payment may be made until the form is approved by the public agency. $500 civil penalty. Failure to file subject to penalty. RCW [pgs ]

18 SHB 1254 RCW (3) [pgs ] Effective June 12, 2014 If, at the time an individual or entity files an affidavit of wages paid, the individual or entity is exempt from the requirement to pay the prevailing rate of wage under RCW , the department of labor and industries may not charge a fee to certify the affidavit of wages paid. Fees will apply to the Intent

19 Contractor Strike and Contractor Debarment Lists Updated from a static PDF to a searchable app. with sort and download capability / PWIA Project Dashboard Now your Intent and Affidavit searches are assisted by the project dashboard showing project details (based on the Intent & Affidavit filings) Intents and Affidavits filed on the project A list of the contractors and subcontractors on the project Possible identification of missing forms Now in development Awarding Agency Dashboard Prime Contractor Dashboard On-line combined forms (still requires AA authorization and approval) On-line project certified payroll records

20 Establish prevailing wage rates RCW [pg. 26] Determine classifications of labor (scope of work descriptions) WAC to [not in booklet] Process and certify Intent & Affidavit forms RCW [pgs ] Investigate all valid complaints alleging violations of the Public Works Act RCW [pgs ] Receive and distribute Certified Payroll records WAC [pg. 65]

21 Comply with Chapter RCW on public work. Pay the prevailing rate of pay to laborers, workers, and mechanics on public works. RCW [Pg. 26] Provide an approved Intent form before any payment is received. RCW [Pgs ] Provide an approved Affidavit form before the retainage can be released. Most Intents & Affidavits are filed on-line. RCW [Pages 28-29] Hire only responsible subcontractors. RCW [pg. 25] List all of the next lower tier subcontractors hired on addendum B to the Affidavit of Wages Paid form. RCW [Pgs ] Ensure that each and every subcontractor (lower tier contractor) files their Intent and Affidavit. RCW [Pgs ] Keep accurate work and pay records and submit a certified copy upon request. WAC [Page 65]

22 Award only to a Responsible Contractor RCW [pgs ] Verify registration, workers comp: Award contracts only to properly registered or licensed contractors RCW [pg. 25] RCW (contractor reg.) and RCW (electrical licensing) Do not award contracts to contractors not allowed to perform public work. View the debarred contractor list on-line from the awarding agency link under prevailing wage RCW [pgs ]; RCW [pgs ]; RCW [pg. 30] Obtain an approved Statement of Intent to Pay Prevailing Wages from each and every contractor and subcontractor at all tiers of subcontracting prior to any payment for work by that contractor, and obtain an approved Affidavit of Wages Paid from each and every contractor and subcontractor at all tiers of subcontracting prior to release of retainage held under RCW RCW [Pgs ]

23 Failure to obtain Intents & Affidavits from each and every contractor and subcontractor makes the awarding agency liable to all workers, laborers or mechanics for the full amount of wages due RCW [Pg. 29] When awarding a contract, the public agency must make the determination as to whether that contract involves public work and communicate it to the employers in the bid specifications and contracts RCW [Pgs ] WAC (5) [Pgs ] Contract specifications must contain a provision stating the prevailing wage rates and requirements and state if residential rates may be used There is a potential liability if residential rates are improperly allowed! RCW [pgs ] WAC (5) [pgs ]

24 Before any contract award determine: At the time of bid submittal is the contractor responsible? Is the contractor a registered contractor or licensed electrical contractor? Does the contractor have a UBI? If the contractor has employees does it have industrial insurance coverage? Does the contractor have an employment security department number? Does the contractor have a state excise tax registration number? Is the contractor debarred (not eligible to bid on any public works contract); If the public works project has apprenticeship utilization requirements in RCW , has the contractor been found out of compliance by the Washington state apprenticeship and training council for the one-year period preceding the date of the bid solicitation? Has the contractor violated RCW (reporting off-site pre-fab) more than one time as determined by the department of labor and industries? Contractors hiring subcontractors must verify subcontractor responsibility. RCW [pg. 25] CPARB Responsible Bidder Guideline:

25 No agency of the state or any of its political subdivisions may execute a contract: (1) With any contractor who is not registered or licensed as may be required by the laws of this state other than contractors on highway projects who have been prequalified as required by RCW , with the department of transportation to perform highway construction, reconstruction, or maintenance; or (2) For two years from the date that a violation is finally determined, with any person or entity who has been determined by the respective administering agency to have violated RCW (1)(b), (1)(b), or * (1)(b). During this two-year period, the person or entity may not be permitted to bid, or have a bid considered, on any public works contract. [1997 c 54 1; 1984 c 7 43; 1967 c 70 3.] Notes: *Reviser's note: RCW was amended by 1999 c , changing subsection (1)(b) to subsection (2). Severability c 7: See note following RCW Construction building permits -- Cities, towns or counties prohibited from issuing without verification of registration: RCW Title 50 RCW is on unemployment compensation (Employment Security Dept.) Title 51 RCW is on Industrial Insurance (L&I Workers Comp) Title 82 RCW is on Excise Taxes (Dept. of Revenue)

26 Track the contractors & subcontractors & their work! Check the UBI, contractor registration, DOR account and L&I industrial insurance account status for all subcontractors. Do you have boilerplate contract language that makes the prime responsible for reporting when a subcontractor first starts work and what days & hours they work, along with the number of workers they have on the project? Does your project manager track and double check this information? Rather than waiting for acceptance, when a contractor s work is complete, secure the Affidavit. Are the contractors posting their Intents? Employee interviews about prevailing wage compliance are effective. They are required for Davis-Bacon projects and a good practice for the state law.

27 RCW [pg. 27] Apprentice workers employed upon public works projects for whom an apprenticeship agreement has been registered and approved with the state apprenticeship council pursuant to chapter RCW, must be paid at least the prevailing hourly rate for an apprentice of that trade. Any worker for whom an apprenticeship agreement has not been registered and approved by the state apprenticeship council shall be considered to be a fully qualified journey level worker, and, therefore, shall be paid at the prevailing hourly rate for journey level workers. WAC [pg. 54] Any apprentice employed on public works projects for whom an apprentice agreement is registered and approved by the state apprenticeship council pursuant to chapter RCW within sixty days of hiring may be considered an apprentice and paid the applicable prevailing hourly rate for an apprentice of that trade for all hours worked.

28 The legislature created AURs for certain public works: State agencies that report to the Governor (DES) Projects over $1 million School districts Projects over $1 million Four-year institutions of higher education Projects over $1 million WSDOT - Projects over $2 million. RCW (1&4) [not in booklet]. Other public entities have chosen to impose their own utilization requirements: City of Seattle Spokane School District Port of Seattle City of Hoquiam Sound Transit Thurston County King County City of Tacoma Snohomish County Chelan County Port of Wenatchee Some private concerns include AURs in their standard contracts: Vulcan Construction Immunix/Hajum Harbor Properties Pine Street Associates

29 Over 7,500 Employers providing paid on-the-job training assuring skill development for registered apprentices. 265 Apprenticeship programs with specific minimum qualifications, apprentice selection procedures, wage progression, related classroom instruction and skilled credential outcomes. Work based learning for career development in over 600 occupations. 2,900 citizens of Washington state registered as apprentices to start career training in over 100 different occupations (Up from 1,743 registrations in 2011) 11,163 registered apprentices actively contributing to the economy earning a wage while they start a career.

30 Apprenticeship ensures the supply of qualified construction crafts workers for future public works projects. Apprenticeship is a pathway to creating family wage careers in our communities. Apprenticeship is the most cost effective training method for hands on occupations for all parties (workers, employers and government). State registered apprentices have a lower, apprentice wage on public works.

31 RCW Defines why apprentice utilization is required RCW Defines Apprenticeship as registered Apprenticeship Defines the utilization requirement as applying to all labor hours on a project and defines which hours count RCW Defines the requirement as 15% of all labor hours have to be performed by apprentices Defines who the utilization requirement applies to Defines reporting requirements, and allowable adjustments to the utilization requirement

32 Make utilization a BIDDING requirement Require a PLAN of the prime Require regular (monthly) REPORTING to ensure plan is being followed Define what will constitute GOOD FAITH exemption ENFORCE the utilization requirement Use LNI resources to help utilization happen

33 Online public Apprenticeship database ARTS: LNI printed resources: DOT printed materials: B29DDB4F1F8C/0/QuickReference.pdf Capital Projects Advisory Review Board Suggested Guidelines for Bidder Responsibility: nes.doc LNI Apprenticeship Staff: Patrick Martin Jody Robbins

34 Davis-Bacon and Chapter RCW Joint Application: What if both Federal and State prevailing wage requirements apply to the same contract and project? - WAC (pg. 55) Both laws require that you pay not less than the prevailing rate of pay. Perform to the higher standard to comply with both of the prevailing wage laws. Watch the state overtime requirements: Weekly, daily, and prevailing overtime

35 Federal law (the Davis-Bacon Act) only covers the work performed on the site of the public work State law: Chapter RCW applies prevailing wages to work specific to the public work including off-site work State law: Work contemplated by the contract for public work requires prevailing wages. See RCW [pgs ] State law: Materials delivery: WAC [pgs ]

36 DISCLAIMER: This presentation of court cases includes a few selected, significant issues for prevailing wages under Chapter RCW. This presentation is not a comprehensive analysis of the cases identified nor a full set of relevant case law on Chapter RCW.

37 Remedial law: Liberally construed. The law covers: Work upon all public works... Purpose: to protect the employees of government contractors from substandard earnings and to preserve local wage standards State law is broader than the federal law (Davis-Bacon covers directly upon the site of the work ). The law s purpose is served by applying the wage requirements to off-site manufacturers.

38 Everett Concrete Products Off-Site Manufacture or Fabrication of a nonstandard item made specifically for a public work requires prevailing wages. A Standard or Non-Standard checklist was developed by PWAC and is used by WSDOT.

39 Mr. Heller worked in the contractor s (McClure & Sons ) mechanic shop. He was sent to a public works project to repair broken equipment. The wage claim covered both shop and job site work. Mr. Heller abandoned the claim for shop work and the court ruled only on the on-site mechanic s work. The court focused on the phrase upon all public works in its analysis. Heller s work was both directly related to the prosecution of the contracted work and necessary for its completion. The appellate court reversed the trial court finding that prevailing wages were required for this on the site of the public works equipment repair.

40 Shipyard Boilermakers welded pipe in the shipyard to be used as the outfall pipe for a wastewater treatment plant. Lockheed paid the prevailing rate of pay for a Boilermaker under Ship Building & Ship repair. The applicable prevailing rate of wage for the outfall pipe was Pipefitter, not the Shipyard Boilermaker rate.

41 The Director concluded that because the "work performed in the Lockheed Shipyard by Lockheed employees for the METRO public works project was of the same type and of a similar nature as work done by pipefitters in the construction industry in the fabrication of pipe for carrying sewage, water, oil, and gas", the applicable rate was the pipefitter construction rate, not the boilermaker shipyard rate. The court rejected Lockheed s argument that the rate should be based on where the work was performed. Whether work is in the same trade or occupation" depends upon the "TYPE of work rather than where the work was performed or by whom it was done. The Director s decision was affirmed by both the trial court and the appellate court.

42 The Supporters of the Center, a private, not-forprofit organization, obtained substantial private and public funds to build a performing arts center. The largest portion of public finding was a state grant. The appellate court found the project was a public work that required prevailing wages. A public agency s direct involvement (in bidding the work) is not required, just that the work was executed at a cost of the governmental entity. Citing City of Spokane, 100 Wn.App. at 812.

43 A housing authority had 100% federal funds for a project. The court considered the question: Was there a cost to the state or a municipality for this project? The source of funding does not determine the applicability of the prevailing wage statute. Drake at 29. Prevailing wages were required under the state law, chapter RCW.

44 Construction of the third runway at SeaTac. They filled an entire valley with fill dirt: Over 12 acres and up to 150 feet deep! The fill operation took six months. The truck drivers were not paid prevailing wages. The employers cited reliance on a 1992 L&I policy memo to conclude there was not any prevailing wage requirement.

45 The truck drivers were doing a rolling, open tailgate dump as quickly as possible in a highly coordinated fill operation. The dozers would flatten the fill and the next truck was directed where to place its load. The prevailing wage act provides that "[t]he hourly wages to be paid to laborers, workers, or mechanics, upon all public works... of the state or any... political subdivision... shall be not less than the prevailing rate of wage for an hour's work in the same trade or occupation in the locality within the state where such labor is performed." RCW Silverstreak at 880.

46 Two conditions had to be satisfied to reach a prevailing wage requirement: (1) The drivers must deliver the materials, and (2) the drivers must perform an additional task that involves incorporation of the materials into the project. Estoppel (Equitable Estoppel, Detrimental Reliance). The 1992 L&I memo. The rule on materials delivery, (sand, gravel, crushed rock, concrete, asphalt, and similar materials) WAC was revised.

47 Sign up for the Prevailing Wage Electronic mailing lists: Verify a contractor (registration, workers comp, etc.): Debarment list (check for contractors not eligible to bid): On-line Prevailing Wage Information: Prevailing wages by county Scope of Work descriptions View approved Intents & Affidavits Contractor debarment information Forms and publications To Obtain General L&I Information: On-line at (main website) Call any L&I service location

48 Jim Christensen, Industrial Statistician, Program Manager (360) Ramona Christensen-Russell, Industrial Relations Specialist (360) Marcus Ehrlander, Industrial Relations Specialist (360) Laura Herman, Industrial Relations Specialist (360) Reasa Pearson, Industrial Relations Specialist (360) Leeann Bosshard, Industrial Relations Agent (360)

49 RCW Duties of disbursing officer upon completion of contract. Upon completion of a contract, the state, county, or other municipal officer charged with the duty of disbursing or authorizing disbursement or payment of such contracts shall forthwith notify the department of revenue, the employment security department, and the department of labor and industries of the completion of contracts over thirty-five thousand dollars. Such officer shall not make any payment from the retained percentage fund or release any retained percentage escrow account to any person, until he or she has received from the department of revenue, the employment security department, and the department of labor and industries certificates that all taxes, increases, and penalties due from the contractor, and all taxes due and to become due with respect to such contract have been paid in full or that they are, in each department's opinion, readily collectible without recourse to the state's lien on the retained percentage.

50 How workers compensation premiums are assessed How completed contracts are reviewed by L&I Things that cause delays in the release Helpful information for awarding agencies

51 RCW LIEN FOR LABOR, MATERIALS, TAXES ON PUBLIC WORKS (1)(a) Except as provided in (b) of this subsection, public improvement contracts must provide, and public bodies must reserve, a contract retainage not to exceed five percent of the moneys earned by the contractor as a trust fund for the protection and payment of: (i) The claims of any person arising under the contract; and (ii) the state with respect to taxes, increases, and penalties imposed pursuant to Titles 50, 51, and 82 RCW which may be due from such contractor. Title 51 worker s comp premiums Only required on contracts $35,000 and over RCW Duties of disbursing officer upon completion of contract

52 Workers compensation coverage applies to most Washington employees unless excluded by law or lack of jurisdiction Employees excluded from coverage: Reciprocal States (WAC ) Oregon, Idaho, Montana, Nevada, North & South Dakota, Utah, Wyoming* * Not all states are the same. Some reciprocal agreements exclude construction work By Law Owners, to include sole proprietors, partners, corporate officers, LLC member/managers (can elect coverage) By Jurisdiction Native American tribes, maritime (Longshore and Harbor Workers), federal employees

53 Contract Closeout Notice of Completion is sent to L&I, ESD, and DOR L&I reviews the workers compensation reporting and payment of all firms for the work completed on a public works contract FY 2014: 3857 NOC s reviewed, firms reviewed, $1.6 million collected in misclassified or unreported work

54 Construction Classification Basic classes are assigned for type and each phase of construction work performed Type of construction refers to wood-framed or other type of structure (concrete, steel, etc.), bridges, road work, etc. Phase of construction refers to type of work foundation, framing, interior finish carpentry, plumbing, paving, street lights, etc.

55 As of April 1, 2013 NOC s submitted to L&I without all Affidavit #s listed will be returned as incomplete

56 We compare and reconcile affidavits with quarterly reports PWIA (Prevailing Wage Intents and Affidavits): Affidavits list dates worked and hours by occupation Workers Compensation: Quarterly reports list hours by risk classification To compare, we must understand nature of work performed on the contract Description of contract work listed on the Notice of Completion Nature of work listed on Affidavit If unclear more information is requested

57 Possible Approval Delays: Misclassified hours (most common problem found) Not enough hours (Affidavit lists more hours than reported) Unreported workers Workers compensation Premiums owed for work completed during the contract Non-filed Affidavits

58 Affidavit of Wages Paid: L&I Account ITEM screen in LINIIS:

59 Affidavit of Wages Paid: L&I Account ITEM screen in LINIIS:

60 Resolution of primary compliance issues Two-step process: The premiums reported by each contractor must be correct and the premiums must be fully paid Step 1: Assessment We start with the reported premium liability (more than $100) Step 2: Collection If a contractor owes more than $100, we pursue collection

61 Once misreporting is confirmed with the contractor Amend: We allow two weeks for submission An is sent to the firm with the appropriate risk class(es) and request amended quarterly reports Assessment Notice: If not willing to amend adjustments are made and findings are issued to firm Audit referrals will be made for Unregistered firms/no L&I account but has workers Independent Contractor issues Multiple contracts with same issue Egregious non-compliance, a full audit will be made

62 Step 2: If debt is owed, we refer to Collections If owed by subcontractor, attempt collection from the GC/hiring firm (RCW ) If owed by GC, attempt collection from retainage If unable to collect from retainage, may attempt collection from the public body or performance bond (RCW )

63 Awarding agencies have special access to verify contractor s status with L&I to include: Contractor registration Citations & Violations Workers compensation status Detailed reporting history Assigned risk classes *Strike/Debarment status to be added soon

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69 L&I is working on easing our customers burdens and is rolling out the following upgrades over the next 8 months: Strike/Debar List (done!) Check out the on-line searchable database instead of the former PDF documents Certified Payroll System If a contractor has filed an Intent, they will have the ability to enter Certified Payroll records into our secured system Small Works Projects Online combined Intent/Affidavit form submittal (the $2,500 combined form and the $35K limited public works form) Contractor & Awarding Agency actions still required Project Dashboard PWIA (already done!) Awarding Agency Dashboard (pending) By your listed projects including Small Works Projects Assign prime contractor, links to Intent, Affidavit, and Certified Payroll records (if entered) Prime Contractor Dashboard (pending)

70 For more information and the latest Notice of Completion form: Review frequently asked questions: If you still have questions, contact Contract Release at: Phone: Opt #4

71 Jolene Skinner Management Analyst/Reviewer: ; Greg Taylor Field Auditor/Reviewer: ; Wendy Bowe Supervisor/Reviewer: ; Cassie Langton Reviewer: ;