Legislation adopted in 2018 changed how prevailing wages are determined – and resulted in dramatic increases to some job classes subject to prevailing wage rates. In particular, AWC heard from cities about spikes in landscape service costs. A number of stakeholders have indicated that these and other changes in prevailing wage were “unintended consequences” of the bill that weren’t expected and that could be readdressed during this legislative session.

Last fall, cities and AWC asked the Department of Labor & Industries (L&I) to take another look at the new rate. In a response at the beginning of January, L&I stood by the new rates and suggested other action such as legislation would be necessary to make changes.

SB 5493 passed during the 2018 session and took effect this summer. The bill requires L&I to establish the prevailing wage rate based on collective bargaining agreements (CBAs), where possible. For trades with more than one collective bargaining agreement, the higher rate controls. For trades that do not have collective bargaining agreements, the prevailing wage must be established by wage and hour surveys.

The new method has created significant spikes in prevailing wages for landscape laborers because they are lumped into the job classification for landscape construction (WAC 269-127-01346). AWC has been talking to other stakeholders and L&I about possible solutions, including creating a new scope of work specific to landscape maintenance that is distinct from landscape construction. The separation would allow L&I to relook at the wage rates for the new classification separately from construction work which would likely result in a lower rate. AWC is working with L&I to determine if these changes can be made quickly via the rulemaking process and without legislative action.

In addition to cities’ concerns about the impact on landscape work, others have also expressed concerns about the impacts of the changes to prevailing wage on affordable housing providers. The construction industry also has expressed concerns about how L&I has determined which CBA in a county is the prevailing CBA. We are still expecting legislation to be introduced that will address these concerns.

AWC will continue to work with other stakeholders and L&I to find a solution that will mitigate the impacts created by the “unintended consequences” of the 2018 legislation.