Senate passes bill expanding records access for prevailing wage enforcement

(The Center Square) – Amid privacy concerns brought up during discussion on the floor, the Washington State Senate has passed a bill expanding access to records for the purpose of enforcing prevailing wage laws.

Engrossed Senate Substitute Bill 5701 would require the state Department of Labor & Industries to provide certified payroll records to joint labor-management committees, or JLMCs, upon request but strictly limits the use of these records to filing complaints about prevailing wage violations.

A prevailing wage mandate generally requires governments to pay a predetermined wage for work it contracts out rather than use a negotiated or market-based pay rate.

Supporters of ESSB 5701 argue that it is a necessary step to protect workers from wage theft and ensure that public funds are used to support fair labor practices. They emphasize that the bill will help level the playing field for contractors who comply with wage laws, because it addresses discrepancies that can arise when some contractors underbid by paying lower wages.

However, the bill has faced opposition from those who argue that the changes could lead to increased administrative burdens and costs for contractors. Critics are especially concerned that expanded access to records may result in privacy issues or misuse of information.

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During floor action on March 5, an amendment by the bill’s sponsor, Sen. Bill Ramos, D-Yakima, was passed requiring L&I to, upon request, provide a copy of an employer’s certified payroll records to an interested party rather than a joint labor-management cooperation committee.

Sen. Curtis King, R-Yakima, was not impressed by the amendment. He said he was worried that disseminating personal information could result in it ending up in the wrong hands.

“Tell me who the heck that is?” he asked in reference to what the term “interested party” actually means. “I have a good idea. But we don’t need to be going here, folks. We really don’t. I would ask for a ‘no’ vote on this amendment.”

Sen. Rebecca Saldaña, D-Seattle, attempted to answer King’s query.

“What ‘interested party’ is referring to is both the labor and the employer that are part of that committee, and so I do think it is reasonable, and it’s clarifying, and I would ask the support of this amendment,” she said.

According to a Senate report on the bill, “The definition of interested party for the purposes of prevailing wage laws is modified to include a Taft-Hartley trust and JLMC.”

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A Taft-Hartley trust, also known as a Taft-Hartley fund or multi-employer plan, is a benefit fund for unionized employees. It’s created by a collective bargaining agreement between labor unions and employers.

Prior to the final floor vote on the bill, Ramos explained what he hoped to achieve with his sponsored legislation.

“The purpose here is to have labor and management work together to solve issues of prevailing wage to make sure those wages are paid properly,” he said. “And get both parties to the table with the information needed so they can sort through that and assure that prevailing wages are being paid where they’re supposed to be.”

King remained unconvinced.

“Part of the bill says it can’t be used for unionization,” he said. “Well, it’s easy to say. But what are you going to do when it’s used that way?”

There is no penalty for using personal information in unionization efforts, King said.

“This goes far beyond what I think is reasonable and fair.”

The bill passed on a party-line vote of 30 to 19.

It now goes to the Senate for consideration.

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