EHB 1173
SignedHouse
High-hazard facility wages
Concerning wages for journeypersons in high-hazard facilities.
How does a bill become law?
- Introduced: The bill is filed and assigned a number.
- Committee: A subject-matter committee holds hearings, takes public testimony, and decides whether to advance the bill.
- Floor Vote: The full chamber (House or Senate) debates and votes on the bill.
- Opposite Chamber: The bill repeats the committee and floor vote process in the other chamber.
- Governor: The Governor reviews the bill and decides whether to sign or veto it.
- Signed: The bill has been signed into law.
AI Analysis
This bill updates definitions in Washington’s Skilled and Trained Workforce Act to ensure workers on high-hazard facility projects (like refineries or chemical plants) are paid at or above the prevailing wage rate, and clarifies which types of work on such sites are covered. It removes flexibility for contractors to pay skilled workers less than prevailing wages and tightens pay standards for journeypersons.
- Clarifies that 'on-site work' excludes certain non-construction activities (e.g., security, environmental testing, warranty repairs) from the scope of the skilled workforce requirements.
- Revises the definition of 'skilled journeyperson' to require payment at least at the prevailing wage rate (as defined in RCW 39.12.010), removing previous language allowing pay based on the 75th percentile of occupational wages.
- Maintains the definition of 'skilled and trained workforce' as requiring all workers to be either registered apprentices or skilled journeypersons, and to meet apprenticeship graduation and advanced safety training requirements.
- Amends RCW 49.80.010 to update definitions used throughout Chapter 49.80 RCW (the Skilled and Trained Workforce Act).
Who is affected
- Construction and maintenance contractors — Contractors and subcontractors working on high-hazard facilities (e.g., refineries, chemical plants) must now ensure their crews meet specific workforce composition and pay standards to be considered a 'skilled and trained workforce.'
- Skilled journeypersons and registered apprentices — Workers in apprenticeable occupations at high-hazard facilities may see higher wages if they qualify as 'skilled journeypersons,' since pay must now align with the prevailing wage rate (not just local market rates).
- Public owners and government agencies — State agencies and public owners of high-hazard facilities may rely on this law to ensure contractor crews meet safety and workforce quality standards on projects involving public funds.
- Workers in excluded service roles — Workers in non-construction roles (e.g., environmental testing, security, warranty repair) are explicitly excluded from the new wage rules, even if working at high-hazard sites.
Pro/Con Analysis
Stronger case for benefits
Potential Benefits (5)
Ensures skilled journeypersons on high-hazard facilities earn at least the public-sector prevailing wage—typically higher than market rates in rural or non-union areas—lifting wages for workers who often lack strong bargaining power.
Business & EmploymentPeopleRef: Sec. 1(7)(b) (new language)Strengthens workforce quality by requiring either formal apprenticeship graduation or equivalent on-the-job experience *and* prevailing wage compensation, aligning incentives for safety training and retention of experienced personnel on high-risk sites.
Public SafetyPeopleRef: Sec. 1(7)(a) & (b)Explicitly excludes non-construction roles (e.g., warranty repairs, cleaning) from skilled workforce requirements, reducing the risk that untrained or underpaid workers perform safety-critical tasks on high-hazard sites—aligning responsibility with qualified personnel.
Public SafetyPeopleRef: Sec. 1(3) (exclusions list)Reinforces the value of formal apprenticeships by tying the 'skilled journeyperson' designation to completion of approved programs or equivalent experience, supporting long-term career pathways and reducing credential inflation.
EducationLean peopleRef: Sec. 1(7)(b) (new language)Higher wages for journeypersons may improve access to healthcare for lower- and middle-income workers by increasing employer-sponsored coverage eligibility or enabling private insurance purchases—though this is indirect and modest.
HealthcarePeopleRef: Sec. 1(7)(b) (new language)
Potential Concerns (5)
Increases labor costs for contractors on high-hazard facility projects by mandating prevailing wage rates for skilled journeypersons, which may reduce contractor margins and discourage bidding on public projects—especially for smaller firms with tighter budgets.
Business & EmploymentPeopleRef: Sec. 1(7)(b) (new language)Excludes non-construction roles (e.g., security, environmental testing, warranty repair) from prevailing wage requirements—even when performed at high-hazard sites—potentially suppressing wages for service-sector workers who are often lower-paid and lack union representation.
Business & EmploymentPeopleRef: Sec. 1(3) (exclusions list)While the bill aims to improve safety through skilled workforce requirements, eliminating the 75th percentile wage floor removes a de facto incentive for firms to retain highly experienced (and potentially safer) workers who may not have formal apprenticeship credentials.
Public SafetyLean peopleRef: Sec. 1(7)(b) (new language)Higher labor costs on industrial construction may indirectly raise costs for related infrastructure (e.g., pipelines, industrial housing support facilities), potentially limiting affordable housing development near industrial zones—though this is speculative and indirect.
HousingLean peopleRef: Sec. 1(7)(b) (new language)Creates a two-tiered wage system on high-hazard sites, where construction workers receive prevailing wages but adjacent service workers (e.g., environmental testers, security) do not—potentially weakening solidarity and collective bargaining power across site-adjacent labor groups.
Business & EmploymentLean peopleRef: Sec. 1(3) (exclusions list)
Who Is Most Affected
Skilled journeypersons and registered apprentices on high-hazard facility projects will likely see higher wages due to the mandatory prevailing wage requirement, improving earnings stability and reducing wage suppression from non-union labor competition.
Contractors—especially small- and mid-sized firms—may face higher labor compliance costs and reduced competitiveness on public bids, particularly if they previously relied on lower-wage labor for skilled roles. Large firms with union partnerships may adapt more easily.
Workers in non-construction roles (e.g., security, environmental testing, warranty repair) are explicitly excluded from prevailing wage protections, even on high-hazard sites—potentially suppressing wages and benefits for these often-lower-paid, non-union workers.
State agencies and public owners gain stronger contractual leverage to enforce skilled workforce standards on high-hazard projects, improving project safety and quality control—but may face higher upfront costs due to increased labor compliance.
Apprenticeship programs benefit from reinforced credentialing standards, potentially increasing enrollment and legitimacy—but may face pressure to expand capacity if demand surges due to wage premiums.