HB 1387
In CommitteeHouse
Prevailing wage/public works
Concerning the prevailing wages on public works.
This status may be delayed. See Action History below for the latest updates.
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 changes how Washington sets prevailing wages for public works projects — specifically, it shifts the method for determining wages in areas with multiple collective bargaining agreements. Before May 31, 2027, the highest wage rate applies; after that date, the most common (majority or plurality) rate applies, except in ship building/repair where the highest rate remains. It also pauses wage surveys for unionized trades and extends the time workers have to claim unpaid wages.
- Requires the Department of Labor and Industries (via its industrial statistician) to set prevailing wages for public works projects based on collective bargaining agreements where they exist.
- For projects with contracts bid or awarded before May 31, 2027, prevailing wages are set by adopting the highest rate among collective bargaining agreements in a county for a given trade or occupation.
- For projects with contracts bid or awarded on or after June 1, 2027, the prevailing wage is set based on the majority (or plurality) rate among collective bargaining agreements — not automatically the highest — except for ship building and ship repair, where the highest rate still applies.
- For trades or occupations without collective bargaining agreements, the Department must continue using wage and hour surveys (or other methods if surveys are not feasible).
- Suspends the usual wage survey process for trades with collective bargaining agreements until May 31, 2027, and extends the time workers have to recover unpaid wages until the final wage determination is made.
Who is affected
- Construction and public works workers — Workers on public works projects may see changes in the wage rates they are paid, especially depending on whether their trade has collective bargaining agreements and whether the project is bid/awarded before or after June 1, 2027.
- Unions and labor representatives — Must follow new rules for calculating prevailing wages, especially regarding how to choose among multiple collective bargaining agreements, and may be asked to provide input on wage rates for certain trades.
- Public agencies and government contractors — May need to adjust bidding and budgeting practices for public projects, especially after June 1, 2027, when new rules for determining prevailing wages take effect.
- Contractors and employers on public works projects — May be required to appeal wage determinations if they believe the wrong rate was applied, and must follow new appeal procedures.
Pro/Con Analysis
Potential Benefits (5)
Retaining the highest-wage standard for shipbuilding and repair ensures strong wage floors in a high-risk, union-dominant sector — supporting higher safety standards, training investment, and skilled labor retention in a critical state industry (e.g., Puget Sound Navy Base, commercial shipyards).
Public SafetyPeopleRef: Sec. 1(5)Continuing wage surveys for trades without CBA coverage helps prevent wage suppression in non-union sectors (e.g., drywall, insulation, some HVAC), preserving baseline wage competitiveness and reducing employer pressure to undercut local rates in competitive bidding.
Business & EmploymentPeopleRef: Sec. 1(6)The pre-2027 “highest rate” rule provides wage stability and predictability for workers and contractors during the transition — reducing risk of sudden wage drops and supporting budgeting for public agencies and small contractors during a period of economic uncertainty.
FinancialPeopleRef: Sec. 1(3)Requiring input from labor and management signatories to identify the majority rate may improve transparency and reduce arbitrary wage determinations — potentially lowering legal challenges and appeal costs for local governments managing public works projects.
Local GovernmentLean peopleRef: Sec. 1(4)(a)Tolling the wage recovery period until final determination prevents workers from being forced to choose between filing lawsuits and continuing work on projects — though this benefit is modest, as delayed payment still harms cash-strapped workers.
Rights & LibertiesPeopleRef: Sec. 1(1), (2)
Potential Concerns (5)
After May 31, 2027, shifting to majority/plurality wage setting may reduce prevailing wages in counties where multiple CBA rates exist but the highest rate is not the most common — potentially suppressing wages for workers on public works projects, especially in trades with fragmented union contracts (e.g., electricians, plumbers), even if the highest rate remains in place for shipbuilding.
Business & EmploymentIndustryRef: Sec. 1(4)(a)The new appeal process and requirement for contractors to prove the *actual* majority rate — rather than automatically applying the highest rate — increases administrative burden and legal risk for contractors, especially smaller firms lacking resources to contest determinations, potentially discouraging bidding on public projects.
Business & EmploymentIndustryRef: Sec. 1(4)(a) & (b)Lower wages on public infrastructure projects (e.g., roads, schools) may reduce worker retention, morale, and training investment — potentially increasing safety risks on job sites, especially in high-risk trades like heavy construction and demolition.
Public SafetyIndustryRef: Sec. 1(4)(a)The shift to majority/plurality wage setting disproportionately benefits large, multi-employer unions and contractors that dominate collective bargaining in certain trades — they can structure agreements to ensure their rate becomes the majority, locking out smaller unions and non-union contractors who cannot match scale or bargaining power.
FinancialIndustryRef: Sec. 1(4)(a)Extending the tolling period for wage claims until final determination may delay workers’ access to back pay, effectively prolonging financial uncertainty for low-wage laborers who rely on timely payment to meet basic needs — especially harmful for day laborers and immigrant workers without savings buffers.
Rights & LibertiesIndustryRef: Sec. 1(2)
Who Is Most Affected
Workers on public works projects in counties with multiple CBA rates may see lower wages after 2027 if their union’s rate is not the majority — especially affecting non-dominant unions (e.g., smaller craft unions in electrical or plumbing trades).
Large, multi-employer unions that represent the majority of workers in a trade (e.g., United Brotherhood of Carpenters, International Brotherhood of Electrical Workers) are likely to see their wage rates preserved or reinforced; smaller or newer unions may lose bargaining leverage.
Large general contractors with multi-employer bargaining experience may benefit from predictable wage setting; small, non-union contractors may struggle to compete if wages fall below market or if they lack resources to appeal determinations.
Local governments (cities, counties, school districts) may face lower labor costs on public works after 2027 — saving taxpayer money — but could face increased legal challenges or delays if wage determinations are contested.
State agencies (especially L&I) will likely face increased enforcement and appeal-processing demands — increasing costs — but may gain more consistent wage data from CBA-based determinations, reducing long-term survey costs.