An Awarding Agency is a public agency or a private-not-for-profit organization that uses any public dollars for funding of a project.
A public agency includes, but is not limited to:
If you answered no to both, then you likely do not have a prevailing wage project and may not need to proceed. If you are unsure, contact us for guidance.
If you answered yes to either, proceed to question 2:
This work includes:
Parties involved in public works contracts must include prevailing wage requirements in bid documents and contracts. The parties include:
Wage Rates – this could be done one of two ways:
Retain a printed version of the rates as part of your records.
If you determine the project meets the definition of residential construction, you must state this in your bid and contract documents.
The Awarding Agency will be responsible for the difference between residential and commercial wage rates if you make the determination it was residential and it was not.
Note: In most cases, prevailing wages may not be applicable to design work (architects and engineers, for example), software work, computer programming and others. When prevailing wages are not required, employers do not need to file Intents and Affidavits. Contact us if you need guidance.
There is a bidding exception to emergency work but prevailing wage requirements still apply.
An emergency means unforeseen circumstances beyond the control of the awarding agency that either:
In the case of an emergency, tell the contractor this is a prevailing wage job. 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 and Affidavit forms.
A prime contractor and subcontractors must be "responsible bidders" to bid on a public works project. They must meet these requirements, including but not limited to:
Note: Create a "My L&I" account to sign up for the Awarding Agency Portal . You can check the status of the items above for multiple contractors at the same time with the portal.
For projects bid after July 1, only one Combined Intent/Affidavit form is required for the alternative filing process. Awarding agencies can still use the Combined Intent/Affidavit form for contracts of up to $5,000 (including tax), with no form filing fee.
The form for Limited Public work contracts from $2,501-$50,000 is discontinued.
These changes resulted from passage of SB 5268 in 2023. See RCW 39.12.040.
To meet the state's prevailing wage requirements, there are forms that must be filed and approved by L&I before any payments are made.
The awarding agency cannot make any payments for work by a contractor or subcontractor until their Statement of Intent to Pay Prevailing Wages (Intent) form is submitted to and approved by L&I.
Check for approved Intents. Contractors should file the Intent immediately after the contract is awarded and, if possible, before work begins. You as the awarding agency have the option of creating the information for the project through your Awarding Agency Portal.
Alternate Filing Process – Combined Intent/Affidavit forms - Two options: Up to $2,500 Small Works, & Limited Public Works up to $50,000 (for projects bid before July 1, 2024)
Two choices of combined Intent to Pay and Affidavit of Wages Paid forms may be used, when appropriate, at the option of the public awarding agency:
Alternate Filing Process – Combined Intent/Affidavit forms - Up to $5,000 (including tax) (for projects bid after July 1, 2024)
File the combined form online through L&I's Awarding Agency and Contractor portals. The online system checks that the contractor is in good standing with L&I and verifies the wage rate used is at least the prevailing rate of wage for the classification the contractor will use. Please note: paper copies of the combined forms are no longer accepted.
Limits on use of the alternative combined form filing options:
During the project, you as the awarding agency should review Intents as they are filed. Failure to review the Intents can lead to delays in closing out a project and releasing money that has been retained.
You can also review certified payroll reports filed by contractors. This can be a good compliance tool and may help you catch errors early on in the project.
Sign in to your Awarding Agency Portal to review intents and affidavits, request and review certified payrolls, and manage your projects.
Review intents and certified payroll reports for the following:
It's the work performed, not the title of the employee, that determines the classification. See the Trade – Scopes of Work page for a description of the classifications.
Note: There are journey level and apprentice wage rates. Trainees aren't necessarily apprentices and if a trainee is not an apprentice, then they must be paid the journey level wage rate. To be an apprentice, the employee must be enrolled in a state-approved apprenticeship program.
State registered apprentices can be paid reduced prevailing wage rates on public works projects within the appropriate prevailing wage classification. All other employees are paid full journey level prevailing wages.
For example: An apprentice carpenter doing carpenter work will be paid at an apprentice wage rate. If the same worker does work in another trade, such as ironworker, then they must be paid at the journey level wage rate for ironworker. Report each apprentice on the affidavit.
The contractor or subcontractor is responsible for using the correct classification. Contractors must use the classification that best fits the work being performed. Remember, a single employee may be doing work under more than one classification. This means the employer must either track the time worked by the employee in each classification, or pay the highest rate for all hours of work. See Trade - Scopes of Work for a description of the trade and occupation classifications.
Use the wage rates for the county in which the job site is located for the on-site work. For off-site fabrication or work, use the county in which the off-site work is performed. Contractors may list multiple counties on their paperwork. Look up Wage Rates.
The effective date for prevailing wage rate(s) is the date the prime contractor's bid is due, or if the contract is not awarded within 6 months of the bid due date, then use the contract award date. Subcontractors will use the same effective date as the prime contractor. Use the effective date in the Look up Wage Rates page.
Usual (fringe) benefits, are contributions included as part of the prevailing wage. Employers are not required to provide these benefits, but when they do, the amounts paid by the contractor counts as credit toward the prevailing wages paid. Benefits required by law such as sick leave or industrial insurance cannot be included in the usual (fringe) benefits. For prevailing wage, usual (fringe) benefits include employer contributions for:
Example: To calculate prevailing wage that includes usual benefit costs:
The prevailing wage rate is $30 per hour. The employer's usual benefits total $5 per hour. The wage rate paid to the employee is $25. The wage and benefit calculation is $25 wage + $5 benefits = $30 per hour.
Note: Cash fringe benefits paid to the employee on the same or separate paycheck is not considered a fringe benefit, such payments are considered part of the employee's wage.
For projects where both the state prevailing wage law and the federal Davis-Bacon and related acts apply, contractors must comply with both laws. For contractors, this involves meeting the most demanding pay requirement of the two laws and completing the required paperwork for each law.
Supervisors and foremen need to get paid prevailing wage for time doing "hands-on" work within a work week if:
No. While owner/operators that meet the specified requirements are exempt from paying themselves the prevailing rate of wage, they are still required to complete all necessary paperwork, including the Intent and Affidavit forms.
Contractors are required to keep accurate payroll records for all work on a public works project for 3 years from the date you accept the public works project as completed. If requested, contractors must file certified payroll report records with L&I and you as the awarding agency within 10 days. You can request and view these records within your Awarding Agency Portal.
Certified payroll report records must include the following:
Note: To be certified, the payroll records must include the state affirmation page. The affirmation page is a signed statement that the contractor is adhering to the Washington State Prevailing Wage Law and includes correct and complete information.
Other documents must be filed. These include:
Note: You can use your Awarding Agency Portal to verify all Intents and Affidavits are filed along with the Notice of Completion.
Warranty work is additional work on the same public works contract. Here is what you need to know:
Washington State Department of Labor & Industries
Prevailing Wage Section
PO Box 44540
Olympia, WA 98504-4540