LRB-2069/2
GMM:kjf:rs
2011 - 2012 LEGISLATURE
June 16, 2011 - Introduced by Representatives Williams, Nass, Brooks, Tauchen,
Strachota, J. Ott, A. Ott, Ballweg, Bernier, Jacque, Kapenga, Kestell,
Knodl, Knudson, Kuglitsch, T. Larson, LeMahieu, Litjens, Marklein,
Meyer, Murtha, Nerison, Petrowski, Petryk, Rivard, Thiesfeldt, Tiffany,
Tranel, Van Roy, Wynn, Ziegelbauer, Ripp, Spanbauer, Kerkman, Steineke,
Mursau, Farrow, Craig, Kleefisch, Knilans
and Vos, cosponsored by
Senators Galloway, Lasee, Grothman, Moulton, Leibham, Kedzie and Lazich.
Referred to Committee on Jobs, Economy and Small Business.
AB183,2,9 1An Act to repeal 66.0903 (1) (am), 66.0903 (4) (b) 1., 66.0903 (4) (b) 2., 66.0903
2(10) (am), 66.0903 (11) (a) 2., 66.0904, 103.49 (1) (am), 103.49 (2m) (b) 1., 103.49
3(2m) (b) 2., 103.49 (5) (am), 103.49 (6m) (ag), 103.50 (2m) (b) 1., 103.50 (2m) (b)
42. and 104.001 (3) (am); to renumber 66.0903 (2) (d); to renumber and
5amend
66.0903 (2) (c), 66.0903 (4) (b) (intro.), 103.49 (1m) (b), 103.49 (1m) (c),
6103.49 (2m) (b) (intro.) and 103.50 (2m) (b) (intro.); to consolidate, renumber
7and amend
66.0903 (11) (a) 1., 3. and 5. and 103.49 (1m) (intro.) and (a); to
8amend
19.36 (12), 66.0903 (1) (d), 66.0903 (1) (dr), 66.0903 (1) (g) 2., 66.0903
9(3) (av), 66.0903 (3) (dm), 66.0903 (5) (a), 66.0903 (5) (b), 66.0903 (8), 66.0903
10(10) (c), 66.0903 (12) (a), 103.49 (1) (bj), 103.49 (1) (d) 2., 103.49 (3) (ar), 103.49
11(3g) (a), 103.49 (3g) (b), 103.49 (5) (c), 103.50 (1) (d) 2., 103.50 (4m), 103.503
12(title), 103.503 (1) (a), 103.503 (1) (c), 103.503 (1) (e), 103.503 (1) (g), 103.503 (2),
13103.503 (3) (a) 2., 109.09 (1), 111.322 (2m) (c), 227.01 (13) (t), 946.15 (title),
14946.15 (1), 946.15 (2), 946.15 (3) and 946.15 (4); and to create 66.0903 (1) (em),

166.0903 (1) (hm), 66.0903 (1m), 66.0903 (4) (d), 66.0903 (4) (e), 66.0903 (5) (f),
2103.49 (1) (br), 103.49 (1) (em), 103.49 (2m) (d), 103.49 (2m) (e), 103.49 (3g) (f)
3and 103.49 (3g) (g) of the statutes; relating to: applicability of the prevailing
4wage law; the thresholds for applicability of that law; calculation of the
5prevailing wage rate; the treatment of volunteers, truck drivers,
6subjourneypersons, and incidental work under that law; the submission to the
7Department of Workforce Development of payroll records of persons performing
8work that is subject to that law; the inspection of those records; and the
9remedies for a violation of that law.
Analysis by the Legislative Reference Bureau
Under the current prevailing wage law, certain laborers, workers, mechanics,
and truck drivers employed on a state or local project of public works must be paid
at the rate paid for a majority of the hours worked in the person's trade or occupation
in the county in which the project is located, as determined by the Department of
Workforce Development (DWD), and may not be required or permitted to work a
greater number of hours per day and per week than the prevailing hours of labor, that
is, no more than ten hours per day and 40 hours per week, unless they are paid 1.5
times their basic rate of pay (overtime pay) for all hours worked in excess of the
prevailing hours of labor.
2009 Wisconsin Act 28 made various changes to the prevailing wage law,
including: 1) expanding the applicability of that law to cover publicly funded private
construction projects and certain projects acquired by, or dedicated to, a local
governmental unit or the state; 2) lowering the threshold for applicability of that law
to a project of public works; 3) requiring contractors to submit payroll records to
DWD; 4) requiring DWD to charge a requester for the cost of inspecting payroll
records only if the request is frivolous; and 5) permitting DWD to order back pay and
liquidated damages for a violation of that law. This bill alters or eliminates those
changes. The bill also makes certain changes relating to: 1) statewide uniformity
of the prevailing wage law; 2) calculation of the prevailing wage rate; 3)
nonapplicability of the prevailing wage law to small municipalities and small
residential projects; and 4) the treatment of volunteers, truck drivers,
subjourneypersons, and incidental work under the prevailing wage law.
Specifically, with respect to altering or eliminating changes made by 2009
Wisconsin Act 28
:
1. Publicly funded private construction projects, turnkey projects, and
acquired or dedicated projects.
2009 Wisconsin Act 28 expanded the

applicability of the prevailing wage law to cover publicly funded private construction
projects that receive $1,000,000 or more in direct financial assistance from a local
governmental unit. Under prior law, only projects of public works contracted for by
the state or a local governmental unit were subject to the prevailing wage law. This
bill eliminates coverage of publicly funded private construction projects under the
prevailing wage law, so that under the bill only projects of public works are covered
under the prevailing wage law.
2009 Wisconsin Act 28 specified that the prevailing wage law applies to: 1) a
project in which the completed facility is leased, lease purchased, or otherwise
acquired by, or dedicated to, a local governmental unit or the state in lieu of the local
governmental unit or the state contracting for the erection, construction, repair,
remodeling, or demolition of the facility (turnkey project); and 2) a road, street,
bridge, sanitary sewer, or water main project in which the completed road, street,
bridge, sanitary sewer, or water main is acquired by, or dedicated to, a local
governmental unit or the state, for ownership or maintenance by the local
governmental unit or the state (acquired or dedicated project). This bill specifies that
the prevailing wage law does not apply to a turnkey project or to an acquired or
dedicated project.
2. Threshold for applicability to public works projects. 2009 Wisconsin
Act 28
lowered the threshold for applicability of the prevailing wage law to a project
of public works so that a project of public works for which the estimated project cost
of completion is below $25,000 is not subject to that law. The act also eliminated the
authority of DWD to adjust that threshold based on changes in construction costs.
Under prior law, that threshold was $234,000 for a multiple-trade project of public
works and $48,000 for a single-trade project of public works and DWD was
authorized to adjust those amounts annually based on changes on construction costs.
This bill sets the threshold for applicability of the prevailing wage law to a
single-trade project of public works at an estimated project cost of completion of
$50,000 and the threshold for applicability of that law to a multiple-trade project of
public works at an estimated project cost of completion of $250,000. The bill,
however, does not restore the authority of DWD to adjust those thresholds.
3. Submission of payroll records. 2009 Wisconsin Act 28 required
contractors performing work on a project of public works or a publicly funded private
construction project that is subject to the prevailing wage law to submit to DWD on
a monthly basis, in electronic format, certified records indicating the name and trade
or occupation of every person performing work that is subject to the prevailing wage
law and an accurate record of the number of hours worked by each of those persons
and the actual wages paid for those hours worked (payroll records) or, if all persons
performing work on the project are covered under a collective bargaining agreement
that provides for wage rates that are not less than the prevailing wage rate, to submit
to DWD during the first month of the project, in electronic format, copies of all
collective bargaining agreements pertaining to the project. This bill eliminates that
requirement.
4. Inspection of payroll records. 2009 Wisconsin Act 28 required DWD to
charge a person who requests DWD to inspect a contractor's payroll records for the

purpose of ensuring compliance with the prevailing wage law the actual cost of the
inspection if the contractor is found to be in compliance with that law and if the
request is found to be frivolous. Prior law required DWD to charge that cost if the
contractor was found to be in compliance with the prevailing wage law, but did not
require the additional finding that the request was frivolous. This bill eliminates
that additional finding so that under the bill DWD must charge for the cost of
inspecting a contractor's payroll records if the contractor is found to be in compliance
with the prevailing wage law, whether or not the request is frivolous.
5. Remedies for a violation of the prevailing wage law. 2009 Wisconsin
Act 28
permitted DWD to order a contractor who failed to pay the prevailing wage
rate to pay to any affected employee the amount of unpaid wages due, plus 100
percent of that amount as liquidated damages. Prior law permitted only a court to
order that payment and permitted that payment to be ordered only to an employee
employed on a local project of public works, not to an employee employed on a state
project of public works. This bill eliminates the authority of DWD to order that
payment so that under the bill only a court may order that payment and permits that
payment to be ordered only to an employee employed on a local project of public
works, not to an employee employed on a state project of public works.
Finally, the bill makes changes to certain areas of the prevailing wage law that
were not substantially affected by 2009 Wisconsin Act 28. Specifically:
1. Statewide concern; uniformity. The bill states that the enactment of
prevailing wage ordinances or other enactments by local governmental units would
be logically inconsistent with, would defeat the purpose of, and would go against the
spirit of the state prevailing wage law. Therefore, as an enactment of statewide
concern for the purpose of providing a uniform prevailing wage law throughout the
state, the bill prohibits local governmental units from enacting prevailing wage
ordinances or other enactments and provides that a local prevailing wage ordinance
or other enactment that is in effect on the day before the effective date of the bill is
void.
2. Calculation of prevailing wage rate. Under current law, "prevailing
wage rate" is defined as the hourly basic rate of pay, plus the hourly contribution for
bona fide economic benefits, paid for a majority of the hours worked in a trade or
occupation in an area, except that, if there is no rate at which a majority of those
hours is paid, "prevailing wage rate" means the average hourly basic rate of pay, plus
the average hourly contribution for bona fide economic benefits, paid for the highest
51 percent of hours worked in a trade or occupation in the area. Current law defines
"bona fide economic benefit" as an economic benefit for which an employer makes
irrevocable contributions or escrow payments at least quarterly.
This bill defines "prevailing wage rate," when there is no rate at which a
majority of the hours worked in a trade or occupation in an area is paid, as the
average hourly basic rate of pay, plus the average hourly contribution for bona fide
economic benefits, paid for all hours worked in a trade or occupation in the area. The
bill also deletes the definition of "bona fide economic benefit."
3. Nonapplicability to small municipalities and residential properties.
The bill exempts from the prevailing wage law a project of public works contracted

by a city, village, or town having a population of less than 10,000 and a project of
public works involving the erection, construction, repair, remodeling, or demolition
of a residential property containing two dwelling units or less.
4. Treatment of volunteers, truck drivers, subjourneypersons, and
incidental work.
Under current law, the prevailing wage law does not apply to a
project of public works in which the labor for the project is provided by unpaid
volunteers. This bill provides that the prevailing wage law does not apply to work
performed on a project of public works for which the local governmental unit or state
agency contracting for the project is not required to compensate any contractor,
subcontractor, contractor's or subcontractor's agent, or individual for performing the
work.
Under current law, the prevailing wage law does not apply to a truck driver who
is regularly employed to pick up or deliver materials or products from a commercial
establishment that has a fixed place of business from which the establishment
regularly supplies processed or manufactured materials or products unless: 1) the
truck driver is employed to pick up mineral aggregate from its source and deliver that
aggregate to the site of a project of public works; or 2) the truck driver is employed
to pick up excavated material from the site of such a project and transport that
material away from that site. This bill provides that the prevailing wage law does
not apply to a truck driver who is employed to pick up and deliver mineral aggregate
to the site of a project of public works or to pick up and transport excavated material
away from such a site.
The bill also permits a contractor, subcontractor, or contractor's or
subcontractor's agent to employ a subjourneyperson on any project that is subject to
the prevailing wage law. The bill defines a "subjourneyperson" as a worker, other
than an apprentice, laborer, heavy equipment operator, or truck driver, who
primarily works under the direction of, and who assists, a skilled trade employee by
frequently using the tools of a specific trade.
Finally, the bill permits a contractor performing work on a project to which the
prevailing wage law applies to employ a worker in incidental work outside of the
worker's usual trade or occupation for not more than 25 percent of the hours worked
by the worker in a workweek.
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB183, s. 1 1Section 1. 19.36 (12) of the statutes is amended to read:
AB183,6,72 19.36 (12) Information relating to certain employees. Unless access is
3specifically authorized or required by statute, an authority shall not provide access
4to a record prepared or provided by an employer performing work on a project to

1which s. 66.0903, 66.0904, 103.49, or 103.50 applies, or on which the employer is
2otherwise required to pay prevailing wages, if that record contains the name or other
3personally identifiable information relating to an employee of that employer, unless
4the employee authorizes the authority to provide access to that information. In this
5subsection, "personally identifiable information" does not include an employee's
6work classification, hours of work, or wage or benefit payments received for work on
7such a project.
AB183, s. 2 8Section 2. 66.0903 (1) (am) of the statutes is repealed.
AB183, s. 3 9Section 3. 66.0903 (1) (d) of the statutes is amended to read:
AB183,6,1710 66.0903 (1) (d) "Local governmental unit" means a political subdivision of this
11state, a special purpose district in this state, an instrumentality or corporation of
12such a political subdivision or special purpose district, a combination or subunit of
13any of the foregoing or an instrumentality of the state and any of the foregoing.
14"Local governmental unit" includes a regional transit authority created under s.
1566.1039 and the southeastern regional transit authority created under s. 59.58 (7).
16"Local governmental unit" does not include a city, village, or town having a
17population of less than 10,000.
AB183, s. 4 18Section 4. 66.0903 (1) (dr) of the statutes is amended to read:
AB183,6,2519 66.0903 (1) (dr) "Minor service or maintenance work" means a project of public
20works that is limited to minor crack filling, chip or slurry sealing, or other minor
21pavement patching, not including overlays, that has a projected life span of no longer
22than 5 years
; the depositing of gravel on an existing gravel road applied solely to
23maintain the road; road shoulder maintenance; cleaning of drainage or sewer ditches
24or structures; or any other limited, minor work on public facilities or equipment that
25is routinely performed to prevent breakdown or deterioration.
AB183, s. 5
1Section 5. 66.0903 (1) (em) of the statutes is created to read:
AB183,7,32 66.0903 (1) (em) "Multiple-trade project of public works" has the meaning
3given in s. 103.49 (1) (br).
AB183, s. 6 4Section 6. 66.0903 (1) (g) 2. of the statutes is amended to read:
AB183,7,145 66.0903 (1) (g) 2. If there is no rate at which a majority of the hours worked in
6the trade or occupation on projects in the area is paid, "prevailing wage rate" for any
7trade or occupation engaged in the erection, construction, remodeling, repairing or
8demolition of any project of public works in any area means the average hourly basic
9rate of pay, weighted by the number of hours worked, plus the average hourly
10contribution, weighted by the number of hours worked, for health insurance benefits,
11vacation benefits, pension benefits and any other bona fide economic benefit, paid
12directly or indirectly for all hours worked at the hourly basic rate of pay of the
13highest-paid 51% of hours worked
in that trade or occupation on projects in that
14area.
AB183, s. 7 15Section 7. 66.0903 (1) (hm) of the statutes is created to read:
AB183,7,1716 66.0903 (1) (hm) "Single-trade project of public works" has the meaning given
17in s. 103.49 (1) (em).
AB183, s. 8 18Section 8. 66.0903 (1m) of the statutes is created to read:
AB183,8,219 66.0903 (1m) Statewide concern; uniformity. (a) In this subsection, "publicly
20funded private construction project" means a construction project in which the
21developer, investor, or owner of the project receives direct financial assistance from
22a local governmental unit for the erection, construction, repair, remodeling,
23demolition, including any alteration, painting, decorating, or grading, of a private
24facility, including land, a building, or other infrastructure. "Publicly funded private
25construction project" does not include a project of public works or a housing project

1involving the erection, construction, repair, remodeling, or demolition of any of the
2following:
AB183,8,43 1. A residential property, if the project is supported by affordable housing
4grants, home improvement grants, or grants from a local housing trust fund.
AB183,8,55 2. A residential property containing 4 dwelling units or less.
AB183,8,76 3. A residential property that contains retail, office, or commercial components,
7if the project is intended to increase the supply of affordable housing in a community.
AB183,8,178 (b) The legislature finds that the enactment of ordinances or other enactments
9by local governmental units requiring laborers, workers, mechanics, and truck
10drivers employed on projects of public works or on publicly funded private
11construction projects to be paid the prevailing wage rate and to be paid at least 1.5
12times their hourly basic rate of pay for hours worked in excess of the prevailing hours
13of labor would be logically inconsistent with, would defeat the purpose of, and would
14go against the spirit of this section and the repeal of s. 66.0904, 2009 stats. Therefore,
15this section shall be construed as an enactment of statewide concern for the purpose
16of providing uniform prevailing wage rate and prevailing hours of labor
17requirements throughout the state.
AB183,8,2518 (c) A local governmental unit may not enact and administer an ordinance or
19other enactment requiring laborers, workers, mechanics, and truck drivers
20employed on projects of public works or on publicly funded private construction
21projects to be paid the prevailing wage rate and to be paid at least 1.5 times their
22hourly basic rate of pay for hours worked in excess of the prevailing hours of labor
23or any similar ordinance or enactment. Any such ordinance or other enactment that
24is in effect on the day before the effective date of this subsection .... [LRB inserts
25date], is void.
AB183, s. 9
1Section 9. 66.0903 (2) (c) of the statutes is renumbered 66.0903 (5) (d) and
2amended to read:
AB183,9,63 66.0903 (5) (d) A project in which the completed facility is leased, purchased,
4lease purchased, or otherwise acquired by, or dedicated to, a local governmental unit
5in lieu of the local governmental unit contracting for the erection, construction,
6repair, remodeling, or demolition of the facility.
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