AB632: Bill Text

AB632,2,2 An Act to repeal 66.293 (2), 66.293 (3) (b) and 103.49 (4); to renumber and amend 66.293 (3) (intro.), 66.293 (3) (a), 66.293 (3) (c), 66.293 (3) (d), 66.293 (3) (e), 66.293 (3) (f), 66.293 (3) (g), 66.293 (3) (h), 66.293 (3) (i), 66.293 (3) (j), 66.293 (3) (k), 66.293 (3) (m), 66.293 (3) (n), 103.49 (1) (c), 103.49 (3), 103.49 (5) and 103.49 (6); to amend 103.49 (1) (a), 103.49 (1) (b), 103.49 (1) (d), 103.49 (2), 103.49 (7) (a), 103.49 (7) (b), 103.49 (7) (d), 103.50 (1) (a), 103.50 (1) (b), 103.50 (1) (c), 103.50 (1) (d), 103.50 (2), 103.50 (3) (a), 103.50 (4), 103.50 (5), 103.50 (6), 103.50 (7) (a), 103.50 (7) (b), 103.50 (7) (c), 103.50 (8), 227.01 (13) (t), 946.15 (1) and 946.15 (2); to repeal and recreate 66.293 (1), 66.293 (5), 103.49 (3g) and 103.50 (3) (b); and to create 66.293 (3) (title), 66.293 (3) (br), 66.293 (3) (cm), 66.293 (4), 66.293 (7), 66.293 (9) (title), 66.293 (10) (title), 66.293 (11) (title), 66.293 (11) (b), 103.49 (1) (title), 103.49 (1) (c) 1. to 8., 103.49 (1) (e), 103.49 (1) (f), 103.49 (2m), 103.49 (3) (title), 103.49 (3) (b), 103.49 (3) (c), 103.49 (3) (d), 103.49 (3r), 103.49 (4r), 103.49 (5) (title), 103.49 (5) (a), 103.49 (5) (c), 103.49 (6m), 103.49 (7) (title), 103.50 (1) (e), 103.50 (2m), 103.50 (3) (c), 103.50 (3g), 103.50 (7) (d) and (e), 946.15 (3) and 946.15 (4) of the statutes; relating to: prevailing wage rates and hours of labor for workers employed on state or local public works projects and providing penalties.

Analysis by the Legislative Reference Bureau

Under current law, contracts to perform construction work on state or local public works projects, that is, state or local building projects, local street projects or state highway projects, are governed by provisions regarding prevailing wage rates and hours of labor. In general, those provisions require contractors and subcontractors performing work on a project to pay their employes working on the project the prevailing wage rate in the area from which labor for the project would normally be secured for the employe's trade or occupation and to pay those employes overtime pay, that is, 1.5 times the employe's usual hourly basic rate of pay, for all hours worked in excess of the prevailing hours of labor. This bill makes various changes to the prevailing wage and hours law as follows:

Determination of prevailing wages and hours

Under current law, a state agency or local governmental unit, before entering into a contract for a project of public works, other than a local street project, and the department of transportation (DOT), before entering into a contract for a state highway project, must request the department of industry, labor and human relations (DILHR) to determine the prevailing wage rate and prevailing hours of labor for each trade or occupation in the area from which labor for the project would normally be secured, except that DILHR may exempt a local governmental unit from requesting a determination if the local governmental unit adopts standards that are at least as high as those under the prevailing wage and hours law. Currently, a local governmental unit determines the prevailing wage rates for a local street project. This bill eliminates the responsibility of a local governmental unit to determine the prevailing wage rates for a local street project and instead requires a local government unit to request DILHR to determine the prevailing wage rates and hours of labor in the area of the proposed project for those trades or occupations that are commonly employed in the highway construction industry.

Under current law, the prevailing wage rate for a trade or occupation that is employed on a state or local building project is the wage, plus fringe benefits, paid to the majority of the persons working in that trade or occupation in the area from which labor for the project is normally secured or, if there is no rate at which a majority of the persons working in that trade or occupation in the area are paid, the prevailing wage rate is the rate paid to the largest number of individuals working in that trade or occupation in the area. Currently, the prevailing wage rate for a trade or occupation that is employed on a state highway project is the wage, plus fringe benefits, paid to the largest number of persons engaged in the same class of labor in the area from which labor for the project is secured. Currently, DILHR also determines truck rental rates for persons who own and operate their own trucks when working on a state highway project.

This bill eliminates truck rental rates and provides instead that a truck driver, including the owner-operator of a truck, must be paid at a prevailing wage rate that is determined by DILHR in the same manner as prevailing wage rates are determined for workers in other trades or occupations. The bill also provides one uniform method of determining prevailing wage rates for persons employed on all state and local public works projects. Under the bill, the prevailing wage rate for a trade or occupation that is employed on a state or local building project is the wage, plus fringe benefits, paid for a majority of the hours worked in that trade or occupation on building projects in the county in which the proposed project is located and in the counties contiguous to that county that are not subject to the prevailing wage law (private sector projects) or, if there is no rate at which a majority of the hours worked in the trade or occupation on private sector projects in those counties is paid, the prevailing wage rate is the average hourly wage, weighted by the number of hours worked, plus the average hourly fringe benefits, weighted by the number of hours worked, paid to all persons employed in the trade or occupation on private sector projects in those counties. For local street projects and state highway projects, the bill provides that wages, plus fringe benefits, paid for hours worked on public sector projects, as well as private sector projects, are also considered in determining the prevailing wage rate.

Under current law, the prevailing hours of labor for a trade or occupation in an area are the hours per day and per week worked within the area from which labor for a project would normally be secured by a larger number of persons than are employed in the trade or occupation for any other number of hours per day and per week, except that the prevailing hours of labor for any trade or occupation may not exceed 8 hours per day and 40 hours per week. This bill eliminates the prevailing hours of labor per day, but retains the prevailing hours of labor per week and specifies that the prevailing hours of labor may not include any hours worked on a Sunday or holiday so that, for example, if a person's normal work week consists of 4 10-hour days, the person need not be paid overtime pay for the 9th and 10th hours worked each day. Instead the person must be paid overtime pay only for the hours worked in excess of 40 in a week and any hours worked on a Sunday or holiday.

Under current law, when a local governmental unit or state agency requests DILHR to determine the prevailing wage rates and prevailing hours of labor for a proposed public works project, DILHR must make that determination within 30 days after the request. Current law also provides a procedure for local building projects under which any person may request a review of DILHR's determination if the person submits evidence showing that DILHR's determination does not represent the actual prevailing wage rate or prevailing hours of labor for a trade or occupation in the area of the proposed project. Current law, however, does not provide a similar review procedure for state building projects. This bill permits any person to request a review of a determination by DILHR of the prevailing wage rates or hours of labor for a state building project along the same lines that a person may request such a review under current law for a local building project. The bill also permits a local governmental unit or state agency to request a review of a determination by DILHR of the prevailing wage rates or hours of labor for a proposed public works project if the local governmental unit or state agency submits evidence, including wage rate or hours of labor information on at least 3 similar projects located in the city, village or town in which the proposed project is located, showing that DILHR's determination does not represent the prevailing wage rate or hours of labor in that city, village or town. If DILHR modifies its determination, then the prevailing wage rate or prevailing hours of labor is the prevailing wage rate or prevailing hours of labor in the city, village or town, rather than in the county and contiguous counties.

Under current law, DOT may appeal to the governor if it considers any portion of DILHR's determination of the prevailing wage rates or hours of labor for a state highway project to be incorrect. This bill permits a local governmental unit or a state agency other than DOT that believes that payment of any prevailing wage rate determined by DILHR for a project would pose a dire financial hardship to the local governmental unit or state agency to petition the secretary of industry, labor and human relations to reduce that prevailing wage rate for the project. If the secretary finds that payment of that prevailing wage rate would pose a dire financial hardship, the secretary may reduce that rate by not more than 20%.

Finally, with respect to the determination of prevailing wage rates and hours of labor, under current law, information relating to wages and hours submitted to DILHR by contractors, subcontractors and agents for the purpose of assisting DILHR in determining prevailing wage rates and hours of labor for a project are subject to inspection and copying by the public under the open records law. This bill requires DILHR to withhold from inspection and copying under the open records law all personally identifiable information submitted to DILHR by contractors, subcontractors and agents for the purpose of assisting DILHR in determining prevailing wage rates and hours of labor.

Employes and projects covered

Under current law, contractors, subcontractors and agents performing work on a state or local public works project must pay to employes working on the site of the project the prevailing wage rate plus overtime pay for all hours worked in excess of the prevailing hours of labor. Currently, employes engaged in the processing, manufacture or delivery of materials or products by or for commercial establishments that have a fixed place of business from which they regularly supply those materials or products are not covered under the prevailing wage and hours law, except that employes who deliver mineral aggregate, such as sand, gravel and stone, to the site of the project and deposit the mineral aggregate substantially in place are covered under the prevailing wage and hours law.

This bill further clarifies which employes are covered under the prevailing wage and hours law. Under the bill, in addition to the employes specifically covered under current law, employes are also covered for all time spent in transporting material or spoil from the site of a project and returning to the project and employes who are engaged in manufacturing or furnishing materials, articles, supplies or equipment on the site of a project or from a facility dedicated exclusively, or nearly so, to a project are covered under the prevailing wage and hours of labor law.

The bill also specifies that a volunteer working on a state or local building project or on a local highway project is not covered under the prevailing wage and hours of labor law.

Current law provides a threshold below which the prevailing wage and hours law does not apply to a state or local building project. Currently, the prevailing wage and hours law does not apply to a project involving a single trade if the estimated cost of completion of the project is below $11,000 or to a project involving multiple trades if the estimated cost of completion of the project is below $110,000. Those figures are adjusted by DILHR every 2 years in proportion to changes in the cost of construction. This bill eliminates the single-trade threshold and raises the multiple-trade threshold to $150,000 effective on the publication of the bill and to $200,000 effective on January 1, 1999, with DILHR to begin adjusting that amount every 2 years, but no sooner than January 1, 2001.

Under current law, state and local public works projects that receive $2,000 or more in federal funding are subject to a federal prevailing wage and hours law known as the Davis-Bacon act. This bill exempts from coverage under the state prevailing wage and hours law projects that are covered under the Davis-Bacon act.

Finally, with respect to coverage of employes and projects, contracts currently made by a state agency for the erection, construction, remodeling or repairing of a public building are subject to the prevailing wage and hours law. This bill specifies that contracts made by state agencies for the demolition of a public building are also covered by that law.

Administration and enforcement

Under current law, the prevailing wage rates and prevailing hours of labor determined by a local governmental unit or DILHR for a local public works project must be incorporated into and made a part of any contract for that project. Currently, the prevailing wage rates and prevailing hours of labor determined by DILHR for a state public works project must be specifically set forth in the proposal and contract for that project. This bill requires the prevailing wage rates and hours of labor for all state and local public works projects to be physically incorporated into and made a part of any proposal, contract and subcontract for that project.

Under current law, DILHR, on the request of any person, must inspect the payroll records of a contractor, subcontractor or agent performing work on a local building project to ensure compliance with the prevailing wage and hours law. If the contractor, subcontractor or agent who is subject to the inspection is found to be in compliance, the person requesting the inspection must pay for the cost of the inspection. Current law, however, does not require DILHR to make a similar inspection of the payroll records of a contractor, subcontractor or agent performing work on a state building project. This bill requires DILHR, on the request of any person, to inspect the payroll records of a contractor, subcontractor or agent performing work on a state building project to ensure compliance with the prevailing wage and hours law. Under the bill, if the contractor, subcontractor or agent who is subject to the inspection is found to be in compliance and if the person making the request is a covered employe, DILHR must charge that person the actual cost of the inspection. If the contractor, subcontractor or agent who is subject to the inspection is found to be in compliance and if the person making the request is not a covered employe, DILHR must charge that person $250 or the actual cost of the inspection, whichever is greater.

Under current law, before a local governmental unit may authorize final payment for a public works project, each contractor performing work on the project must file with the local governmental unit an affidavit stating that the contractor has complied with the prevailing wage and hour law and that the contractor has received evidence of compliance from each of the contractor's agents and subcontractors. Current law, however, does not require a contractor performing work on a state building project to file a similar affidavit before the state agency contracting for the work may authorize final payment. This bill requires agents and subcontractors who have performed work on a state or local public works project to file with the contractor an affidavit stating that the agent or subcontractor has complied with the prevailing wage and hours law before the contractor may authorize final payment to the agent or subcontractor. The bill also requires a contractor who has performed work on a state or local public works project to file with the local governmental unit or state agency contracting for the work an affidavit stating that the contractor has complied with the prevailing wage and hours law and has received affidavits of compliance from each of his or her agents and subcontractors. The local governmental unit or state agency may not authorize final payment until the contractor's affidavit has been filed in proper form and order. If a local governmental unit or state agency authorizes final payment before the contractor's affidavit has been filed in proper form and order or if DILHR determines that any employe covered by the prevailing wage and hours law has not or may not have been paid the prevailing wage rate or overtime pay for all hours worked in excess of the prevailing hours of labor, the local governmental unit or state agency is liable for all back wages owed to the employe up to the amount of the final payment.

Penalties

Current law provides for a variety of penalties that may be imposed for a violation of the prevailing wage and hours law. Currently, a contractor who does not pay the wage scale set by a local governmental unit for a local street project may be fined not more than $500 per offense. Currently, a contractor who does not pay the prevailing wage rate or overtime pay for all hours worked in excess of the prevailing hours of labor on a local building project is liable for the amount of back wages owed plus an equal amount as liquidated damages. Currently, a state officer or employe who executes a contract for a state building project without complying with the prevailing wage and hours law, and a contractor, subcontractor or agent who does not pay the prevailing wage rate or overtime pay for all hours worked in excess of the prevailing hours of labor on a state building project, may be fined not more than $200 or imprisoned for not more than 6 months, or both, with each day counting as a separate offense. Currently, a contractor, subcontractor or agent performing work on a state highway project who violates the prevailing wage and hours law may be fined not less than $50 nor more than $200 or imprisoned for not more than 18 months, or both, with each day counting as a separate offense. This bill eliminates the liability of a state employe or officer who executes a contract for a state building project without complying with the prevailing wage and hours law. The bill also standardizes the penalties for a contractor, subcontractor or agent performing work on a state or local public works project who violates the prevailing wage and hours law at a fine of not more than $200 or imprisonment for not more than 6 months, or both, with each day counting as a separate offense.

Finally, in addition to penalties for failure to pay the prevailing wage or to pay overtime pay for all hours worked in excess of the prevailing hours of labor, current law also prohibits an employer from inducing an employe employed on a local public works project to give up, waive or return any part of the compensation to which the employe is entitled under DILHR's prevailing wage determine (commonly known as a "kickback"). Current law, however, does not prohibit employers performing work on state public works from inducing employes on those projects to pay kickbacks. This bill extends the coverage of the kickback prohibition to employers performing work on state public works projects. The bill also specifically prohibits 2 other types of kickbacks as follows: 1) reducing the hourly basic rate of pay normally paid to an employe for work done on a nonpublic works project during a week in which the employe works both on a public works project and a nonpublic works project; and 2) inducing an employe to permit any part of the wages to which the employe is entitled for work done on a project that is subject to the prevailing wage law to be deducted from his or her pay and deposited with a labor organization for the purpose of subsidizing bids on other projects (commonly referred to as "targeting").

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:

AB632, s. 1 Section 1. 66.293 (1) of the statutes is repealed and recreated to read:

AB632,7,2 66.293 (1) Definitions. In this section:

AB632,7,6 (a) "Area" means the county in which a proposed project that is subject to this section is located and those counties that are contiguous to that county or, if the department modifies a wage determination under sub. (3) (br), "area" means the city, village or town in which a proposed project that is subject to this section is located.

AB632,7,8 (b) "Department" means the department of industry, labor and human relations.

AB632,7,9 (c) "Hourly basic rate of pay" has the meaning given in s. 103.49 (1) (b).

AB632,8,4 (d) "Local governmental unit" means a political subdivision of this state, a special purpose district in this state, an instrumentality or corporation of such a political subdivision or special purpose district, a combination or subunit of any of the foregoing or an instrumentality of the state and any of the foregoing.

AB632,8,5 (e) "Prevailing hours of labor" has the meaning given in s. 103.49 (1) (c).

AB632,8,22 (f) 1. "Prevailing wage rate" for any trade or occupation engaged on any project of public works, except highway, street or bridge construction, in any area means the hourly basic rate of pay, plus the hourly contribution for health insurance benefits, vacation benefits, pension benefits and any other bona fide economic benefit, paid directly or indirectly, for a majority of the hours worked in the trade or occupation on projects, except highway, street or bridge construction, in the area that are not subject to this section, or if there is no rate at which a majority of the hours worked in the trade or occupation on projects, except highway, street or bridge construction, in the area that are not subject to this section is paid, then the prevailing wage rate for any trade or occupation engaged on any project of public works, except highway, street or bridge construction, in any area shall be the average hourly basic rate of pay, weighted by the number of hours worked, plus the average hourly contribution, weighted by the number of hours worked, for health insurance benefits, vacation benefits, pension benefits and any other bona fide economic benefit, paid directly or indirectly to all persons employed in that trade or occupation on projects, except highway, street or bridge construction, in that area that are not subject to this section.

AB632,9,10 2. "Prevailing wage rate" for any trade or occupation in any area engaged on any project of highway, street or bridge construction means the hourly basic rate of pay, plus the hourly contribution for health insurance benefits, vacation benefits, pension benefits and any other bona fide economic benefit, paid directly or indirectly, for a majority of the hours worked in the trade or occupation in the area, or if there is no rate at which a majority of the hours worked in the trade or occupation in the area is paid, then the prevailing wage rate for any trade or occupation engaged on any project of highway, street or bridge construction in any area shall be the average hourly basic rate of pay, weighted by the number of hours worked, plus the average hourly contribution, weighted by the number of hours worked, for health insurance benefits, vacation benefits, pension benefits and any other bona fide economic benefit, paid directly or indirectly to all persons employed in that trade or occupation in that area.

AB632,9,11 (g) "Secretary" means the secretary of industry, labor and human relations.

AB632,9,12 (h) "Truck driver" has the meaning given in s. 103.49 (1) (f).

AB632, s. 2 Section 2. 66.293 (2) of the statutes is repealed.

AB632, s. 3 Section 3. 66.293 (3) (title) of the statutes is created to read:

AB632,9,15 66.293 (3) (title) Prevailing wage rates and hours of labor.

AB632, s. 4 Section 4. 66.293 (3) (intro.) of the statutes is renumbered 66.293 (3) (am) and amended to read:

AB632,9,25 66.293 (3) (am) Every municipality local governmental unit, before making a contract by direct negotiation or soliciting bids on a contract, for any project of public works except, including highway, street or bridge construction, shall apply to the department of industry, labor and human relations to ascertain to determine the prevailing wage rate, and prevailing hours of labor and hourly basic pay rates in all trades and occupations for each trade or occupation required in the work contemplated. The department shall determine the prevailing wage rate, and prevailing hours of labor and hourly basic pay rates for each trade or occupation under s. 103.49, make its determination within 30 days after receiving the request and file the same with the municipality local governmental unit applying therefor.

AB632,10,15 (bm) A Any person may request for the a review of any portion of a wage determination may be made within 30 days from after the determination date if the person submits evidence is submitted with the request showing that the prevailing wage rate or prevailing hours of labor for any given trade or occupation included in the determination does not represent the prevailing wage rate or prevailing hours of labor for that trade or occupation in the area where the proposed project is located. Such evidence shall include wage rate and hours of labor information for the contested trade or occupation on at least one similar project located in the municipality area where the proposed project is located and on which some work has been performed during the current or any of within the previous 12 months. The department shall affirm or modify the original determination within 15 days from after the date on which the department receives the request for review. Reference to such

AB632,11,6 (dm) The prevailing wage rates and prevailing hours of labor determined by the department or a municipality local governmental unit exempted under par. (d) sub. (6) shall be published in the notice issued for the purpose of securing bids for the project. If any contract or subcontract for a project of public works except, including highway, street or bridge construction, is entered into, the prevailing wage rates and prevailing hours of labor determined by the department or exempted municipality local governmental unit shall be physically incorporated into and made a part of the contract or subcontract and may not be changed during the time that the contract or subcontract is in force. No laborer, worker or mechanic employed directly upon the site of the project by the contractor or by a subcontractor, agent or other person, doing or contracting to do any part of the work, person described in sub. (4) may be paid less than the prevailing wage rate in the same or most similar trade or occupation; nor may he or she be permitted to work a greater number of hours per day or per calendar week than the prevailing hours of labor determined under this subsection, unless he or she is paid for all hours worked in excess of the prevailing hours of labor at a rate of at least 1-1/2 1.5 times his or her hourly basic rate of pay.

AB632, s. 5 Section 5. 66.293 (3) (a) of the statutes is renumbered 66.293 (11) (a) and amended to read:

AB632,11,23 66.293 (11) (a) Any contractor, subcontractor or agent thereof, who fails to pay the prevailing wage rate of wages determined by the department under this subsection or sub. (3) or who pays less than 1-1/2 1.5 times the hourly basic rate of pay for all hours worked on the project in excess of the prevailing hours of labor determined under this subsection sub. (3), shall be liable to the employes any affected employe in the amount of their his or her unpaid minimum wages or their his or her unpaid overtime compensation and in an additional equal amount as liquidated damages. Action An action to recover the liability may be maintained in any court of competent jurisdiction by any one or more employes employe for and in behalf of that employe or those employes and other employes similarly situated. No employe shall may be a party plaintiff to any such action unless the employe consents in writing to become such a party and the consent is filed in the court in which the action is brought. The Notwithstanding s. 814.04 (1), the court shall, in addition to any judgment awarded to the plaintiff, allow a reasonable attorney's fee attorney fees and costs to be paid by the defendant.

AB632, s. 6 Section 6. 66.293 (3) (b) of the statutes is repealed.

AB632, s. 7 Section 7. 66.293 (3) (br) of the statutes is created to read:

AB632,12,13 66.293 (3) (br) In addition to the review under par. (bm), the local governmental unit that requested the wage determination under this subsection may request a review of any portion of a wage determination within 30 days after the determination date if the state agency submits evidence with the request showing that the prevailing wage rate or prevailing hours of labor for any given trade or occupation included in the determination does not represent the prevailing wage rate or prevailing hours of labor for that trade or occupation in the city, village or town in which the proposed project is located. That evidence shall include wage rate and hours of labor information for the contested trade or occupation on at least 3 similar projects located in the city, village or town in which the proposed project is located and on which some work has been performed within the previous 12 months. The department shall affirm or modify the original determination within 15 days after the date on which the department receives the request for review.

AB632, s. 8 Section 8. 66.293 (3) (c) of the statutes is renumbered 66.293 (5) and amended to read:

AB632,13,10 66.293 (5) (title) Nonapplicability . This subsection section does not apply to any highway, street or bridge construction or to any public works project, including highway, street or bridge construction, to which 40 USC 276a applies or to any public works project involving more than one trade for which the estimated project cost of completion is below $3,500 where a single trade is involved and $35,000 where more than one trade is involved on such project (after hearing these dollar amounts shall be adjusted by the department $150,000 or an amount determined by the department under this subsection. The department shall adjust that dollar amount every 2 years, the first adjustment to be made not sooner than January 1, 1976 2001. The adjustments shall be in proportion to any changes in construction costs since the effective date of the dollar amounts established under this subsection immediately prior to each adjustment); nor does this subsection apply to wage rates and hours of employment of laborers, workmen or mechanics engaged in the processing or manufacture of materials or products or to the delivery thereof by or for commercial establishments which have a fixed place of business from which they regularly supply such processed or manufactured materials or products, except that this subsection does apply to laborers, workmen or mechanics delivering mineral aggregate such as sand, gravel or stone which is incorporated into the work under the contract by depositing the material substantially in place, directly or through spreaders, from the transporting vehicle.

AB632, s. 9 Section 9. 66.293 (3) (cm) of the statutes is created to read:

AB632,13,16 66.293 (3) (cm) The department shall withhold from inspection and copying under s. 19.35 (1) all personally identifiable information submitted to the department by contractors, subcontractors and agents thereof for the purpose of assisting the department in determining prevailing wage rates and prevailing hours of labor under this subsection.

AB632, s. 10 Section 10. 66.293 (3) (d) of the statutes is renumbered 66.293 (6) and amended to read:

AB632,13,25 66.293 (6) (title) Exemptions. The department of industry, labor and human relations, upon petition of any municipality local governmental unit, shall issue an order exempting the municipality local governmental unit from applying to the department for a determination under this subsection sub. (3) when it is shown that an ordinance or other enactment of the municipality local governmental unit sets forth the standards, policy, procedure and practice resulting in standards as high or higher than those under s. 103.49 this section.

AB632, s. 11 Section 11. 66.293 (3) (e) of the statutes is renumbered 66.293 (10) (a) and amended to read:

AB632,14,9 66.293 (10) (a) Each contractor, subcontractor or agent thereof participating in performing work on a project covered by this subsection that is subject to this section shall keep full and accurate records clearly indicating the name and trade or occupation of every laborer, workman or mechanic employed by the contractor, subcontractor or agent in connection with the project person described in sub. (4) and an accurate record of the number of hours worked by each employe of those persons and the actual wages paid therefor.

AB632, s. 12 Section 12. 66.293 (3) (f) of the statutes is renumbered 66.293 (8) and amended to read:

AB632,14,17 66.293 (8) (title) Posting. For the information of the employes working on the project, the prevailing wage rates and prevailing hours of labor determined by the department or exempted municipality local governmental unit and the provisions of pars. (a) and (e) subs. (10) (a) and (11) (a) shall be kept posted by the employer local governmental unit in at least one conspicuous and easily accessible place at the site of the project.

AB632, s. 13 Section 13. 66.293 (3) (g) of the statutes is renumbered 66.293 (9) (b) and amended to read:

AB632,14,24 66.293 (9) (b) Each Upon completion of a project and before final payment for completing a project, each agent or subcontractor shall furnish the contractor with evidence of compliance with an affidavit stating that the agent or subcontractor has complied fully with the requirements of this subsection section. A contractor may not authorize final payment until that affidavit is filed in proper form and order.

AB632, s. 14 Section 14. 66.293 (3) (h) of the statutes is renumbered 66.293 (9) (c) and amended to read:

AB632,15,17 66.293 (9) (c) Upon completion of the a project and prior to before final payment therefor for completing a project, each contractor shall file with the municipality local governmental unit an affidavit stating that the contractor has complied fully with the provisions and requirements of this subsection section and that the contractor has received evidence an affidavit of compliance from each of the contractor's agents and subcontractors. No municipality may A local governmental unit may not authorize a final payment until such an affidavit is filed in proper form and order. If a local governmental unit authorizes a final payment before such an affidavit is filed in proper form and order or if the department determines that any person specified in sub. (4) has been or may have been paid less than the prevailing wage rate or less than 1.5 times the hourly basic rate of pay for all hours worked in excess of the prevailing hours of labor and requests that the local governmental unit withhold all or part of the final payment, but the local governmental unit fails to do so, the local governmental unit is liable for all back wages payable up to the amount of that final payment.

AB632, s. 15 Section 15. 66.293 (3) (i) of the statutes is renumbered 66.293 (10) (b) and amended to read:

AB632,16,4 66.293 (10) (b) The department of industry, labor and human relations or the contracting municipality local governmental unit may demand and examine, and it shall be the duty of every contractor, subcontractor and agent thereof to furnish to the department and local governmental unit, copies of any payrolls and other records and information relating to the wages paid laborers, workmen or mechanics on to persons described in sub. (4) for work to which this subsection section applies. The department may inspect records in the manner provided in ch. 101. Every contractor, subcontractor or agent performing work on a project that is subject to this section is subject to the requirements of ch. 101 relating to the examination of records.

AB632, s. 16 Section 16. 66.293 (3) (j) of the statutes is renumbered 66.293 (9) (a) and amended to read:

AB632,16,15 66.293 (9) (a) When the department of industry, labor and human relations finds that a municipality local governmental unit has not requested a prevailing wage rate determination or that a local governmental unit, contractor or subcontractor has not physically incorporated a prevailing wage rate determination into the a contract or subcontract as required under this subsection section, the department shall notify the municipality local governmental unit, contractor or subcontractor of such noncompliance and shall file the prevailing wage rate determination with the municipality local governmental unit, contractor or subcontractor within 30 days after such notice.

AB632, s. 17 Section 17. 66.293 (3) (k) of the statutes is renumbered 66.293 (10) (d) and amended to read:

AB632,16,21 66.293 (10) (d) The provisions of s. Section 101.02 (5) (f), (12), (13) and (14) apply applies to this subsection section. Section 111.322 (2m) applies to discharge or other discriminatory acts arising in connection with any proceeding under this subsection section, including proceedings under par. sub. (11) (a).

AB632, s. 18 Section 18. 66.293 (3) (m) of the statutes is renumbered 66.293 (10) (c) and amended to read:

AB632,17,9 66.293 (10) (c) If requested by any person, the department shall inspect the payroll records of the contractors, subcontractors or agents performing work on a project that is subject to this section to ensure compliance with this section. The cost of the inspection shall be paid by the person making the request, if If the contractor, subcontractor, or agent subject to the inspection is found to be in compliance and if the person making the request is a person specified in sub. (4), the department shall charge the person making the request the actual cost of the inspection. If the contractor, subcontractor or agent subject to the inspection is found to be in compliance and if the person making the request is not a person specified in sub. (4), the department shall charge the person making the request $250 or the actual cost of the inspection, whichever is greater.

AB632, s. 19 Section 19. 66.293 (3) (n) of the statutes is renumbered 66.293 (12) and amended to read:

AB632,18,4 66.293 (12) (title) Debarment. (a) Except as provided under subds. 2. and 3. pars. (b) and (c), the department of industry, labor and human relations shall notify any municipality local governmental unit applying for a determination under sub. (3) (intro.) and any municipality local governmental unit exempted under par. (d) sub. (6) of the names of all persons whom the department has found to have failed to pay the prevailing wage rate determined under this subsection sub. (3) or has found to have paid less than 1.5 times the hourly basic rate of pay for all hours worked on a project in excess of the prevailing hours of labor determined under this subsection sub. (3) at any time in the preceding 3 years. The department shall include with any such name the address of such person and shall specify when and how such person has failed to pay the prevailing wage rate determined under this subsection and when and how such person has failed to pay less than 1.5 times the hourly basic rate of pay for all hours worked on a project in excess of the prevailing hours of labor determined under this subsection. No municipality local governmental unit may award any contract to such person unless otherwise recommended by the department or unless at least 3 years have elapsed from the date the department issued its findings or the date of final determination by a court of competent jurisdiction, whichever is later.

AB632,18,10 (b) The department may not include in a notification under subd. 1. par. (a) the name of any person on the basis of having let work to a person whom the department has found to have failed to pay the prevailing wage rate determined under this subsection sub. (3) or has found to have paid less than 1.5 times the hourly basic rate of pay for all hours worked on a project in excess of the prevailing hours of labor determined under this subsection sub. (3).

AB632,18,14 (c) This paragraph subsection does not apply to any contractor, subcontractor or agent who in good faith commits a minor violation of this section, as determined on a case-by-case basis through administrative hearings with all rights to due process afforded to all parties or who has not exhausted or waived all appeals.

AB632,18,23 (d) Any person submitting a bid on a project that is subject to this section shall be required, on the date the person submits the bid, to identify any construction business in which the person, or a shareholder, officer, partner or member of the person, if the person is a business, owns, or has owned at least a 25% interest on the date the person submits the bid or at any other time within 3 years preceding the date the person submits the bid, if the business has been found to have failed to pay the prevailing wage rate determined under this subsection sub. (3) or to have paid less than 1.5 times the hourly basic rate of pay for all hours worked on a project in excess of the prevailing hours of labor determined under this subsection sub. (3).

AB632,18,25 (e) The department shall promulgate rules to administer this paragraph subsection.

AB632, s. 20 Section 20. 66.293 (4) of the statutes is created to read:

AB632,19,6 66.293 (4) Covered employes. (a) All of the following employes shall be paid the prevailing wage rate determined under sub. (3) and may not be permitted to work a greater number of hours per calendar week than the prevailing hours of labor determined under sub. (3), unless they are paid for all hours worked in excess of the prevailing hours of labor at a rate of at least 1.5 times their hourly basic rate of pay:

AB632,19,14 1. All laborers, workers, mechanics and truck drivers employed on the site of a project that is subject to this section, or employed in delivering mineral aggregate such as sand, gravel or stone that is immediately incorporated into the work, and not stockpiled or further transported by truck, on the site of a project that is subject to this section by depositing the material substantially in place, directly or through spreaders, from the transporting vehicle, or employed in transporting excavated material or spoil from and returning to the site of a project that is subject to this section.

AB632,19,19 2. All laborers, workers, mechanics and truck drivers employed in the manufacturing or furnishing of materials, articles, supplies or equipment on the site of a project that is subject to this section or from a facility dedicated exclusively, or nearly so, to the project by a contractor, subcontractor, agent or other person performing any work on the site of the project.

AB632,20,2 (b) Notwithstanding par. (a), a laborer, worker, mechanic or truck driver who is regularly employed in the processing, manufacturing or delivery of materials or products by or for a commercial establishment that has a fixed place of business from which the establishment regularly supplies processed or manufactured materials or products is not entitled to receive the prevailing wage rate determined under sub. (3) or to receive at least 1.5 times his or her hourly basic rate of pay for all hours worked in excess of the prevailing hours of labor determined under sub. (3).

AB632,20,7 (c) Notwithstanding par. (a), a person who volunteers to perform work on a project that is subject to this section is not entitled to receive the prevailing wage rate determined under sub. (3) or to receive at least 1.5 times his or her hourly basic rate of pay for all hours worked in excess of the prevailing hours of labor determined under sub. (3).

AB632, s. 21 Section 21. 66.293 (5) of the statutes, as affected by 1995 Wisconsin Act .... (this act), is repealed and recreated to read:

AB632,20,17 66.293 (5) Nonapplicability. This section does not apply to any public works project, including highway, street or bridge construction, to which 40 USC 276a applies or to any public works project involving more than one trade for which the estimated project cost of completion is below $200,000 or an amount determined by the department under this subsection. The department shall adjust that dollar amount every 2 years, the first adjustment to be made not sooner than January 1, 2001. The adjustments shall be in proportion to any changes in construction costs since the effective date of the dollar amounts established under this subsection.

AB632, s. 22 Section 22. 66.293 (7) of the statutes is created to read: