Amendment ASA1-AB39

2025 - 2026 LEGISLATURE

LRBs0109/1

EVM/JK/MIM:klm

ASSEMBLY SUBSTITUTE AMENDMENT 1, TO ASSEMBLY BILL 39

September 11, 2025 - Offered by Representative Sinicki.

AB39-ASA1,2,4 An Act to repeal 16.75 (1p), 16.855 (1p), 66.0901 (1) (ae), 66.0901 (1) (am), 66.0901 (6m), 66.0901 (6s), 84.54, 86.51, 101.1472, 111.04 (3) and 947.20; to renumber and amend 108.221 (1) (a) and 108.221 (2); to consolidate, renumber and amend 111.04 (1) and (2); to amend 66.0129 (5), 66.0901 (6), 66.0903 (1) (c), 66.0903 (1) (f), 66.0903 (1) (j), 66.0903 (1m) (b), 102.125 (2), 102.125 (3), 102.85 (1) (a), 102.85 (1) (b), 102.85 (2) (intro.), 103.005 (12) (a), 103.503 (1) (a), 103.503 (1) (e), 103.503 (2), 103.503 (3) (a) 2., 109.09 (1), 111.06 (1) (c), 111.06 (1) (e), 111.06 (1) (i), 111.322 (2m) (a), 111.322 (2m) (b) and 978.05 (6) (a); to repeal and recreate 66.0903 (1) (g) and 103.503 (1) (g); to create 16.40 (24), 19.36 (12), 66.0903 (1) (a), (am), (b), (cm), (dr), (em), (hm) and (im), 66.0903 (2) to (12), 71.738 (1b), 71.738 (3h), 71.738 (3m), 71.815, 84.41 (3), 101.147, 101.19 (1g) (m), 102.125 (1m), 102.85 (1) (c), 102.85 (1) (d), 102.85 (2j), 102.85 (2k), 103.005 (4m), 103.49, 103.50, 104.001 (4), 106.04, 108.221 (1) (a) 2., 108.221 (2) (b), 111.01, 111.322 (2m) (c), 182.01 (8), 227.01 (13) (t), 229.682 (2), 229.8275, 601.41 (14), 943.395 (1) (e) and 946.15 of the statutes; relating to: public employment.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB39-ASA1,1 Section 1. 16.40 (24) of the statutes is created to read:

AB39-ASA1,2,13 16.40 (24) Worker misclassification outreach. Direct all departments to provide targeted educational outreach regarding worker misclassification in English, Spanish, and other languages spoken by a significant number of individuals in this state, to employers, workers, and organizations that serve vulnerable populations, including individuals with limited English proficiency. The outreach shall emphasize the appropriate departments to contact and the rights of individuals to remain anonymous when reporting worker misclassification.

AB39-ASA1,2 Section 2. 16.75 (1p) of the statutes is repealed.

AB39-ASA1,3 Section 3. 16.855 (1p) of the statutes is repealed.

AB39-ASA1,4 Section 4. 19.36 (12) of the statutes is created to read:

AB39-ASA1,3,4 19.36 (12) Information relating to certain employees. Unless access is specifically authorized or required by statute, an authority may not provide access to a record prepared or provided by an employer performing work on a project to which s. 66.0903, 103.49, or 103.50 applies, or on which the employer is otherwise required to pay prevailing wages, if that record contains the name or other personally identifiable information relating to an employee of that employer, unless the employee authorizes the authority to provide access to that information. In this subsection, “personally identifiable information” does not include an employee’s work classification, hours of work, or wage or benefit payments received for work on such a project.

AB39-ASA1,5 Section 5. 66.0129 (5) of the statutes is amended to read:

AB39-ASA1,3,10 66.0129 (5) Bids for construction. The nonprofit corporation shall let all contracts exceeding $1,000 for the construction, maintenance or repair of hospital facilities to the lowest responsible bidder after advertising for bids by the publication of a class 2 notice under ch. 985. Section Sections 66.0901 applies and 66.0903 apply to bids and contracts under this subsection.

AB39-ASA1,6 Section 6. 66.0901 (1) (ae) of the statutes is repealed.

AB39-ASA1,7 Section 7. 66.0901 (1) (am) of the statutes is repealed.

AB39-ASA1,8 Section 8. 66.0901 (6) of the statutes is amended to read:

AB39-ASA1,4,2 66.0901 (6) Separation of contracts; classification of contractors. In public contracts for the construction, repair, remodeling or improvement of a public building or structure, other than highway structures and facilities, a municipality may bid projects based on a single or multiple division of the work. Public contracts shall be awarded according to the division of work selected for bidding. Except as provided in sub. (6m), the The municipality may set out in any public contract reasonable and lawful conditions as to the hours of labor, wages, residence, character and classification of workers to be employed by any contractor, classify contractors as to their financial responsibility, competency and ability to perform work and set up a classified list of contractors. The municipality may reject the bid of any person, if the person has not been classified for the kind or amount of work in the bid.

AB39-ASA1,9 Section 9. 66.0901 (6m) of the statutes is repealed.

AB39-ASA1,10 Section 10. 66.0901 (6s) of the statutes is repealed.

AB39-ASA1,11 Section 11. 66.0903 (1) (a), (am), (b), (cm), (dr), (em), (hm) and (im) of the statutes are created to read:

AB39-ASA1,4,15 66.0903 (1) (a) “Area” means the county in which a proposed project of public works that is subject to this section is located or, if the department determines that there is insufficient wage data in that county, “area” means those counties that are contiguous to that county or, if the department determines that there is insufficient wage data in those counties, “area” means those counties that are contiguous to those counties or, if the department determines that there is insufficient wage data in those counties, “area” means the entire state or, if the department is requested to review a determination under sub. (3) (br), “area” means the city, village, or town in which a proposed project of public works that is subject to this section is located.

AB39-ASA1,4,16 (am) “Bona fide economic benefit” has the meaning given in s. 103.49 (1) (am).

AB39-ASA1,4,17 (b) “Department” means the department of workforce development.

AB39-ASA1,4,18 (cm) “Insufficient wage data” has the meaning given in s. 103.49 (1) (bg).

AB39-ASA1,5,4 (dr) “Minor service or maintenance work” means a project of public works that is limited to minor crack filling, chip or slurry sealing, or other minor pavement patching, not including overlays, that has a projected life span of no longer than 5 years or that is performed for a town and is not funded under s. 86.31, regardless of projected life span; the depositing of gravel on an existing gravel road applied solely to maintain the road; road shoulder maintenance; cleaning of drainage or sewer ditches or structures; or any other limited, minor work on public facilities or equipment that is routinely performed to prevent breakdown or deterioration.

AB39-ASA1,5,6 (em) “Multiple-trade project of public works” has the meaning given in s. 103.49 (1) (br).

AB39-ASA1,5,8 (hm) “Single-trade project of public works” has the meaning given in s. 103.49 (1) (em).

AB39-ASA1,5,10 (im) “Supply and installation contract” has the meaning given in s. 103.49 (1) (fm).

AB39-ASA1,12 Section 12. 66.0903 (1) (c) of the statutes is amended to read:

AB39-ASA1,5,13 66.0903 (1) (c) “Hourly basic rate of pay” has the meaning given in s. 16.856 103.49 (1) (b), 2015 stats.

AB39-ASA1,13 Section 13. 66.0903 (1) (f) of the statutes is amended to read:

AB39-ASA1,5,16 66.0903 (1) (f) “Prevailing hours of labor” has the meaning given in s. 16.856 103.49 (1) (e), 2015 stats. (c).

AB39-ASA1,14 Section 14. 66.0903 (1) (g) of the statutes is repealed and recreated to read:

AB39-ASA1,5,19 66.0903 (1) (g) “Prevailing wage rate” has the meaning given in s. 103.49 (1) (d).

AB39-ASA1,15 Section 15. 66.0903 (1) (j) of the statutes is amended to read:

AB39-ASA1,5,22 66.0903 (1) (j) “Truck driver” includes an owner-operator of a truck has the meaning given in s. 103.49 (1) (g).

AB39-ASA1,16 Section 16. 66.0903 (1m) (b) of the statutes is amended to read:

AB39-ASA1,6,15 66.0903 (1m) (b) The legislature finds that the enactment of ordinances or other enactments by local governmental units requiring laborers, workers, mechanics, and truck drivers employed on projects of public works or on publicly funded private construction projects to be paid the prevailing wage rate and to be paid at least 1.5 times their hourly basic rate of pay for hours worked in excess of the prevailing hours of labor would be logically inconsistent with, would defeat the purpose of, and would go against the repeals spirit of this section and the repeal of s. 66.0904, 2009 stats., and s. 66.0903 (2) to (12), 2013 stats. Therefore, this section shall be construed as an enactment of statewide concern for the purposes of facilitating broader participation with respect to bidding on projects of public works, ensuring that wages accurately reflect market conditions, providing local governments with the flexibility to reduce costs on capital projects, and reducing spending at all levels of government in this state purpose of providing uniform prevailing wage rate and prevailing hours of labor requirements throughout the state.

AB39-ASA1,17 Section 17. 66.0903 (2) to (12) of the statutes are created to read:

AB39-ASA1,6,19 66.0903 (2) Applicability. Subject to sub. (5), this section applies to any project of public works erected, constructed, repaired, remodeled, or demolished for a local governmental unit, including all of the following:

AB39-ASA1,6,20 (a) A highway, street, bridge, building, or other infrastructure project.

AB39-ASA1,7,2 (b) A project erected, constructed, repaired, remodeled, or demolished by one local governmental unit for another local governmental unit under a contract under s. 66.0301 (2), 83.03, 83.035, or 86.31 (2) (b) or under any other statute specifically authorizing cooperation between local governmental units.

AB39-ASA1,7,6 (c) A project in which the completed facility is leased, purchased, lease purchased, or otherwise acquired by, or dedicated to, a local governmental unit in lieu of the local governmental unit contracting for the erection, construction, repair, remodeling, or demolition of the facility.

AB39-ASA1,7,10 (d) 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, including under s. 236.13 (2), for ownership or maintenance by the local governmental unit.

AB39-ASA1,7,22 (3) Prevailing wage rates and hours of labor. (am) A local governmental unit, before making a contract by direct negotiation or soliciting bids on a contract for the erection, construction, remodeling, repairing, or demolition of any project of public works, shall apply to the department to determine the prevailing wage rate for each trade or occupation required in the work contemplated. The department shall conduct investigations and hold public hearings as necessary to define the trades or occupations that are commonly employed on projects of public works that are subject to this section and to inform itself of the prevailing wage rates in all areas of the state for those trades or occupations, in order to determine the prevailing wage rate for each trade or occupation. The department shall issue its determination within 30 days after receiving the request and shall file the determination with the requesting local governmental unit.

AB39-ASA1,8,6 (ar) The department shall, by January 1 of each year, compile the prevailing wage rates for each trade or occupation in each area. The compilation shall, in addition to the current prevailing wage rates, include future prevailing wage rates when those prevailing wage rates can be determined for any trade or occupation in any area and shall specify the effective date of those future prevailing wage rates. If a project of public works extends into more than one area, the department shall determine only one standard of prevailing wage rates for the entire project.

AB39-ASA1,8,14 (av) In determining prevailing wage rates under par. (am) or (ar), the department may not use data from projects that are subject to this section, s. 103.49 or 103.50, or 40 USC 3142 unless the department determines that there is insufficient wage data in the area to determine those prevailing wage rates, in which case the department may use data from projects that are subject to this section, s. 103.49 or 103.50, or 40 USC 3142. In determining prevailing wage rates under par. (am) or (ar), the department may not use data from any construction work that is performed by a local governmental unit or a state agency.

AB39-ASA1,8,23 (bm) Any person may request a recalculation of any portion of an initial determination within 30 days after the initial determination date if the person submits evidence with the request showing that the prevailing wage rate for any given trade or occupation included in the initial determination does not represent the prevailing wage rate for that trade or occupation in the area. The evidence shall include wage rate information reflecting work performed by individuals working in the contested trade or occupation in the area during the current survey period. The department shall affirm or modify the initial determination within 15 days after the date on which the department receives the request for recalculation.

AB39-ASA1,9,14 (br) In addition to the recalculation under par. (bm), the local governmental unit that requested the determination under this subsection may request a review of any portion of a determination within 30 days after the date of issuance of the determination if the local governmental unit submits evidence with the request showing that the prevailing wage rate for any given trade or occupation included in the determination does not represent the prevailing wage rate for that trade or occupation in the city, village, or town in which the proposed project of public works is located. That evidence shall include wage rate information for the contested trade or occupation on at least 3 similar projects located in the city, village, or town where the proposed project of public works is located and on which some work has been performed during the current survey period and which were considered by the department in issuing its most recent compilation under par. (ar). The department shall affirm or modify the determination within 15 days after the date on which the department receives the request for review.

AB39-ASA1,9,23 (dm) A local governmental unit that is subject to this section shall include a reference to the prevailing wage rates determined by the department and to the prevailing hours of labor in the notice published for the purpose of securing bids for the project of public works. Except as otherwise provided in this paragraph, if any contract or subcontract for a project of public works is entered into, the prevailing wage rates determined by the department and the prevailing hours of labor shall be physically incorporated into and made a part of the contract or subcontract. For a minor subcontract, as determined by the department, the department shall prescribe by rule the method of notifying the minor subcontractor of the prevailing wage rates and prevailing hours of labor applicable to the minor subcontract. The prevailing wage rates and prevailing hours of labor applicable to a contract or subcontract may not be changed during the time that the contract or subcontract is in force.

AB39-ASA1,10,6 (e) No contractor, subcontractor, or contractor’s or subcontractor’s agent that is subject to this section may do any of the following:

AB39-ASA1,10,9 1. Pay an individual performing the work described in sub. (4) less than the prevailing wage rate in the same or most similar trade or occupation determined under this subsection.

AB39-ASA1,10,14 2. Allow an individual performing the work described in sub. (4) to work a greater number of hours per day or per week than the prevailing hours of labor, unless the contractor, subcontractor, or contractor’s or subcontractor’s agent pays the individual for all hours worked in excess of the prevailing hours of labor at a rate of at least 1.5 times the individual’s hourly basic rate of pay.

AB39-ASA1,10,20 (4) Covered employees. (a) Subject to par. (b), any person subject to this section shall pay all of the following employees the prevailing wage rate determined under sub. (3) and may not allow such employees to work a greater number of hours per day or per week than the prevailing hours of labor, unless the person pays the employee for all hours worked in excess of the prevailing hours of labor at a rate of at least 1.5 times the employee’s hourly basic rate of pay:

AB39-ASA1,10,22 1. All laborers, workers, mechanics, and truck drivers employed on the site of a project of public works that is subject to this section.