LRBs0105/1
MED&GMM:cjs&kjf
2015 - 2016 LEGISLATURE
ASSEMBLY SUBSTITUTE AMENDMENT 1,
TO ASSEMBLY BILL 32
July 6, 2015 - Offered by Representative Hutton.
AB32-ASA1,2,9 1An Act to repeal 66.0903 (1) (a), (am), (b), (cm), (dr), (em), (hm) and (im), 66.0903
2(1m) (a) 1. to 3., 66.0903 (2) to (12), 103.49 (title), 103.49 (1) (a), (bg) and (d),
3103.49 (3), (4r) and (5), 103.49 (6m) (f), 103.49 (7), 103.50 (title) and (1), 103.50
4(3) to (5), 103.50 (7) (f), 104.001 (3) (a), 227.01 (13) (t), 229.682 (2) and 229.8275;
5to renumber 103.49 (1) (intro.), (am), (b), (bj), (br), (c), (em), (f), (fm) and (g),
6(1m) and (3g), 103.49 (6m) (title) and 103.49 (6m) (b) to (e); to renumber and
7amend
66.0903 (1m) (a) (intro.), 103.49 (2), 103.49 (2m), 103.49 (6m) (ag),
8103.49 (6m) (am), 103.50 (2), 103.50 (2g), 103.50 (2m), 103.50 (6), 103.50 (7)
9(title) and (a) to (e) and 103.50 (8); to consolidate, renumber and amend
10104.001 (3) (intro.) and (b); to amend 19.36 (12), 66.0129 (5), 66.0903 (1) (c),
1166.0903 (1) (f), 66.0903 (1) (j), 66.0903 (1m) (b), 84.41 (3), 103.005 (12) (a),
12103.503 (1) (a), 103.503 (1) (c), 103.503 (1) (e), 103.503 (1) (g), 103.503 (2),
13103.503 (3) (a) 2., 106.04 (1) (d), 109.09 (1), 111.322 (2m) (a), 111.322 (2m) (b),

1111.322 (2m) (c), 946.15 (1), 946.15 (2), 946.15 (3), 946.15 (4) and 978.05 (6) (a);
2to repeal and recreate 66.0903 (title) and 66.0903 (1) (g); and to create
316.856 and 84.062 of the statutes; relating to: elimination of the requirement
4that laborers, workers, mechanics, and truck drivers employed on the site of a
5local project of public works be paid the prevailing wage, enforcement and
6administration of the prevailing wage laws, calculation of the prevailing wage
7rate, persons covered under the prevailing wage law, remedies available for a
8violation of the prevailing wage law, providing an exemption from emergency
9rule procedures, and granting rule-making authority.
Analysis by the Legislative Reference Bureau
This substitute amendment: 1) repeals the prevailing wage law that applies to
local projects of public works; 2) requires the use of federally determined prevailing
wage rates on state projects of public works, instead of rates determined by the
Department of Workforce Development (DWD); 3) transfers much of DWD's existing
role in enforcing and administering the prevailing wage law to the Department of
Administration (DOA); 4) eliminates various statutory provisions with respect to the
enforcement and administration of the prevailing wage law for state projects other
than state highway projects and provides DOA with rule-making authority to
enforce and administer the prevailing wage law for those state projects; 5) excludes
certain persons from coverage under the prevailing wage law; 6) restricts the
remedies that are available for a violation of the prevailing wage law; and 7) makes
certain other changes regarding enforcement of the prevailing wage law.
Applicability of the prevailing wage law
Under the current prevailing wage law, laborers, workers, mechanics, and
truck drivers employed on the site of certain state and local projects of public works
(generally single-trade projects whose estimated cost of completion is $48,000 or
more and multiple-trade projects whose estimated cost of completion is $100,000 or
more) 1) must be paid at the rate paid for a majority of the hours worked in the
person's trade or occupation in the area in which the project is located, as determined
by DWD; and 2) may not be required or permitted to work a greater number of hours
per day and per week than the prevailing hours of labor, which is no more than 10
hours per day and 40 hours per week, unless they are paid 1.5 times their basic rate
of pay (commonly referred to as overtime pay) for all hours worked in excess of the
prevailing hours of labor. Also under current law, no local government may enact or
administer a prevailing wage law ordinance or any similar ordinance.

This substitute amendment eliminates the prevailing wage law with respect to
projects of public works undertaken by local governmental units, but retains the
prohibition against local governmental units enacting or administering their own
prevailing wage laws or similar ordinances.
Determination of prevailing wage rate; enforcement and administration of
prevailing wage law
Under current law, the 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 the area in which the project
is located, 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-paid 51
percent of hours worked in a trade or occupation in the area. Current law requires
DWD to conduct investigations and hold public hearings as necessary to define the
trades or occupations that are commonly employed on projects that are subject to the
prevailing wage law and to inform itself as to 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. Current law also contains certain other provisions
regarding the calculation of prevailing wage rates by DWD, including provisions
allowing for persons to request recalculations of the prevailing wage rates.
The substitute amendment repeals all provisions directing DWD to determine
prevailing wage rates and redefines "prevailing wage rate" to instead mean the
applicable prevailing wage rate as determined by the U.S. Department of Labor
under the federal Davis-Bacon Act.
The substitute amendment eliminates DWD's other powers and
responsibilities with respect to enforcing and administering the prevailing wage
laws on state projects of public works, except that the substitute amendment retains
DWD's authority to enforce the prevailing wage law through the wage claim
enforcement law. The substitute amendment also eliminates a requirement that
state agencies post prevailing wage rates and hours of labor on the sites of state
projects other than state highway projects. The substitute amendment instead
requires DOA to promulgate rules to enforce the prevailing wage laws on state
projects other than state highway projects. The substitute amendment retains
enforcement and oversight of the prevailing wage law on state highway projects by
the Department of Transportation (DOT).
Coverage under prevailing wage law
Under current law, a person employed to process, manufacture, pick up, or
deliver materials or products from a commercial establishment that has a fixed place
of business from which the establishment supplies processed or manufactured
materials or products or from a facility that is not dedicated exclusively, or nearly so,
to a project of public works that is subject to the prevailing wage law is not covered
under the prevailing wage law unless: 1) the person is employed to go to the source
of mineral aggregate such as sand, gravel, or stone and deliver that mineral
aggregate to the site of a project of public works that is subject to the prevailing wage
law by depositing the material directly in final place; or 2) the person is employed to

go to the site of a project of public works that is subject to the prevailing wage law,
pick up excavated material or spoil from the site of the project, and transport it away
from the site of the project.
The substitute amendment instead provides that persons who are employed to
transport mineral aggregate to the site of a project or to transport excavated material
or spoil away from the site of a project are not covered under the prevailing wage law.
Remedies for a violation of the prevailing wage law
Under current law, with respect to projects other than state highway projects,
a contractor that fails to pay the prevailing wage rate or overtime pay to an employee
as required under the prevailing wage law is liable to the affected employee for the
amount of unpaid wages and overtime pay, plus liquidated damages in an amount
equal to 100 percent of the unpaid wages and overtime pay.
This substitute amendment eliminates a contractor's liability for those
liquidated damages.
Other changes
In addition, the substitute amendment:
1. Provides that DOA or DOT must conduct an investigation to determine
compliance with the prevailing wage law upon request, but only if the requestor is
a person who is an employee performing work on a prevailing wage project. Current
law requires such an inspection on the request of any person.
2. Requires a person not employed by DOA, DOT, or DWD or by a contracting
state agency who contacts an employee performing work on a project for the purpose
of investigating compliance with the prevailing wage law to provide a written
statement to the employee stating that the person is not affiliated with DOA, DOT,
or DWD or the contracting state agency and disclosing the principal source of funding
for the investigation.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB32-ASA1,1 1Section 1. 16.856 of the statutes is created to read:
AB32-ASA1,4,4 216.856 Prevailing wage. (1) (f) "Prevailing wage rate" means the applicable
3prevailing wage rate for an area, as determined by the U.S. department of labor
4under 40 USC 3142.
AB32-ASA1,5,4 5(5) Disclosure. If a person who is not an employee of the department or the
6contracting state agency or who is not an employee of the department of workforce
7development conducting an investigation under s. 109.09 contacts an employee
8performing the work described in sub. (2m) for the purpose of investigating

1compliance with this section, the person shall provide a written statement to the
2employee stating that the person is not affiliated with the department, the
3contracting state agency, or the department of workforce development and disclosing
4the principal source of funding for the investigation.
AB32-ASA1,5,7 5(7) Rules; enforcement. (a) The department shall promulgate any rules that
6the department determines are necessary to implement and ensure compliance with
7this section.
AB32-ASA1,5,118 (b) If requested by any person performing the work described in sub. (2m), the
9department shall inspect the payroll records of any contractor, subcontractor, or
10agent performing work on a project of public works that is subject to this section to
11ensure compliance with this section.
AB32-ASA1,5,1312 (c) Section 111.322 (2m) applies to discharge and other discriminatory acts
13arising in connection with any proceeding under this section.
AB32-ASA1,2 14Section 2. 19.36 (12) of the statutes is amended to read:
AB32-ASA1,5,2415 19.36 (12) Information relating to certain employees. Unless access is
16specifically authorized or required by statute, an authority shall may not provide
17access to a record prepared or provided by an employer performing work on a project
18to which s. 66.0903, 103.49, or 103.50 16.856 or 84.062 applies, or on which the
19employer is otherwise required to pay prevailing wages, if that record contains the
20name or other personally identifiable information relating to an employee of that
21employer, unless the employee authorizes the authority to provide access to that
22information. In this subsection, "personally identifiable information" does not
23include an employee's work classification, hours of work, or wage or benefit payments
24received for work on such a project.
AB32-ASA1,3 25Section 3. 66.0129 (5) of the statutes is amended to read:
AB32-ASA1,6,5
166.0129 (5) Bids for construction. The nonprofit corporation shall let all
2contracts exceeding $1,000 for the construction, maintenance or repair of hospital
3facilities to the lowest responsible bidder after advertising for bids by the publication
4of a class 2 notice under ch. 985. Sections Section 66.0901 and 66.0903 apply applies
5to bids and contracts under this subsection.
AB32-ASA1,4 6Section 4. 66.0903 (title) of the statutes is repealed and recreated to read:
AB32-ASA1,6,7 766.0903 (title) Prevailing wage.
AB32-ASA1,5 8Section 5. 66.0903 (1) (a), (am), (b), (cm), (dr), (em), (hm) and (im) of the
9statutes are repealed.
AB32-ASA1,6 10Section 6. 66.0903 (1) (c) of the statutes is amended to read:
AB32-ASA1,6,1211 66.0903 (1) (c) "Hourly basic rate of pay" has the meaning given in s. 103.49
1216.856 (1) (b).
AB32-ASA1,7 13Section 7. 66.0903 (1) (f) of the statutes is amended to read:
AB32-ASA1,6,1514 66.0903 (1) (f) "Prevailing hours of labor" has the meaning given in s. 103.49
1516.856 (1) (c) (e).
AB32-ASA1,8 16Section 8. 66.0903 (1) (g) of the statutes is repealed and recreated to read:
AB32-ASA1,6,1817 66.0903 (1) (g) "Prevailing wage rate" includes the meanings given under s.
1866.0903 (1) (g), 2013 stats., and s. 16.856 (1) (f).
AB32-ASA1,9 19Section 9. 66.0903 (1) (j) of the statutes is amended to read:
AB32-ASA1,6,2120 66.0903 (1) (j) "Truck driver" has the meaning given in s. 103.49 16.856 (1) (g)
21(j).
AB32-ASA1,10 22Section 10. 66.0903 (1m) (a) (intro.) of the statutes is renumbered 66.0903 (1)
23(h) and amended to read:
AB32-ASA1,7,624 66.0903 (1) (h) In this subsection, " publicly "Publicly funded private
25construction project" means a construction project in which the developer, investor,

1or owner of the project receives direct financial assistance from a local governmental
2unit for the erection, construction, repair, remodeling, demolition, including any
3alteration, painting, decorating, or grading, of a private facility, including land, a
4building, or other infrastructure. "Publicly funded private construction project" does
5not include a project of public works or a housing project involving the erection,
6construction, repair, remodeling, or demolition of any of the following:
.
AB32-ASA1,11 7Section 11. 66.0903 (1m) (a) 1. to 3. of the statutes are repealed.
AB32-ASA1,12 8Section 12. 66.0903 (1m) (b) of the statutes is amended to read:
AB32-ASA1,7,229 66.0903 (1m) (b) The legislature finds that the enactment of ordinances or
10other enactments by local governmental units requiring laborers, workers,
11mechanics, and truck drivers employed on projects of public works or on publicly
12funded private construction projects to be paid the prevailing wage rate and to be
13paid at least 1.5 times their hourly basic rate of pay for hours worked in excess of the
14prevailing hours of labor would be logically inconsistent with, would defeat the
15purpose of, and would go against the spirit of this section and the repeal repeals of
16s. 66.0904, 2009 stats, and s. 66.0903 (2) to (12), 2013 stats. Therefore, this section
17shall be construed as an enactment of statewide concern for the purpose of providing
18uniform prevailing wage rate and prevailing hours of labor requirements throughout
19the state
purposes of facilitating broader participation with respect to bidding on
20projects of public works, ensuring that wages accurately reflect market conditions,
21providing local governments with the flexibility to reduce costs on capital projects,
22and reducing spending at all levels of government in this state
.
AB32-ASA1,13 23Section 13. 66.0903 (2) to (12) of the statutes are repealed.
AB32-ASA1,14 24Section 14. 84.062 of the statutes is created to read:
AB32-ASA1,7,25 2584.062 Prevailing wage. (1) Definitions. In this section:
AB32-ASA1,8,1
1(a) "Hourly basic rate of pay" has the meaning given in s. 16.856 (1) (b).
AB32-ASA1,8,22 (b) "Prevailing hours of labor" has the meaning given in s. 16.856 (1) (e).
AB32-ASA1,8,33 (c) "Prevailing wage rate" has the meaning given in s. 16.856 (1) (f).
AB32-ASA1,8,44 (d) "Truck driver" has the meaning given in s. 16.856 (1) (j).
AB32-ASA1,8,10 5(5) Disclosure. If a person who is not an employee of the department or the
6contracting state agency contacts an employee performing the work described in sub.
7(2m) for the purpose of investigating compliance with this section, the person shall
8provide a written statement to the employee stating that the person is not affiliated
9with the department or the contracting state agency and disclosing the principal
10source of funding for the investigation.
AB32-ASA1,15 11Section 15. 84.41 (3) of the statutes is amended to read:
AB32-ASA1,8,1612 84.41 (3) Employment regulations. Employment regulations set forth in s.
13103.50 84.062 pertaining to wages and hours shall apply to all projects constructed
14under s. 84.40 in the same manner as such laws apply to projects on other state
15highways. Where applicable, the federal wages and hours law known as the
16Davis-Bacon act shall apply.
AB32-ASA1,16 17Section 16. 103.005 (12) (a) of the statutes is amended to read:
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