AB50,167217Section 1672. 103.50 of the statutes is created to read: AB50,892,1818103.50 Highway contracts. (1) Definitions. In this section: AB50,893,219(a) “Area” means the county in which a proposed project that is subject to this 20section is located or, if the department determines that there is insufficient wage 21data in that county, “area” means those counties that are contiguous to that county 22or, if the department determines that there is insufficient wage data in those 23counties, “area” means those counties that are contiguous to those counties or, if
1the department determines that there is insufficient wage data in those counties, 2“area” means the entire state. AB50,893,33(b) “Hourly basic rate of pay” has the meaning given in s. 103.49 (1) (b). AB50,893,44(bg) “Insufficient wage data” has the meaning given in s. 103.49 (1) (bg). AB50,893,55(c) “Prevailing hours of labor” has the meaning given in s. 103.49 (1) (c). AB50,893,106(d) 1. Except as provided in subd. 2., “prevailing wage rate” for any trade or 7occupation in any area means the hourly basic rate of pay, plus the hourly 8contribution for health insurance benefits, vacation benefits, pension benefits, and 9any other bona fide economic benefit, paid directly or indirectly, for a majority of the 10hours worked in the trade or occupation in the area. AB50,893,18112. If there is no rate at which a majority of the hours worked in the trade or 12occupation in the area is paid, “prevailing wage rate” means the average hourly 13basic rate of pay, weighted by the number of hours worked, plus the average hourly 14contribution, weighted by the number of hours worked, for health insurance 15benefits, vacation benefits, pension benefits, and any other bona fide economic 16benefit, paid directly or indirectly for all hours worked at the hourly basic rate of 17pay of the highest-paid 51 percent of hours worked in that trade or occupation in 18that area. AB50,893,1919(e) “Truck driver” has the meaning given in s. 103.49 (1) (g). AB50,893,2320(2) Prevailing wage rates and hours of labor. No contractor, 21subcontractor, agent, or other person performing any work on a project under a 22contract based on bids as provided in s. 84.06 (2) to which the state is a party for the 23construction or improvement of any highway may do any of the following: AB50,894,3
1(a) Pay an individual performing the work described in sub. (2m) less than the 2prevailing wage rate in the area in which the work is to be done determined under 3sub. (3). AB50,894,84(b) Allow an individual performing the work described in sub. (2m) to work a 5greater number of hours per day or per week than the prevailing hours of labor, 6unless the contractor, subcontractor, or contractor’s or subcontractor’s agent pays 7the individual for all hours worked in excess of the prevailing hours of labor at a 8rate of at least 1.5 times the individual’s hourly basic rate of pay. AB50,894,139(2g) Nonapplicability. This section does not apply to a single-trade project 10of public works, as defined in s. 103.49 (1) (em), for which the estimated project cost 11of completion is less than $48,000 or a multiple-trade project of public works, as 12defined in s. 103.49 (1) (br), for which the estimated project cost of completion is less 13than $100,000. AB50,894,1914(2m) Covered employees. (a) Subject to par. (b), any person subject to this 15section shall pay all of the following employees the prevailing wage rate determined 16under sub. (3) and may not allow such employees to work a greater number of hours 17per day or per week than the prevailing hours of labor, unless the person pays for all 18hours worked in excess of the prevailing hours of labor at a rate of at least 1.5 times 19the employees’ hourly basic rate of pay: AB50,894,21201. All laborers, workers, mechanics, and truck drivers employed on the site of 21a project that is subject to this section. AB50,895,3222. All laborers, workers, mechanics, and truck drivers employed in the 23manufacturing or furnishing of materials, articles, supplies, or equipment on the
1site of a project that is subject to this section or from a facility dedicated exclusively, 2or nearly so, to a project that is subject to this section by a contractor, subcontractor, 3agent, or other person performing any work on the site of the project. AB50,895,114(b) A laborer, worker, mechanic, or truck driver who is employed to process, 5manufacture, pick up, or deliver materials or products from a commercial 6establishment that has a fixed place of business from which the establishment 7supplies processed or manufactured materials or products or from a facility that is 8not dedicated exclusively, or nearly so, to a project that is subject to this section is 9not entitled to receive the prevailing wage rate determined under sub. (3) or to 10receive at least 1.5 times his or her hourly basic rate of pay for all hours worked in 11excess of the prevailing hours of labor unless any of the following applies: AB50,895,16121. The laborer, worker, mechanic, or truck driver is employed to go to the 13source of mineral aggregate such as sand, gravel, or stone and deliver that mineral 14aggregate to the site of a project that is subject to this section by depositing the 15material directly in final place, from the transporting vehicle or through spreaders 16from the transporting vehicle. AB50,895,20172. The laborer, worker, mechanic, or truck driver is employed to go to the site 18of a project that is subject to this section, pick up excavated material or spoil from 19the site of the project, and transport that excavated material or spoil away from the 20site of the project and return to the site of the project. AB50,895,2321(c) A contractor, subcontractor, agent, or other person performing work on a 22project subject to this section shall pay a truck driver who is an owner-operator of a 23truck separately for his or her work and for the use of his or her truck. AB50,896,6
1(3) Investigations; determinations. The department shall conduct 2investigations and hold public hearings necessary to define the trades or 3occupations that are commonly employed in the highway construction industry and 4to inform the department of the prevailing wage rates in all areas of the state for 5those trades or occupations, in order to ascertain and determine the prevailing 6wage rates accordingly. AB50,896,187(4) Certification of prevailing wage rates. The department of workforce 8development shall, by May 1 of each year, certify to the department of 9transportation the prevailing wage rates in each area for all trades or occupations 10commonly employed in the highway construction industry. The certification shall, 11in addition to the current prevailing wage rates, include future prevailing wage 12rates when such prevailing wage rates can be determined for any such trade or 13occupation in any area and shall specify the effective date of those future prevailing 14wage rates. The certification shall also include wage rates for work performed on 15Sundays or the holidays specified in s. 103.49 (1) (c) and shift differentials based on 16the time of day or night when work is performed. If a construction project extends 17into more than one area, the department shall determine only one standard of 18prevailing wage rates for the entire project. AB50,897,219(4m) Wage rate data. In determining prevailing wage rates for projects that 20are subject to this section, the department shall use data from projects that are 21subject to this section, s. 66.0903 or 103.49, or 40 USC 3142. In determining 22prevailing wage rates for those projects, the department may not use data from any
1construction work that is performed by a state agency or a local governmental unit, 2as defined in s. 66.0903 (1) (d). AB50,897,63(5) Appeals to governor. If the department of transportation considers any 4determination of the department of workforce development of the prevailing wage 5rates in an area to be incorrect, it may appeal to the governor, whose determination 6is final. AB50,897,227(6) Contents of contracts. The department of transportation shall include 8a reference to the prevailing wage rates determined under sub. (3) and the 9prevailing hours of labor in the notice published for the purpose of securing bids for 10a project. Except as otherwise provided in this subsection, if any contract or 11subcontract for a project that is subject to this section is entered into, the prevailing 12wage rates determined under sub. (3) and the prevailing hours of labor shall be 13physically incorporated into and made a part of the contract or subcontract. For a 14minor subcontract, as determined by the department of workforce development, 15that department shall prescribe by rule the method of notifying the minor 16subcontractor of the prevailing wage rates and prevailing hours of labor applicable 17to the minor subcontract. The prevailing wage rates and prevailing hours of labor 18applicable to a contract or subcontract may not be changed during the time that the 19contract or subcontract is in force. The department of transportation shall post the 20prevailing wage rates determined by the department, the prevailing hours of labor, 21and the provisions of subs. (2) and (7) in at least one conspicuous place that is easily 22accessible to the employees on the site of the project. AB50,898,323(7) Penalties. (a) Except as provided in pars. (b), (d), and (f), any contractor,
1subcontractor, or contractor’s or subcontractor’s agent who violates this section 2may be fined not more than $200 or imprisoned for not more than 6 months or both. 3Each day that a violation continues is a separate offense. AB50,898,114(b) Whoever induces any individual who seeks to be or is employed on any 5project that is subject to this section to give up, waive, or return any part of the 6wages to which the individual is entitled under the contract governing the project, 7or who reduces the hourly basic rate of pay normally paid to an individual for work 8on a project that is not subject to this section during a week in which the individual 9works both on a project that is subject to this section and on a project that is not 10subject to this section, by threat not to employ, by threat of dismissal from 11employment, or by any other means is guilty of an offense under s. 946.15 (1). AB50,898,2012(c) Any individual employed on a project that is subject to this section who 13knowingly allows a contractor, subcontractor, or contractor’s or subcontractor’s 14agent to pay him or her less than the prevailing wage rate set forth in the contract 15governing the project, who gives up, waives, or returns any part of the compensation 16to which he or she is entitled under the contract, or who gives up, waives, or returns 17any part of the compensation to which he or she is normally entitled for work on a 18project that is not subject to this section during a week in which the individual 19works both on a project that is subject to this section and on a project that is not 20subject to this section, is guilty of an offense under s. 946.15 (2). AB50,899,321(d) Whoever induces any individual who seeks to be or is employed on any 22project that is subject to this section to allow any part of the wages to which the 23individual is entitled under the contract governing the project to be deducted from
1the individual’s pay is guilty of an offense under s. 946.15 (3), unless the deduction 2would be allowed under 29 CFR 3.5 or 3.6 from an individual who is working on a 3project that is subject to 40 USC 3142.