8 LONG TITLE
9 General Description:
10 This bill enacts provisions relating to a prevailing wage on state construction projects.
11 Highlighted Provisions:
12 This bill:
13 ▸ requires workers on a state construction project to be paid a prevailing wage;
14 ▸ provides for the determination of a prevailing wage;
15 ▸ authorizes the Labor Commission to investigate alleged violations of the prevailing
16 wage provisions;
17 ▸ creates a criminal penalty and provides for a civil action for a violation of the
18 prevailing wage requirements; and
19 ▸ requires bids issued by a procurement unit and contracts resulting from those bids to
20 comply with the prevailing wage requirements.
21 Money Appropriated in this Bill:
23 Other Special Clauses:
25 Utah Code Sections Affected:
27 63G-6a-602, as last amended by Laws of Utah 2017, Chapter 348
28 63G-6a-603, as last amended by Laws of Utah 2017, Chapter 348
30 34-56-101, Utah Code Annotated 1953
31 34-56-102, Utah Code Annotated 1953
32 34-56-201, Utah Code Annotated 1953
33 34-56-202, Utah Code Annotated 1953
34 34-56-203, Utah Code Annotated 1953
35 34-56-204, Utah Code Annotated 1953
36 34-56-205, Utah Code Annotated 1953
37 34-56-206, Utah Code Annotated 1953
38 34-56-207, Utah Code Annotated 1953
39 34-56-208, Utah Code Annotated 1953
41 Be it enacted by the Legislature of the state of Utah:
42 Section 1. Section 34-56-101 is enacted to read:
45 34-56-101. Title.
46 This chapter is known as "Prevailing Wages on State Construction Projects."
47 Section 2. Section 34-56-102 is enacted to read:
48 34-56-102. Definitions.
49 As used in this chapter:
50 (1) "Commission" means the labor commission created in Section 34A-1-103.
51 (2) "Construction project" means a project:
52 (a) undertaken by or for a state entity;
53 (b) for construction, reconstruction, improvement, enlargement, alteration, or repair of
54 a public improvement; and
55 (c) estimated to cost $100,000 or more.
56 (3) "Labor commissioner" means the commission's chief executive officer appointed
57 under Section 34A-1-201, or the chief executive officer's designee.
58 (4) (a) "Prevailing wage" means the wage that is:
59 (i) determined by the United States Department of Labor; and
60 (ii) generally paid to a worker engaged in similar work.
61 (b) "Prevailing wage" includes benefits that are:
62 (i) determined by the United States Department of Labor; and
63 (ii) customarily provided to or paid on behalf of a worker engaged in similar work.
64 (5) "State entity" means the state or any department, division, agency, board,
65 commission, or other instrumentality of the state.
66 (6) "Worker" means an individual who:
67 (a) is employed by:
68 (i) a state entity; or
69 (ii) a contractor or subcontractor on a construction project for the state entity; and
70 (b) is employed to perform actual construction project work on the site of a
71 construction project.
72 Section 3. Section 34-56-201 is enacted to read:
74 34-56-201. Payment of prevailing wage required -- Exception.
75 (1) (a) Except as provided in Subsection (2), a state entity shall:
76 (i) pay a worker no less than the prevailing wage for work of a similar character in the
77 locality in which the work is performed; and
78 (ii) ensure that a contract for a construction project requires:
79 (A) each worker to be paid the prevailing wage for work of a similar character in the
80 locality in which the work is performed; and
81 (B) each contractor and subcontractor on the construction project to comply with the
82 requirements of this chapter.
83 (b) For purposes of this chapter, an individual who transports material or equipment to
84 a construction project site is considered to be a worker if:
85 (i) the transporting of material or equipment is included in a phase of the construction
86 project; and
87 (ii) the actual work that the individual performs on the construction project site is more
88 than incidental to the individual's duties of transporting material or equipment.
89 (2) (a) Subsection (1)(a) does not apply with respect to an individual who is employed
90 pursuant to and is registered in a training or apprenticeship program approved by the United
91 States Department of Labor Office of Apprenticeship.
92 (b) Notwithstanding Subsection (2)(a), a state entity shall:
93 (i) pay an individual described in Subsection (2)(a) according to the applicable
94 apprenticeship standards and guidelines, but no less than 60% of a journeyperson's wage and
95 benefits; and
96 (ii) ensure that a contract for a construction project requires each individual described
97 in Subsection (2)(a) to be paid according to the applicable apprenticeship standards and
98 guidelines, but no less than 60% of a journeyperson's wage and benefits.
99 Section 4. Section 34-56-202 is enacted to read:
100 34-56-202. Prevailing wage determination.
101 (1) Before awarding a contract for a construction project, a state entity shall:
102 (a) obtain from the United States Department of Labor the prevailing wage for each
103 craft or type of work:
104 (i) needed to perform the contract; and
105 (ii) within the locality in which the construction project will take place; and
106 (b) make a determination of the prevailing wage for each craft or type of work
107 described in Subsection (1)(a) based on the prevailing wage information obtained under
108 Subsection (1)(a).
109 (2) A state entity's determination under Subsection (1) is final for all purposes of the
110 contract for which the determination is made.
111 Section 5. Section 34-56-203 is enacted to read:
112 34-56-203. Commission to determine prevailing wages.
113 Using the most recent United States Department of Labor wage determinations, the
114 commission shall annually determine the prevailing wage within the state for all occupations,
115 crafts, and types of work expected to be required for construction projects.
116 Section 6. Section 34-56-204 is enacted to read:
117 34-56-204. Records.
118 (1) Each contractor and subcontractor on a construction project shall:
119 (a) maintain an accurate record with respect to each worker employed by the contractor
120 or subcontractor for the construction project, including:
121 (i) the worker's name and occupation or classification; and
122 (ii) the actual wages paid to the worker; and
123 (b) make the record available for inspection at all reasonable hours by the commission
124 or the state entity.
125 (2) A record under Subsection (1) is a public record subject to Title 63G, Chapter 2,
126 Government Records Access and Management Act.
127 Section 7. Section 34-56-205 is enacted to read:
128 34-56-205. Commission investigation of alleged violation -- Adjudicative
129 proceeding -- Civil penalty.
130 (1) The commission shall investigate a contractor or subcontractor's alleged violation
131 of a provision of this chapter if the commission:
132 (a) receives a complaint alleging a violation of this chapter; or
133 (b) has reason to believe that a violation of this chapter has occurred.
134 (2) If a commission investigation under Subsection (1) indicates a probable violation of
135 a provision of this chapter, the commission may conduct an adjudicative proceeding under
136 Title 34A, Chapter 1, Part 3, Adjudicative Proceedings, to determine whether a violation
138 (3) The commission may impose a civil penalty on a contractor or subcontractor found
139 in an adjudicative proceeding to have violated a provision of this chapter in the amount of $500
140 for each violation.
141 Section 8. Section 34-56-206 is enacted to read:
142 34-56-206. Criminal penalty.
143 A person found by a court of competent jurisdiction to have willfully violated or failed
144 to comply with a provision of this chapter is guilty of a class B misdemeanor.
145 Section 9. Section 34-56-207 is enacted to read:
146 34-56-207. Civil action.
147 (1) A worker who is paid less than the prevailing wage for work performed on a
148 construction project may bring a civil action to recover the difference between the prevailing
149 wage and what the worker was actually paid.
150 (2) A court shall award attorney fees and costs to a worker who prevails in an action
151 brought under Subsection (1).
152 Section 10. Section 34-56-208 is enacted to read:
153 34-56-208. Limits on applicability of chapter.
154 A requirement of this chapter does not apply:
155 (1) to the extent the requirement conflicts with a federal law, rule, or regulation; or
156 (2) to work performed by an inmate at a correctional facility.
157 Section 11. Section 63G-6a-602 is amended to read:
158 63G-6a-602. Contracts awarded by bidding.
159 (1) The division or a procurement unit with independent procurement authority may
160 award a contract for a procurement item by the bidding process, in accordance with the rules of
161 the applicable rulemaking authority.
162 (2) The bidding standard procurement process is appropriate to use when cost is the
163 major factor in determining the award of a procurement.
164 (3) Before awarding a contract under this part, a procurement unit shall comply with
165 Section 34-56-202.
166 (4) A contract awarded using the bidding process shall:
167 (a) be in compliance with the requirements of Title 34, Chapter 56, Prevailing Wages
168 on State Construction Projects; and
169 (b) require each contractor and subcontractor under the contract to comply with the
170 requirements of Title 34, Chapter 56, Prevailing Wages on State Construction Projects.
171 Section 12. Section 63G-6a-603 is amended to read:
172 63G-6a-603. Invitation for bids -- Requirements -- Publication.
173 (1) The bidding standard procurement process begins when the issuing procurement
174 unit issues an invitation for bids.
175 (2) An invitation for bids shall:
176 (a) state the period of time during which bids will be accepted;
177 (b) describe the manner in which a bid shall be submitted;
178 (c) state the place where a bid shall be submitted; and
179 (d) include, or incorporate by reference:
180 (i) to the extent practicable, a full description of the procurement items sought and the
181 full scope of work ;
182 (ii) the objective criteria that will be used to evaluate the bids; and
183 (iii) the required contractual terms and conditions[
184 comply with Title 34, Chapter 56, Prevailing Wages on State Construction Projects; and
185 (e) specify the prevailing wage, as defined in Section 34-56-102, in the locality where
186 the construction project will take place for each craft and type of work needed to execute the
188 (3) An issuing procurement unit shall publish an invitation for bids in accordance with
189 the requirements of Section 63G-6a-112.