Reminder on New Minimum Wage Rate

As a reminder, effective January 1, 2009, the minimum wage rate in the State of Washington increased from $8.07 per hour to $8.55 per hour.

Where the prevailing wage rate on existing public works contracts is less than the minimum wage rate, contractors must begin paying the minimum wage rate, effective January 1, 2009.

This is an unusual situation as contractors normally know that when they bid a project they can rely on the rates they must pay to be consistent during the life of the contract. But because the minimum wage law is a separate law from the prevailing wage law, contractors must pay the minimum wage rate where it is higher than the prevailing wage rate.

The analogy would be if the contractor estimated in their bid that materials would cost a certain amount, but during the term of the contract, the supplier increased their cost, the contractor would have to pay the higher materials costs. One of the risks a contractor takes in bidding on a project is that their costs may go up from what they bid, either because of a new law or because of increased prices for materials or labor.