Monday, August 4, 2014

New Law Exempts Some Contractors From Paying for an Affidavit of Wages Paid Form

The Washington State Legislature approved a new law that waives the fee for filing an Affidavit of Wages Paid for contractors on public works projects who are exempt from the requirement to pay prevailing wages. 

Who is exempt from prevailing wages?  According to WAC 296-127-026 the prevailing wage requirements of chapter 39.12 RCW do not apply to certain individuals:
  1. Sole owners and their spouses
  2. Any partner who owns at least 30% of a partnership
  3. The president, vice-president, and treasurer of a corporation if each one owns at least 30% of the corporation
If one of the above-mentioned entities has employees, those employees must still be paid the applicable prevailing wages.

Filing Intents and Affidavits:  Even though some individuals, as noted above, are exempt from the prevailing wage requirements, the contractor must still file Statement of Intent to Pay Prevailing Wages and Affidavit of Wages Paid forms with the Department of Labor and Industries for approval.  Public agencies must have a copy of the approved Intent for the contractor and all subcontractors prior to making payment to the contractor, and must have the approved Affidavit from the contractor and all subcontractors prior to release of retainage. 

New law makes some Affidavits free:  Under the provisions of Substitute House Bill 1254 that was approved during the 2014 legislative session, and is now included in RCW 39.12.070, individuals who are exempt from paying themselves prevailing wages (see above) must still file the Intent and Affidavit, and pay the $40 for each Intent, but the $40 fee for the Affidavit will not be charged by Labor and Industries.  The new law became effective on June 12, 2014.

More information:  Click here to read a Question and Answer page developed by the Department of Labor and Industries.
Mike Purdy's Public Contracting Blog
© 2014 by Michael E. Purdy Associates, LLC

No comments: