Assoc. Gen. Contractors of Wash. v. State

544 P.3d 486, 2 Wash. 3d 846
CourtWashington Supreme Court
DecidedMarch 14, 2024
Docket101,997-1
StatusPublished
Cited by7 cases

This text of 544 P.3d 486 (Assoc. Gen. Contractors of Wash. v. State) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Assoc. Gen. Contractors of Wash. v. State, 544 P.3d 486, 2 Wash. 3d 846 (Wash. 2024).

Opinion

FILE THIS OPINION WAS FILED FOR RECORD AT 8 A.M. ON IN CLERK’S OFFICE MARCH 14, 2024 SUPREME COURT, STATE OF WASHINGTON MARCH 14, 2024 ERIN L. LENNON SUPREME COURT CLERK

IN THE SUPREME COURT OF THE STATE OF WASHINGTON

ASSOCIATED GENERAL CONTRACTORS No. 101997-1 OF WASHINGTON, a Washington Nonprofit Corporation; ASSOCIATED BUILDERS AND CONTRACTORS OF WESTERN EN BANC WASHINGTON, INC., a Washington Nonprofit Corporation; INLAND PACIFIC Filed :______________ March 14, 2024 CHAPTERS OF ASSOCIATE BUILDERS AND CONTRACTORS, INC., a Washington Nonprofit Corporation; and INLAND NORTHWEST AGC, a Washington Nonprofit Corporation, Respondents, v. STATE OF WASHINGTON; JAY INSLEE, Governor; JOEL SACKS, Director of Washington State Department of Labor and Industries; and JIM CHRISTENSEN, Washington State Department of Labor and Industries Program Manager and Industrial Statistician, Prevailing Wage Program; in their official capacities, Petitioners.

GORDON MCCLOUD, J.— When the State of Washington builds a bridge,

a road, or any other public project, it must pay the workers a fair wage—what the

legislature has called the “prevailing rate of wage.” RCW 39.12.020. Before 2018, Associated Gen. Contractors of Wash. v. State, No. 101997-1

the legislature directed the State to determine the prevailing rate of wage by using

wage and hour surveys dependent on voluntary compliance by employers and

unions. WAC 296-127-019; Clerk’s Papers (CP) at 2559. The “data collected”

from those surveys could be used “only in the county for which the work was

performed.” RCW 39.12.026(1).

In 2018, the legislature changed the method for determining the prevailing

rate of wage on most projects. It directed the State to determine that rate “by

adopting the hourly wage, usual benefits, and overtime paid for the geographic

jurisdiction established in collective bargaining agreements [CBAs] for those

trades and occupations that have [CBAs].” RCW 39.12.015(3)(a).

In Associated General Contractors, the Court of Appeals declared this 2018

statute unconstitutional on the ground that it conflicted with the single-county

geographic limitation in the older statutory subsection, RCW 39.12.026(1).1

Specifically, the Court of Appeals held that RCW 39.12.026(1) provides that “data

collected” by the State to determine prevailing wage rates may be used “only in the

county for which the work was performed,” the new CBA-adoption statute lacks

that geographic limitation, and the RCW 39.12.026(1) single-county limit conflicts

1 Associated Gen. Contractors of Wash. v. State, No. 54465-2-II (Wash. Ct. App. Apr. 18, 2023) (unpublished), https://www.courts.wa.gov/opinions/pdf/D2%2054465-2- II%20Unpublished%20Opinion.pdf (AGC III).

2 Associated Gen. Contractors of Wash. v. State, No. 101997-1

with RCW 39.12.015(3)(a)’s seeming permission to adopt wage rates from CBAs

that cover more than one county. The Court of Appeals concluded that this was a

fatal conflict—that it violated article II, section 37 of the Washington Constitution.

We disagree. The older statutory subsection, RCW 39.12.026(1), was

enacted at the time that the older wage-survey method was in force and, when

RCW 39.12.026(1) is read in context of the full statute and chapter in which it

appears, that statutory subsection’s single-county use limitation applies only to the

wage-survey “data collection” method. It does not apply to the newer CBA-

adoption method at all. Thus, the older statute does not conflict with the newer

statute; they just apply to different situations.

We therefore reverse the decision of the Court of Appeals.

FACTS AND PROCEDURAL HISTORY

I. The legislature amends the prevailing wages on public works act

The prevailing wages on public works act (Act) requires employers to pay

no less than the “prevailing rate of wage” to laborers, workers, or mechanics

working on public projects. RCW 39.12.020. The legislature originally defined the

“prevailing rate of wage” as “the rate of hourly wage, usual benefits, and overtime

paid in the locality . . . to the majority of workers, laborers, or mechanics, in the

same trade or occupation.” RCW 39.12.010(1). The “‘locality’ is the largest city in

the county wherein the physical work is being performed.” RCW 39.12.010(2).

3 Associated Gen. Contractors of Wash. v. State, No. 101997-1

The legislature placed the job of determining the prevailing wage for each trade

and occupation in the hands of the industrial statistician of the Department of

Labor and Industries (L&I). RCW 39.12.015(1).

Pursuant to that legislative grant of authority, the industrial statistician

promulgated WAC 296-127-019, which lays out a multistep procedure for setting

the prevailing wage by using wage surveys. Before 2018, the industrial statistician

followed this method and set prevailing wage rates in Washington’s 39 counties by

sending wage surveys to employers and unions, asking them to voluntarily report

wage rates in various trades and occupations. WAC 296-127-019; CP at 2559.

Then, the industrial statistician would “systemize” the survey data and “determine

the majority or average rate by statistical estimation.” Associated Gen. Contractors

of Wash. v. State, 200 Wn.2d 396, 401, 518 P.3d 639 (2022) (AGC II) (citing WAC

296-127-019); CP at 2555-59 (Christensen deposition).

In 2003, the legislature codified the wage survey process in RCW 39.12.026

and directed the statistician that “all data collected by [L&I] may be used only in

the county for which the work was performed.” Former RCW 39.12.026(1) (2003).

In 2018, the legislature modified the prevailing wage process by enacting

Substitute Senate Bill (SSB) 5493.2 That law requires the industrial statistician to

2 SSB 5493, 65th Leg., Reg. Sess. (Wash. 2018).

4 Associated Gen. Contractors of Wash. v. State, No. 101997-1

“adopt[]” the wages memorialized in CBAs to set most prevailing wage rates,

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544 P.3d 486, 2 Wash. 3d 846, Counsel Stack Legal Research, https://law.counselstack.com/opinion/assoc-gen-contractors-of-wash-v-state-wash-2024.