MASSACHUSETTS POSTED WAGE RATE LAWS AMENDED TO REQUIRE ANNUAL UPDATING OF POSTED RATES ON ALL PUBLIC WORKS CONSTRUCTION PROJECTS.

The Massachusetts Posted Wage Rate Laws were recently amended to require all public works awarding authorities to obtain from the Commissioner of Labor, each year after the date of the awarding of the public works construction contract, any updates to the posted wage rates for the geographic area in which the public works job is being performed. This requirement was included in a section of the Transportation Bond Bill that was approved by the legislature on August 8, 2008.

The law also requires that the General Contractor on the project to obtain those updated rates from the public works awarding authority. Under the new statute, all contractors on that project must pay the updated rates. The asserted rationale for the legislation was based on the fact that union signatory contractors are required to pay higher wage rates as they are renegotiated with the unions during the course of a public works project, while the statute had not placed any such obligation on non-signatory contractors. Apparently, the union-signatory highway contractors who sponsored the legislation contended that the new law would place contractors on a more level bidding basis on multi-year projects.

Similar legislation had recently been passed over the governor’s veto in Rhode Island, and there are also similar laws in Connecticut and New York State.

The new statutory obligation on both the awarding authority and general contractor is to obtain the updated wage rates on the anniversary date of public works projects awarded after August 8, 2008.  As the law requires general contractors and subcontractors to pay the annually updated wage rates on that project, it would appear to be advisable for general contractors to advise all subcontractors on the project of their responsibility to pay the annually updated posted wage rates.

AGC and other trade groups have met with the Office of the Inspector General to obtain more clarification. Concern over implementation was been expressed by Owners project Managers as to any obligation a municipality may incur for increases not figured into the bid by contractors who may later seek additional compensation.

Those updated wage rates will soon be available on the Commissioner of Labor’s web site:  www.mass.gov/dos.