The proposed bill aims to enhance accountability for the payment of workers' wages and benefits in the construction industry in Washington State. It identifies issues related to the underground economy, such as the misclassification of employees, which has resulted in significant financial losses for workers. The bill introduces mechanisms that allow unrepresented employees of direct contractors and subcontractors to seek payment for unpaid wages and benefits from both direct contractors and owners. It establishes that owners and direct contractors are jointly and severally liable for any unpaid wages, fringe benefits, and other compensations owed to these employees. Additionally, it mandates that any civil action to recover unpaid wages must commence within three years of the due date and requires written notice to the owner and direct contractor before initiating legal action.
Furthermore, the bill outlines specific definitions related to construction contracts, employees, and subcontractors, and it imposes penalties for violations of wage and hour laws. It also mandates that subcontractors provide certain records to owners or direct contractors upon request, ensuring transparency in wage payments. However, the liability for owners does not extend to construction contracts related to their principal residence or small properties with five or fewer units. The bill emphasizes the protection of workers' rights and prohibits retaliation against employees who assert their rights under this legislation. Overall, the bill seeks to strengthen the legal framework surrounding wage payments in the construction sector, thereby protecting workers from exploitation.