Researcher: JM Page 1 5/6/21
OLR Bill Analysis
HB 6378 (as amended by House “A”)*
AN ACT CODIFYING PREVAILING WAGE CONTRACT RATES.
SUMMARY
This bill revises the method the labor commissioner must use to set
prevailing wage rates on public works projects. The bill establishes one
process for building, heavy, and highway projects and another for
residential projects.
Under the prevailing wage law, contractors on public works
projects must at least pay the prevailing hourly wage rate and benefits,
as determined by law, to all eligible workers on the project. The
requirement applies to new construction projects of $1 million or more
and renovation projects of $100,000 or more.
The bill also makes conforming changes.
*House Amendment “A” requires that the prevailing wage rate be
determined by the collective bargaining agreement of “historical
jurisdiction” rather than the “dominant” agreement, specifically
addresses how residential project rates are determined, and provides
additional requirements on determining benefit contributions.
EFFECTIVE DATE: October 1, 2021
PREVAILING WAGE DETE RMINATIONS
Current law allows the commissioner to set the rates in one of two
ways: (1) on his own, after (a) holding a hearing to determine the
prevailing wage rates on any public work within a specified area and
(b) establishing classifications of skilled, semiskilled, and ordinary
labor, or (2) by adopting and using the applicable prevailing wage rate
determinations made by the federal labor secretary for the federal
prevailing wage law. In practice, the labor commissioner uses the
federally-determined rates for the four types of prevailing wage 2021HB-06378-R010631-BA.DOCX
Researcher: JM Page 2 5/6/21
projects: building, heavy, highway, and residential.
The bill instead establishes one process for building, heavy, and
highway projects and another for residential projects. Residential
projects are those of either single- or multi-family housing or
dormitories of no more than four stories.
Building, Heavy, and Highway Project Rates
The bill requires the commissioner to make the prevailing hourly
wage rate for building, heavy, and highway projects for each trade or
occupation the same as the rate established in the collective bargaining
agreement or understanding between employers or employer
associations and labor organizations in effect for that trade or
occupation for the town where the project is being constructed. It also
specifies the wage rates must conform to the overtime wage law.
For benefits, the bill requires that the commissioner when making
the rate determination consider the amount of payment, contributions,
and member benefits, including health, pension, annuity and
apprenticeship funds, as recognized by the U.S. Department of Labor
and the state labor commissioner and paid or payable on behalf of each
person to any employee welfare fund that is established in a collective
bargaining agreement or understanding between an employer and a
union. Under current law, the benefit rate is the amount of payment or
contributions paid or payable on behalf of each person to any
employee welfare fund (see BACKGROUND).
Under the bill, for each trade or occupation for which more than one
collective bargaining agreement is in effect for the town in which such
project is being constructed, the collective bargaining agreement of
historical jurisdiction must prevail. The bill does not define “historical
jurisdiction.”
Residential Project Rates and Towns with No Bargaining
Agreement
Under the bill, for residential project rates the Labor Commissioner
must adopt and use the appropriate and applicable federally
determined prevailing wage rates. 2021HB-06378-R010631-BA.DOCX
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The bill also requires the labor commissioner to use this
methodology for each trade or occupation for which there is no
collective bargaining agreement in effect for the town in which the
building, heavy, or highway works project is being constructed.
BACKGROUND
Employee Welfare Fund
Under the prevailing wage law, an “employee welfare fund” means
any trust fund established by one or more employers and one or more
labor organizations or other third parties to provide, whether through
the purchase of insurance, annuity contracts, or otherwise, benefits
under an employee welfare plan. The welfare plan provides benefits or
services established or maintained for persons performing the work of
any mechanics, laborers, or workers or their families or dependents, or
for both. Benefits include medical, surgical, or hospital care benefits;
sickness, accident, disability, or death benefits; unemployment
benefits; or retirement benefits (CGS § 31-53(i)).
COMMITTEE ACTION
Labor and Public Employees Committee
Joint Favorable
Yea 10 Nay 3 (02/18/2021)