Oregon and Washington Prevailing Wage — A Contractor’s Complete Compliance Guide
Public works projects in both states come with strict wage requirements. Here’s everything you need to know to stay compliant, protect your payments, and avoid penalties that can end your ability to bid public work.
If you’re doing public works construction in Oregon or Washington — or planning to — prevailing wage compliance is not optional, not negotiable, and not something to figure out after you’ve already started the job. In both states, getting it wrong can mean steep financial penalties, suspension from future public contracts, and in Oregon’s evolving enforcement environment, potential criminal exposure under the same legislative framework that produced SB 426 and HB 4089.
The good news: prevailing wage compliance is entirely manageable once you understand the system. This guide tells you exactly what you need to know in both states — the thresholds, the rates, the paperwork, the deadlines, and what happens when things go wrong.
Part One: Oregon Prevailing Wage
The Legal Foundation
Oregon passed the prevailing wage rate law in 1959, earning it the nickname “Little Davis-Bacon Act” because it modeled itself on federal wage protections. The law operates under Oregon Revised Statutes Chapter 279C.800-279C.870, establishing minimum compensation standards for workers on publicly funded construction projects. The Bureau of Labor and Industries (BOLI) administers and enforces the PWR law, handling rate determinations, contractor education, and violation investigations. Tax Credit Advisor
When Oregon Prevailing Wage Applies
Oregon’s PWR Law generally applies to public works contracts costing more than $50,000, with a $100,000 threshold for residential and public housing work. The $50,000 threshold applies to the total project cost including labor, materials, equipment, and all other expenses — not just the labor component. Cushman & Wakefield
Prevailing wage applies to construction, reconstruction, major renovation, or painting carried on or contracted for by a public agency, privately owned projects where 25% or more of the square footage will be occupied by a public agency, solar energy installations on public property regardless of cost, and demolition work preparing for planned construction. Warranty work on covered projects is also covered. Tax Credit Advisor
Important New Expansion — Effective July 1, 2026
House Bill 2688, signed by Governor Kotek, amends Oregon’s prevailing wage rate law to require contractors to pay prevailing wages on certain off-site bespoke work fabricated for public works projects that previously fell outside the law’s requirements. These changes take effect July 1, 2026. If your company does any off-site fabrication or assembly for Oregon public works projects — custom structural components, specialty millwork, prefabricated elements — review your operations against this expansion carefully. BOLI is actively soliciting feedback on enforcement of HB 2688, and has not yet adopted regulations interpreting the amendments, so watch the BOLI website for guidance as the July 1 effective date approaches. Oregon OSHAOregon OSHA
How Oregon Sets Prevailing Wage Rates
BOLI publishes prevailing wage rate booklets twice a year, usually in January and July, with amendments published twice a year, usually in April and October. This semi-annual update makes Oregon’s rates more current than many states that update only annually. Ogletree
Generally, if the project is subject only to state PWR law, the rates in effect at the time the bid specifications are first advertised by the public agency are those that apply for the duration of the project. This is critical for estimating — the rates are locked in at bid advertisement, not at contract award or construction start. If rates update between bid advertisement and your actual start date, the rates in effect at bid advertisement govern. Ogletree
Rates vary by trade and county — a carpenter rate in Multnomah County is different from a carpenter rate in Josephine County. Always look up the specific rate for the specific trade and county where the work will be performed.
Where to Find the Rates
Oregon prevailing wage rate books are published at oregon.gov/boli. Navigate to the Prevailing Wage section. The current rate book and all amendments are posted there as downloadable PDFs. Always download the most current book and amendments before finalizing your bid labor pricing.
Who Must Be Paid Prevailing Wage
Workers spending more than 20% of their time on manual or physical duties during any workweek must receive prevailing wages. Administrative, executive, professional, supervisory, or clerical duties do not trigger coverage. Tax Credit Advisor
Every subcontractor at every tier on a covered project is subject to prevailing wage requirements — not just the prime contractor. This is not a prime-contractor-only obligation. If you are a general contractor and your electrical sub fails to pay prevailing wage to its workers, you have potential exposure under both the PWR law and SB 426’s wage liability provisions.
Oregon Certified Payroll Requirements
Contractors submit certified payroll to the awarding public agency by the fifth business day of the following month. Oregon’s certified payroll form is the WH-38, which must be submitted to the contracting public agency — not to BOLI — on a monthly basis. Cushman & Wakefield
The WH-38 reports for each worker: name, trade classification, hours worked, wage rate paid, fringe benefits paid, and a certification by the contractor that the information is true and accurate.
Every contractor and subcontractor engaged in work on a public works project must post the applicable prevailing wage rates for that project in an obvious place on the worksite, so workers have ready access to the information. This posting requirement is frequently cited in BOLI enforcement actions — it’s simple to comply with and easy to overlook. Oregon OSHA
Federal Projects: Davis-Bacon
The Davis-Bacon and Related Acts requires all contractors and subcontractors performing work on federal construction contracts or federally assisted contracts in excess of $2,000 to pay their laborers and mechanics not less than the prevailing wage rates and fringe benefits for corresponding classes of laborers and mechanics employed on similar projects in the area. Ogletree
In mixed-funding scenarios, contractors must understand both BOLI and Department of Labor regulations. The cardinal rule: when a project is subject to both state and federal prevailing wage laws, contractors must pay the higher of the two applicable wage rates. Ram Steelco
The Ineligible Contractors List
BOLI maintains a list of contractors who are ineligible to receive public works contracts due to prior violations. Pursuant to ORS 279C.860, contractors on this list are ineligible to receive public works contracts subject to the Prevailing Wage Rate Law. These contractors and subcontractors, as well as any firm, corporation, partnership or association in which the contractor or subcontractor has a financial interest, are ineligible to receive public works contracts until removed from this list. Oregon OSHA
Before hiring a subcontractor on a public works project, check this list at oregon.gov/boli/employers/pages/pwr-ineligible-contractors.aspx. Hiring an ineligible sub is not a defense — it’s an additional violation.
Oregon Penalties for Non-Compliance
BOLI can assess civil penalties, require back payment of wages owed at the prevailing rate, and place violating contractors on the ineligible list — barring them from future Oregon public works contracts. Oregon’s enforcement environment is becoming significantly more aggressive in 2026 in connection with the HB 4012 targeted assessment initiative, which is bringing CCB and BOLI into active coordination on jobsite inspections beginning January 1, 2027.
Part Two: Washington Prevailing Wage
The Legal Foundation
Washington’s prevailing wage law is governed by Chapter 39.12 RCW, which mandates that contractors and subcontractors pay prevailing wages for all public works and maintenance contracts. The Washington State Public Works Act was enacted in 1945 and requires that employees of government contractors be paid standardized wages that reflect local labor agreements for similar work. Construction Dive
Washington’s prevailing wage law is administered by the Washington State Department of Labor & Industries (L&I).
When Washington Prevailing Wage Applies
Here is the most important difference between Oregon and Washington: Washington requires contractors and subcontractors in the construction industry to pay prevailing wages on all public works projects with no minimum dollar contract amount threshold. Construction Dive
There is no $50,000 floor. There is no $100,000 floor. If it’s a public works project in Washington, prevailing wage applies — whether it’s a $5,000 repair job or a $500 million highway project. This catches many contractors off guard, particularly those accustomed to Oregon’s threshold-based system.
How Washington Sets Prevailing Wage Rates
L&I publishes new rates on the first business day of February and August, with rates taking effect 30 days after publication. Rates vary by trade, county, and scope of work. The L&I Industrial Statistician determines the prevailing wage rates based on wage and hour data collected from contractors and labor unions through surveys conducted every three years. ABC Central Texas
Washington prevailing wage rates are published at lni.wa.gov/licensing-permits/public-works-projects/prevailing-wage. Look up rates by trade and county for every project before finalizing your bid.
The Statement of Intent to Pay Prevailing Wages
Washington law requires every contractor and subcontractor on a public works project to file a Statement of Intent to Pay Prevailing Wages. These forms are filed with L&I immediately after contract is awarded. Construction Dive
This step is non-negotiable and must happen before work begins. Every subcontractor at every tier must file their own Statement of Intent — this is not something the prime contractor files on everyone’s behalf. Make subcontractor Statement of Intent filing a condition of your subcontracts and verify it has been filed before allowing any sub to mobilize.
Washington Certified Payroll Requirements
Effective January 1, 2020, contractors are required to file certified payroll reports at least once per month for all prevailing wage jobs, regardless of the project amount. These reports must be submitted through the Washington State Department of Labor & Industries’ online Prevailing Wage Intent and Affidavit (PWIA) system. Nedes Estimating
For federal projects, weekly certified payroll reports must be provided in accordance with federal law. Nedes Estimating
If a paperwork issue arises, your construction payments will cease until your paperwork gets accepted as “true and correct.” This is a critical point — in Washington, L&I has the authority to freeze your project payments if your certified payroll submissions are not in order. This is not a theoretical risk. It happens. Build clean payroll submission into your project management process from day one. National Association of Home Builders
The Affidavit of Wages Paid
RCW 39.12.040 requires every contractor and subcontractor on the project to file an Affidavit of Wages Paid soon after the work has been completed. The Affidavits must be filed with L&I and approved by the Industrial Statistician before being submitted to the agency administering the contract. The agency administering the contract may not release the retainage until the contractor and subcontractors have filed approved Affidavits of Wages Paid. KSK Construction Group
Your retainage does not get released until Affidavits of Wages Paid are filed and approved for every contractor and subcontractor on the project. Chase your subs for their Affidavits proactively — a missing Affidavit from one sub can hold up your retainage on the entire project.
Apprenticeship Utilization Requirements
Under RCW 39.04.320, at least 15 percent of labor hours must be performed by registered apprentices on public works contracts above a project cost threshold. The municipal threshold steps down to $1,500,000 for contracts advertised for bid on or after July 1, 2026, from $2,000,000 currently. ABC Central Texas
This is a significant change effective July 1, 2026 — the apprenticeship utilization requirement now kicks in at a lower dollar threshold for municipal contracts. If you’re bidding municipal public works in Washington above $1.5 million starting July 1, plan your apprenticeship ratios into your workforce from the bid stage.
Apprentices must be in a state-approved program, or a federally approved program if the project receives federal funds, and must work in an appropriate ratio to the journey workers present. If no apprentices are available or the craft is not apprenticeable, contractors must document the exception. ABC Central Texas
Records Retention
Keep certified payroll, classifications, and supporting documents for at least three years after project completion. L&I can audit prior projects — maintain clean, organized payroll records for every public works job you complete. ABC Central Texas
Washington Penalties for Non-Compliance
The civil penalty for the non-payment of prevailing wage is a minimum of $5,000 or an amount equal to 50 percent of the total wage violation found on the contract, whichever is greater. National Association of Home Builders
Washington L&I also uses a strike and debar system that details contractors who have violated prevailing wage, apprenticeship, industrial insurance, or contractor registration law. Even if the error is a mistake, penalties will be assessed. The “I didn’t know” defense does not reduce Washington penalties. Get it right from the start. Building Codes Division
Part Three: Oregon vs. Washington — Side-by-Side Comparison
| Oregon | Washington | |
|---|---|---|
| Governing Law | ORS 279C.800-279C.870 | RCW Chapter 39.12 |
| Administering Agency | BOLI | L&I |
| Minimum Threshold | $50,000 ($100,000 residential) | No minimum — all public works |
| Rate Updates | January & July (amendments April & October) | February & August (effective 30 days after) |
| Rates Locked At | Bid advertisement date | Bid due date or contract award date |
| Certified Payroll Form | WH-38 — filed monthly with agency | PWIA system — filed monthly with L&I |
| Federal Projects | Weekly payroll per Davis-Bacon | Weekly payroll per Davis-Bacon |
| Completion Filing | WH-38 final | Affidavit of Wages Paid |
| Retainage Release | Upon project completion | After Affidavit approval by L&I |
| Apprenticeship Requirement | Not mandated same way | 15% of labor hours (projects above threshold) |
| Penalty | Back wages + fines + debarment | Min. $5,000 or 50% of violation |
| Jobsite Posting | Required — obvious location | Required — obvious location |
| Rate Lookup | oregon.gov/boli | lni.wa.gov |
Part Four: Building Prevailing Wage Into Your Operations
The contractors who get into trouble with prevailing wage compliance are almost never the ones who knowingly cheat — they’re the ones who don’t have a system. Here’s how to build one:
At Bid Stage: Look up the prevailing wage rate book for the state where the project is located. Find the rate for every trade classification you’ll use on the project. Build those rates into your labor cost estimate — don’t assume your standard wage rates will be sufficient. In many rural counties, prevailing wage rates may be lower than your typical rates. In metro areas, they are often significantly higher.
At Contract Award: In Oregon, confirm the prevailing wage rates in effect at bid advertisement — those are your rates for the project duration. In Washington, file the Statement of Intent to Pay Prevailing Wages immediately for every tier contractor. Make this a condition of your subcontracts.
During Construction: Post the applicable prevailing wage rates on the jobsite in an obvious location — this is required in both states. Submit certified payroll on the required schedule. In Oregon, that means the WH-38 to the contracting agency by the 5th business day of each month. In Washington, submit through the PWIA system at least monthly, weekly for federal projects.
Track worker classifications carefully. The contractor or subcontractor must carefully track how much time is spent doing each type of work. Contractors and subcontractors must pay employees the applicable prevailing rate for the hours they spend in each work classification. If the contractor’s records do not clearly show the time spent in each classification, the contractor must pay the worker at the highest classification rate for all hours worked. Ogletree
At Project Completion: In Oregon, file your final WH-38 and confirm all subcontractors have done the same. In Washington, file the Affidavit of Wages Paid through L&I and chase every subcontractor to file theirs before retainage is released. Retain all payroll records for a minimum of three years.
Where to Get Help
Oregon BOLI Prevailing Wage: oregon.gov/boli — rate books, WH-38 forms, ineligible contractor list, and compliance education resources.
Washington L&I Prevailing Wage: lni.wa.gov/licensing-permits/public-works-projects/prevailing-wage — rate lookup, PWIA online system, Statement of Intent forms, and Affidavit of Wages Paid filing.
Federal Davis-Bacon Rates: sam.gov — for projects with federal funding, always check the federal rate and pay the higher of state or federal.
Both BOLI and L&I offer prevailing wage compliance training — take advantage of it. A half-day of training is a far better investment than a $5,000 penalty and the administrative headache of an audit.
NW Construction News provides general industry information only. Prevailing wage requirements are complex and project-specific. Contractors should consult a qualified construction attorney or labor compliance professional for guidance specific to their projects and operations.
