Meghan Douris | Seyfarth Shaw
The Washington legislature is considering Bill 2191, which introduces new worker protection measures aimed at improving labor standards in the construction industry. While the intent behind these protections is commendable, the bill raises significant concerns for general contractors—particularly around compliance, cost implications, and the ambiguity of exemptions tied to “qualifying CBAs” (Collective Bargaining Agreements).
The primary goal of Bill 2191 is to:
- Enhance worker protections and ensure fair treatment.
- Promote safer working conditions and equitable pay practices.
- Encourage collaboration between employers and labor organizations.
These objectives reflect a broader trend toward strengthening labor rights in construction, which could improve workforce stability, including improved workforce retention, and more reliable subcontractor labor forces. However, the bill as written also has significant risks and challenges for Washington general contractors. The bill introduces new obligations that may require significant administrative oversight. Failure to comply could lead to penalties, litigation, or reputational harm with owners, subcontractors and labor. Increased labor standards often translate into higher project costs—both direct (wages, benefits) and indirect (compliance systems, audits). Significantly, the bill as written also creates ambiguity around the “qualifying CBA” exemption, failing to define or elaborate on what makes a collective bargaining agreement a “qualifying” one. Questions remain: What constitutes a “qualifying” agreement? Who determines compliance? Contractors relying on this exemption risk misinterpretation, which could lead to non-compliance.
If the bill passes, contractors will need to:
- Review Current CBAs: Ensure agreements meet any forthcoming statutory definitions.
- Budget for Compliance: Factor potential cost increases into bids and project planning.
Bill 2191 reflects a positive intent to protect workers, but its implementation could create significant challenges for general contractors. Proactive planning is essential to mitigate risk and maintain competitiveness in Washington’s evolving construction landscape.
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