12-4-401. Short title.

This part shall be known as the "Prevailing Wage Act of 1975." 

[Acts 1975, ch. 368, § 1; T.C.A., § 12-435.]

12-4-402. Definitions.

As used in this part, unless the context otherwise requires: 

(1) "Building contractor" means any contractor engaged in a "state construction project," as herein defined, other than highway contractors; 

(2) "Commission" means the prevailing wage commission; 

(3) "Contractor" means any contractor, subcontractor, person, firm or corporation in the business of erecting, remodeling, altering, repairing, demolishing, or making any additions to any building or buildings, or any construction project for the purpose of building, rebuilding, locating or relocating or repairing any streets, highways or bridges; 

(4) "Highway contractor" means any contractor engaged in a state construction project for the purpose of building, rebuilding, locating, or relocating or repairing any streets, highways or bridges; 

(5) "Prevailing wage" means the rate of pay as determined according to the provisions of this part; 

(6) "State construction project" means any construction project in an amount in excess of fifty thousand dollars ($50,000) for the purpose of the erecting, remodeling, altering, repairing, demolishing, or making any additions to any building or buildings, or any other type of building and construction work wherein any state funds may be appropriated or expended for such building or construction work; or, irrespective of contract amount, any construction project for the purpose of building, rebuilding, locating, or relocating or repairing any streets, highways or bridges; and 

(7) "State contract" means any contractual agreement, written or oral, entered into by any person, firm or corporation with the state of Tennessee for the performance of work on a state construction project. 

[Acts 1975, ch. 368, § 1; T.C.A., § 12-436.]

12-4-403. Establishment and payment of prevailing wage.

(a)  It is hereby declared to be the policy of this state that the prevailing wage rate be determined by defined standards and that such rate be paid workers on all state construction projects. 

(b)  Any contractor entering into a state contract for the performance of work on state construction projects shall pay not less than the prevailing wage rate for all types and classifications of such work as determined by the provisions of this part. 

[Acts 1975, ch. 368, § 1; T.C.A., § 12-437.]

12-4-404. Prevailing wage commission.

(a)  There shall be a prevailing wage commission composed of five (5) members, including the commissioner of labor and workforce development, who shall serve as chair, the state architect, and the commissioner of transportation or the commissioner's designee. Two (2) members shall be appointed by the governor who shall serve terms of two (2) years. 

(b)  The commission has the duty of determining the prevailing wage rate for state construction. 

(c)  All reimbursement for travel expenses shall be in accordance with the provisions of the comprehensive travel regulations as promulgated by the department of finance and administration and approved by the attorney general and reporter. 

[Acts 1975, ch. 368, § 1; 1976, ch. 806, § 1(54); T.C.A., § 12-438; Acts 1983, ch. 218, § 1; 1990, ch. 658, § 1; 1999, ch. 520, § 33.]

12-4-405. Determination of prevailing wage.

For purposes of this part, the prevailing wage rate shall be determined as follows: 

(1) Every contractor, as herein defined, in the state of Tennessee, shall have the right to certify, on contracts entered into, to the commission, on or before October 31 in each year that a determination is to be made, the following: 

(A) Copies of payroll records for the immediate preceding calendar quarter by area as defined in subdivision (2); and 

(B) The numbers of hours worked and the straight time rate per hour paid for such hours in each of the classifications referred to in this part by area as defined in subdivision (2) for the immediate preceding calendar quarter; 

(2) (A) For purposes of calculating the prevailing wage rate for workers employed by building contractors, the state shall be deemed to consist of twelve (12) areas composed as follows: Area 1, Shelby County; Area 2, Crockett, Dyer, Fayette, Gibson, Hardeman, Haywood, Lake, Lauderdale, Obion, Tipton and Weakley counties; Area 3, Benton, Carroll, Chester, Decatur, Hardin, Henderson, Henry, Houston, Humphreys, McNairy, Perry, Stewart and Wayne counties; Area 4, Madison County; Area 5, Cheatham, DeKalb, Dickson, Macon, Montgomery, Robertson, Smith, Sumner, Trousdale, Williamson and Wilson counties; Area 6, Bedford, Cannon, Coffee, Franklin, Giles, Grundy, Hickman, Lawrence, Lewis, Lincoln, Marion, Marshall, Maury, Moore, Rutherford and Warren counties; Area 7, Anderson, Campbell, Clay, Cumberland, Fentress, Jackson, Morgan, Overton, Pickett, Putnam, Roane, Scott and White counties; Area 8, Hamilton County; Area 9, Bledsoe, Blount, Bradley, Loudon, McMinn, Meigs, Monroe, Polk, Rhea, Sequatchie, Sevier and Van Buren counties; Area 10, Knox County; Area 11, Carter, Claiborne, Cocke, Hancock, Grainger, Greene, Hamblen, Hawkins, Jefferson, Johnson, Sullivan, Unicoi, Union and Washington counties; and Area 12, Davidson County; 

(B) For purposes of calculating the prevailing wage rate for workers employed by highway contractors, the state shall be deemed to consist of one (1) statewide area; 

(3) (A) For purposes of determining the prevailing wage rate for workers employed by building contractors, the commission may issue classifications of crafts of workers and apprentices, including, but not limited to, the following: air conditioning mechanics; air tool operators (jackhammer, vibrator); boilermakers; bricklayers; carpenters; cement finishers; electricians; elevator constructors; glaziers; iron workers, structural; iron workers, ornamental; iron workers, reinforcing; laborers; lathers; marble setters; air compressors; blade graders; bulldozers; cranes, derricks, draglines; distributors; finishing machinists; firefighter oilers; hoists, one (1) drum; hoists, two (2) drum; mixers, 11s and larger; mixers, smaller than 11s; mason tenders; mortar mixers; painters, brush; painters, structural steel; pile driver persons; pipe layers (concrete and clay); plasterers; plasterers' tenders; plumbers; roofers; sheet metal workers; soft-floor layers; steam fitters; stone masons; terrazzo workers; tile setters; welders, receive rate prescribed for craft performing operations to which welding is incidental; truck drivers; motor graders; pile drivers; pumps; rollers; scrapers; shovels; tractors, forty (40) h.p. and larger; tractors, less than forty (40) horse power; and trenching machines; 

(B) For purposes of determining the prevailing wage rate for workers employed by highway contractors, the commission may issue classifications of crafts of workers including, but not limited to, the following: bricklayers; iron workers, structural; iron workers, reinforcing; carpenters or leadspersons; cement masons; nozzlepersons or gunpersons (gunite); painters or sandblasters; shovel operators; backhoe operators; crane operators; end loaders; pile driver operators; motor patrols, finish; concrete paver operators; mechanics, Class I; mechanics, Class II; motor patrols (rough); bulldozer or push dozer operators; scraper operators; trenching machine operators; central mixing (asphalt or concrete); tractors, booms and hoists; concrete finishing machines; soil cement machines; asphalt pavers; rollers, high type; spreaders, self propelled; distributors, bituminous; roller, other than finish; tractor, crawler, utility; dozers or loaders, stock piles only; concrete mixers, less than one (1) yard; mulchers or seeders; earth drills; scale operators; tractors, farm; curb machines; ditch pavers; pump operators; concrete saws; guardrail erectors; sign erectors; motor crane drivers; fence erectors; firefighters; asphalt rakers; tract drill operators; concrete edgers; powder persons; form setters, steel rods; air tool operators; mortar mixers; chain saws; pipe layers; concrete rubbers; laborers; flaggers; oilers; welder's helpers; mechanic's helpers; electricians; truck drivers, two (2) and three (3) axles; truck drivers, four (4) and five (5) axles or more or heavy duty off-the-road trucks; welders, receive rate for craft performing operation to which welding is incidental; 

(4) The prevailing wage rate for each area specified in subdivisions (2)(A) and (B) shall be determined by calculating the average hourly rate of pay for each classification referred to in subdivisions (3)(A) and (B). The commission shall determine the prevailing wage annually for highway construction and biennially for building construction from the documentation certified to the commission pursuant to subdivision (1). The commission, if it ascertains that current economic conditions warrant, can adjust the final wage determination as developed by the documentation certified to the commission by adding to or subtracting from the determination a percentage factor of not more than six percent (6%), based on the previous year's prevailing wage rates. Such determination shall be effective until the next determination of the prevailing wage rate pursuant to the terms hereof, unless herein otherwise specifically provided. The prevailing wage rate must be determined pursuant to the provisions of this part and the failure of any contractor or contractors to provide the documentation referred to in subdivision (1) shall not affect such determination; 

(5) (A) The commission shall determine the prevailing wage rate pursuant to the terms of this part and give notice thereof on or before December 1 of each year a determination is to be made. The commission shall give notice of such prevailing wage rate to all contractors who submitted documentation in accordance with subdivision (1) and to any others making written request for such notice. Such notice shall include the time and place of the public hearing required by § 12-4-406. The commission shall take all reasonable steps to verify the survey results submitted to it by contractors pursuant to the provisions of this part, and may, at any time, after first holding a public hearing thereon, adjust wage rates so that they reflect only survey data which has been verified by the commission; 

(B) The prevailing wage commission is urged to continue its efforts to develop an Internet application for the submission of survey forms by contractors and periodically update the general assembly on the progress of such development; and 

(6) Until such time as the commission makes a prevailing wage rate determination pursuant to the provisions of this part, the prevailing wage rate in effect on April 23, 1975, shall be considered to be the prevailing wage rate. 

[Acts 1975, ch. 368, §§ 1, 3; 1978, ch. 696, §§ 1-3; T.C.A., § 12-439; Acts 1983, ch. 218, § 2; 1991, ch. 36, § 1; 2004, ch. 538, § 1.]

12-4-406. Review of prevailing wage determination.

(a)  The commission shall conduct a public hearing within ten (10) days of the notice required in § 12-4-405. At such public hearing, the commission shall present the documentation provided for in this part other than payroll records, and any other facts upon which the prevailing wage determination was made. Any interested party may present any other facts or documentation material to the determination of the prevailing wage rate at such hearing. Within ten (10) days after such public hearing, the commission shall give notice of its final determination on such prevailing wage rate to all contractors who submitted documentation in accordance with the provisions of this part and to any others making written request for such notice. 

(b)  Judicial review of such final determination of the prevailing wage rate shall be in accordance with the provisions of the Uniform Administrative Procedures Act, compiled in title 4, chapter 5. 

[Acts 1975, ch. 368, § 1; T.C.A., § 12-440.]

12-4-407. Rates set out in specifications.

Before advertising for bids or entering into any contract for a state construction project, every state agency under whose jurisdiction such work is to be performed shall ascertain from the commission prevailing wage rates for all classifications as herein provided in the areas where the work is to be performed. This schedule of wages shall be attached to and made a part of the specifications for the work, and shall be printed on the bidding blanks and made a part of every contract for the construction of any state construction project. 

[Acts 1975, ch. 368, § 1; T.C.A., § 12-441.]

12-4-408. Wage rates promulgated - Contract provision required.

After the prevailing wage determination has been made by the commission, the same shall be furnished to all state agencies which may be charged with the responsibility of entering into any state contract, and shall specify what wage rates shall be paid on all classifications of work that may be used by such person, contractor, firm or corporation in carrying out such contractual agreement. In all cases where the commission has established a prevailing rate of wages, the contract executed between any state agency and the successful bidder or contractor shall contain a provision requiring the successful bidder and all of the successful bidder's subcontractors to pay the rate of wages so established. The successful bidder or contractor and all subcontractors shall strictly comply with these provisions of the contract. 

[Acts 1975, ch. 368, § 1; T.C.A., § 12-442.]

12-4-409. Bond for compliance.

In all cases where any state agency awards a contract for any state construction project under the provisions of this part, the bond of the contractor or subcontractor shall contain a provision obligating such contractor or subcontractor to a faithful performance of each and every requirement imposed upon such contractor or subcontractor under the terms of this part. 

[Acts 1975, ch. 368, § 1; T.C.A., § 12-443.]

12-4-410. Posting of wage rates.

Each contractor and subcontractor subject to the provisions of this part shall post and keep posted in a conspicuous place at the site of the construction work a copy of the prevailing wage rates prescribed in the state contract. 

[Acts 1975, ch. 368, § 1; T.C.A., § 12-444.]

12-4-411. Payroll records of contractors.

(a)  Any person, contractor, firm or corporation who may enter into any state contract shall furnish to the state agency entering into such contractual agreement any necessary forms, papers, payroll copies or any other information that may be required of any such person, contractor, firm or corporation by the state agency to show compliance with the provisions of this part. 

(b)  Payroll records shall not be destroyed for one (1) year following the completion of the state construction project. 

[Acts 1975, ch. 368, § 1; T.C.A., § 12-445.]

12-4-412. Breach of contract provisions - Actions against contractors - Advertising and reletting contract.

The commission or any employee of any contractor or subcontractor whose wages are determined pursuant to this part may maintain an action against any contractor or subcontractor for the breach of any condition of any performance bond given under the provisions of this part, and, in case of breach of any provision of such bond, the particular state agency which awarded the contract may advertise the work and relet the contract in the same manner as the original letting. 

[Acts 1975, ch. 368, § 1; T.C.A., § 12-446.]

12-4-413. Delegation of administrative responsibilities.

The commission may delegate administrative responsibilities conferred hereunder to the department of labor and workforce development. 

[Acts 1975, ch. 368, § 1; T.C.A., § 12-447; 1999, ch. 520, § 33.]

12-4-414. Inspection of records.

All records and documentation provided for in this part, other than payroll records, shall be made available for public inspection by the commission and the department of labor and workforce development during normal business hours. 

[Acts 1975, ch. 368, § 1; T.C.A., § 12-448; 1999, ch. 520, § 33.]

12-4-415. Rules and regulations.

The commission may promulgate such rules and regulations, neither inconsistent nor contradictory with this part, which it deems necessary to effectuate the provisions of this part. 

[Acts 1975, ch. 368, § 1; T.C.A., § 12-449.]