BEFORE THE DEPARTMENT OF LABOR AND INDUSTRY
OF THE STATE OF MONTANA
In the matter of the amendment of ARM 24.17.127 concerning prevailing wages
NOTICE OF PUBLIC HEARING ON PROPOSED AMENDMENT
TO: All Concerned Persons
1. On February 25, 2022, at 9:00 a.m., the Department of Labor and Industry (department) will hold a public hearing via remote conferencing to consider the proposed amendment of the above-stated rule. There will be no in-person hearing. Interested parties may access the remote conferencing platform in the following ways:
a. Join Zoom Meeting, https://mt-gov.zoom.us/j/84460150040, Meeting ID: 844 6015 0040, Passcode: 083872; or
b. Dial by telephone, +1 406 444 9999 or +1 646 558 8656, Meeting ID: 844 6015 0040, Passcode: 083872.
All participants will be muted except when it is their time to speak.
2. The department will make reasonable accommodations for persons with disabilities who wish to participate in this public hearing or need an alternative accessible format of this notice. If you require an accommodation, contact the department no later than 5:00 p.m., on February 18, 2022, to advise us of the nature of the accommodation that you need. Please contact the Data Management Unit, Employment Relations Division, Department of Labor and Industry, Attn: Mike Smith, P.O. Box 8011, Helena, MT 59604-8011; fax (406) 444-4140; or e-mailed to MSmith3@mt.gov.
3. The rule as proposed to be amended provides as follows, new matter underlined, deleted matter interlined:
24.17.127 ADOPTION OF STANDARD PREVAILING RATE OF WAGES
(1) through (1)(d) remain the same.
(e) The current building construction services rates are contained in the 2022 amended version of the "Montana Prevailing Wage Rates for Building Construction Services" publication.
(f) remains the same.
(g) The current heavy construction services rates are contained in the 2022 amended version of the "Montana Prevailing Wage Rates for Heavy Construction Services" publication.
(h) through (3) remain the same.
AUTH: 2-4-307, 18-2-409, 18-2-431, MCA
IMP: 18-2-401, 18-2-402, 18-2-403, 18-2-406, 18-2-411, 18-2-412, 18-2-413, 18-2-414, 18-2-415, 18-2-422, 18-2-431, MCA
REASON: Reasonable necessity exists to amend the insulation workers – mechanical (Heat and Frost) wage rates for building and heavy construction because, though timely received by the department, survey information applicable to the rates were not properly included in the wage rate calculations. For building construction, this information, once included, will increase the wage rate for all districts from $35.37 to $37.37 and decrease the benefit amount from $21.87 to $19.87. For heavy construction, the wage rate would increase from $37.97 to $39.97, and the benefit amount will decrease from $21.87 to $19.87. For both building and heavy construction, the 50- to 60-mile travel pay will increase from $45.00 per day to $50.00 per day.
4. Concerned persons may present their data, views, or arguments either orally or in writing at the hearing. Written data, views, or arguments may also be submitted to the Data Management Unit, Employment Relations Division, Department of Labor and Industry, Attn: Mike Smith, P.O. Box 8011, Helena, MT 59604-8011; fax (406) 444-4140; or e-mailed to MSmith3@mt.gov, and must be received no later than 5:00 p.m., February 25, 2022.
5. The department maintains a list of interested persons who wish to receive notices of rulemaking actions proposed by this agency. Persons who wish to have their name added to the list shall make a written request, which includes the name and e-mail or mailing address of the person to receive notices and specifies the particular subject matter or matters regarding which the person wishes to receive notices. Such written request may be mailed or delivered to the contact person in paragraph 2 or may be made by completing a request form at any rules hearing held by the agency.
6. The bill sponsor contact requirements of 2-4-302, MCA, do not apply.
7. With regard to the requirements of 2-4-111, MCA, the department has determined that the amendment of the above-referenced rule may significantly and directly impact small businesses. The proposed amendments will have an impact on some, but not all small businesses. The proposed amendments directly affect the wages that must be paid for work on Montana public works contracts.
Montana law requires that prevailing wage rates be set following an annual survey of wages. There is an established statutory and administrative formula that establishes the prevailing wage rate for each work classification, based on the data and information gathered. The alternative to amending the wage rates is to not amend the rate, thus freezing the wage rate at the last-adopted level. Some employers would probably be adversely affected by the failure to adopt new prevailing wage rates. The department believes that under either alternative, some small businesses will be adversely affected by the selected alternative. The small businesses likely to be adversely affected by adoption of new rates are probably not the same as those that are likely to be adversely affected by not adopting new rates.
8. Department staff has been designated to preside over and conduct this hearing.
/s/ QUINLAN L. O'CONNOR
Quinlan L. O'Connor
Alternate Rule Reviewer
/s/ LAURIE ESAU
Laurie Esau, Commissioner
DEPARTMENT OF LABOR AND INDUSTRY
Certified to the Secretary of State January 18, 2022.