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| Montana Administrative Register Notice 24-17-407 | No. 1 01/12/2024 | |
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BEFORE THE DEPARTMENT OF LABOR AND INDUSTRY STATE OF MONTANA
TO: All Concerned Persons
1. On October 20, 2023, the Department of Labor and Industry (agency) published MAR Notice No. 24-17-407 regarding the public hearing on the proposed changes to the above-stated rule, at page 1240 of the 2023 Montana Administrative Register, Issue No. 20.
2. On November 9, 2023, a public hearing was held on the proposed changes to the above-stated rule via the videoconference and telephonic platform. Comments were received by the deadline.
3. The agency has thoroughly considered the comments received. A summary of the comments and the agency responses are as follows:
COMMENT 1: A commenter stated they did not support the rulemaking.
RESPONSE 1: The comment is noted. Because further detail was not provided, further response is not feasible.
COMMENT 2: A commenter suggested that prevailing wages should not be allowed to decrease. Similarly, a commenter noted decreases in certain laborer wage rates.
RESPONSE 2: Establishment of prevailing wage rates is statutorily driven. Those statutes require a survey of wages paid to determine the appropriate rates. The statutes do not provide for a prohibition on a decrease in wage rates. To the extent the comment is intended to suggest an alternative methodology for the calculation of rates, it is outside the scope of this rulemaking.
COMMENT 3: A commenter requested that the heavy construction rate schedule should include a Cement Mason rate.
RESPONSE 3: The department has reviewed the survey data received and determined that no rate can be established. Pursuant to rule, fewer than 40 workers were reported, there is no applicable collective bargaining agreement, and there is no federal rate. As such, the rate is not established.
COMMENT 4: A commenter requested recalculation of Operator 3, 4, and 5 classifications, and suggested higher rates be set for certain of the classifications.
RESPONSE 4: The department has reviewed the Operator 3, 4, and 5, classifications and rates and determined them to have been appropriately calculated pursuant to applicable administrative rules.
COMMENT 5: A commenter suggested that Operator 1 and 2 zone pay should be calculated the same as Operator 3 through 7 zone pay.
RESPONSE 5: The department has reviewed Operator 1 and 2 zone pay and determined them to have been appropriately calculated pursuant to applicable administrative rules. Operator 3 through 7 were also appropriately calculated. The wage rates received split operator types between dirt work (1 and 2) and crane work (3 through 7). Crane work receives per diem rather than zone pay.
COMMENT 6: A commenter suggested that Operator 1 and 2 should have a higher fringe benefit to correspond to other Operator groups.
RESPONSE 6: In reviewing the Operator 1 and 2 fringe rates, it was determined that Operator 1 was incorrectly calculated. It should be $14.40 instead of $14.10. The change is set forth below.
COMMENT 7: A commenter suggested that the fringe benefit for truck drivers should be similar to operators.
RESONSE 7: The department has reviewed the fringe benefit rates and determined them to have been appropriately calculated pursuant to applicable administrative rules.
COMMENT 8: A commenter suggested that operators, laborers, and truck drivers should have a zone pay established.
RESPONSE 8: The department has reviewed the noted rates and determined them to have been appropriately calculated pursuant to applicable administrative rules. These changes correspond to changes made in federal contracting to no longer include zone pay. Likely resulting from that change, received collective bargaining agreements no longer include the zone pay. Based on a lack of federal zone pay and a lack of CBA-reflecting zone pay, such pay is not included in these adopted rates.
COMMENT 9: A commenter suggested that the trucker benefit rate should not decrease from 2022 to this year.
RESPONSE 9: The department has reviewed the trucker benefit rates and determined them to have been appropriately calculated pursuant to applicable administrative rules.
COMMENT 10: A commenter provided additional wage information for plumbers, pipefitters, and steamfitters.
RESPONSE 10: The department has recalculated the rates, as set forth below, based on this new information.
COMMENT 11: A commenter submitted additional wage information for painters and drywall applicators.
RESPONSE 11: The department has recalculated the rates, as set forth below, based on this new information.
COMMENT 12: Commenters submitted additional wage information for sheet metal worker and heating and air conditioner classifications.
RESPONSE 12: The department has recalculated the rates, as set forth below, based on this new information.
COMMENT 13: A commenter suggested that installation of flooring should be within the carpenter classification.
RESPONSE 13: Current classifications are in line with Standard Occupational Codes, which the department utilizes for consistency. Adopting the classification change through an adoption notice would not permit public comment on the classification, and so the department does not make the amendment at this time. However, the 2024 survey to establish wages will state that installation of wood and laminate products, as well as related natural and synthetic flooring will be included within the carpenter classification.
4. The following rates in the Montana Prevailing Wages Rates for Building Construction Services 2024 publication, incorporated by reference in the rule, have been amended as follows, stricken matter interlined, new matter underlined:
Drywall Applicators Wage Benefit District 1 $ District 2 $ District 3 $ District 4 $
Painters Wage Benefit District 1 $ District 2 $21.28 $ District 3 $25.55 $ District 4 $
Plumbers Wage Benefit District 1 $
Heating and Air Conditioning Wage Benefit District 1 $ District 2 $ District 3 $ District 4 $
Sheet Metal Workers Wage Benefit District 1 $ District 2 $ District 3 $ District 4 $
5. The following rates in the Montana Prevailing Wages Rates for Heavy Construction Services 2024 publication, incorporated by reference in the rule, have been amended as follows, stricken matter interlined, new matter underlined:
Construction Equipment Operators Group 1 Wage Benefit $30.76 $
6. The agency has amended ARM 24.17.127 as proposed.
Certified to the Secretary of State January 2, 2024.
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A directory of state agencies is available online at http://www.mt.gov/govt/agencylisting.asp.
For questions about the organization of the ARM or this web site, contact sosarm@mt.gov.
