FERNDALE— Washington’s Department of Labor & Industries has opened an investigation into allegations that workers on the City of Ferndale’s new City Hall project were underpaid prevailing wages, according to agency records and documents provided by the North Coast States Carpenter’s Union.
The complaint, filed June 24, alleges that Hernandez Framing LLC, the wood-framing subcontractor on the project, failed to pay legally required prevailing wages on the publicly funded construction project. In a July 2 acknowledgment letter, Labor & Industries confirmed it had accepted the complaint for investigation but made no determination on the merits of the allegations. The agency said complex prevailing wage investigations can take four months to a year or longer to complete.
The investigation centers on the construction of Ferndale’s new Civic Campus, a roughly 19,000-square-foot facility that will house City Hall, the municipal court, City Council chambers and administrative offices. Ferndale awarded the construction contract to Dawson Construction for approximately $15.5 million after a competitive bidding process. City officials have said the project is funded through a combination of city reserves, state and federal grants, real estate excise taxes and a 20-year municipal bond.
According to a payroll analysis prepared by union representatives, Hernandez Framing LLC submitted a $390,000 bid for the wood-framing portion of the project. The analysis estimates workers logged 2,939 hours between April and June 2026 and calculates approximately $44,349.51 in alleged unpaid prevailing wages based on the classifications used in the complaint.
The figures contained in the union analysis have not been verified by Labor & Industries, and the agency has not issued findings regarding whether any wage violations occurred.
The complaint comes after another prevailing wage investigation involving a different subcontractor on a separate Dawson Construction public works project.
In January 2024, Labor & Industries concluded that Casa Bella Construction LLC underpaid 19 workers on the Sunnyland Elementary School project in Bellingham by $123,629.58 in prevailing wages plus $18,300.96 in interest after investigators determined workers had been improperly classified. The agency said Dawson Construction worked with the subcontractor to ensure all affected employees received back wages and interest. Casa Bella agreed to educational requirements as part of a settlement, and penalties were waived.
That prior case does not involve the Ferndale City Hall project or Hernandez Framing LLC but has been cited by union representatives as an example of previous prevailing wage enforcement involving the same general contractor.
Prevailing wage laws require contractors on public works projects to pay workers wage rates and benefits established by the state based on the type of work performed.
As of Friday, Labor & Industries had not announced any findings in the Ferndale investigation, and no determination has been made that Hernandez Framing LLC violated state prevailing wage laws. The investigation remains pending.
The Lynnwood Times reached out the Hernandez Framing LLC, the City of Ferndale, and Washington State Department of Labor and Industries but has not received comment as of the publication of this article.
Author: Kienan Briscoe
