Public works: prevailing wages.

Plain English Breakdown

The bill summary and digest indicate that the changes will start on July 1, 2027, not 2026.

Public Works: Prevailing Wages

This law changes the timing of when new prevailing wage rates take effect for public works contracts and allows contractors to challenge wage determinations.

What This Bill Does

• Changes the timing of when new prevailing wage rates take effect for public works contracts, starting July 1, 2027.
• Allows contractors or awarding bodies to file a petition within 20 days if they disagree with a wage determination.
• Requires the Director of Industrial Relations to review and make a final decision on any petitions filed.
• Exempts certain housing projects from these new rules.

Who It Names or Affects

• Workers on public works projects
• Contractors working on public works contracts
• Awarding bodies for public works contracts

Terms To Know

Prevailing wages

The standard rates of pay for different types of work in a specific area.

Public works projects

Construction or renovation projects funded by the government, like roads, bridges, and buildings.

Limits and Unknowns

• Does not specify what happens if the director's decision is challenged.
• The bill does not mention how it will be enforced.
• It only applies to contracts awarded after July 1, 2027.

Official Summary Text

AB 1198, as amended, Haney.
Public works: prevailing wages.
Existing law requires that, except as specified, not less than the general prevailing rate of per diem wages, determined by the Director of Industrial Relations, be paid to workers employed on public works projects. Existing law requires the body awarding a contract for a public work to obtain from the director the general prevailing rate of per diem wages for work of a similar character in the locality in which the public work is to be performed, and the general prevailing rate of per diem wages for holiday and overtime work, for each craft, classification, or type of worker needed to execute the contract. Under existing law, if the director determines during any quarterly period that there has been a change in any prevailing rate of per diem wages in a locality, the director is required to make that change available to the awarding body and their determination is final. Under
existing law, that determination does not apply to public works contracts for which the notice to bidders has been published.
This bill would instead state, commencing July 1,
2026,
2027,
that if the director determines, within a semiannual period, that there is a change in any prevailing rate of per diem wages in a locality, that determination applies to any public works contract that is awarded or for which notice to bidders is published after July 1,
2026.
2027.
The bill would authorize any contractor, awarding body, or specified representative affected by a change in rates on a
particular contract to, within 20 days, file with the director a verified petition to review the determination of that rate, as specified. The bill would require the director to, upon notice to the interested parties, initiate an investigation or hold a hearing, and, within 20 days after the filing of that petition, except as specified, make a final determination and transmit the determination in writing to the awarding body and to the interested parties. The bill would make that determination issued by the director effective 10 days after its issuance, and until it is modified, rescinded, or superseded by the director.
The bill would exempt certain housing projects from these provisions, including, among others, projects that are restricted by deed or subject to regulatory restrictions contained in an agreement with a governmental agency or other recorded document, as specified.

Current Bill Text

Download Bill PDF