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AB-1198 • 2026

Public works: prevailing wages.

Public works: prevailing wages.

Labor
Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor
Haney
Last action
Official status
Senate - Appropriations
Effective date
Not listed

Plain English Breakdown

The official text contains conflicting dates (2026 vs. 2027) for the effective date, indicating an unresolved amendment or typo in the source material provided.

Changes to Public Works Wage Rules

This law changes how often wage rates for public construction projects are updated and adds a way for contractors or agencies to ask the state to review those new rates.

What This Bill Does

  • Requires the Director of Industrial Relations to check for wage rate changes every six months instead of every three months starting July 1, with the year listed as either 2026 or 2027 in the text.
  • Applies any new wage rate determination to public works contracts awarded or announced after that same start date.
  • Allows contractors, government agencies, or specified representatives affected by a rate change on a specific contract to file a verified petition within 20 days if they disagree with the decision.
  • Requires the Director of Industrial Relations to hold an investigation or hearing and make a final written decision within 20 days after receiving the petition.
  • Makes the director's final decision effective 10 days after it is issued.

Who It Names or Affects

  • Workers employed on public works projects
  • Contractors who build or manage public works contracts
  • Government agencies that award public work contracts
  • The Director of Industrial Relations

Terms To Know

Prevailing wages
The standard hourly pay rate set by the state for workers on government construction projects.
Notice to bidders
A public announcement that a project is open for companies to submit price offers or bids.
Verified petition
An official written request asking the state to review a wage rate decision, filed by someone affected by the change.

Limits and Unknowns

  • The law does not apply to certain housing projects that have deed restrictions or agreements with government agencies.
  • The text lists both July 1, 2026 and July 1, 2027 as possible start dates for the new rules.

Bill History

  1. California Legislative Information

    Senate - Appropriations

Official Summary Text

Public works: prevailing wages.