Bill > AB1198

This bill modifies California's public works laws—which require workers on government-funded construction projects to be paid standard local wages known as prevailing wages—by shifting the schedule for updating these wage rates from a quarterly basis to a semiannual basis, starting July 1, 2027. Under the new rules, updated wage rates will apply to large public works contracts valued at $35 million or greater that are awarded or put out to bid after that date, and the bill establishes a formal 20-day petition and review process allowing contractors, awarding bodies, or labor representatives to challenge a newly determined rate through an investigation or hearing by the Director of Industrial Relations. Additionally, the bill exempts certain 100% affordable housing projects from these mid-contract wage change requirements, ensuring that residential developments restricted for low- or moderate-income families maintain predictable labor costs under their existing contracts.