Bill > AB1198

This bill, effective July 1, 2027, modifies how changes to prevailing wages, which are the general hourly rates paid to workers on public works projects, are handled. Currently, the Director of Industrial Relations determines these rates quarterly, and any changes are final unless a contract's notice to bidders has already been published. This bill shifts to semiannual determinations, meaning changes will apply to contracts awarded or for which bids are solicited after July 1, 2027, regardless of when the notice to bidders was published. It also establishes a process for contractors or awarding bodies to petition the director for a review of a rate change within 20 days, requiring the director to investigate or hold a hearing and issue a final determination within another 20 days. These new determinations become effective 10 days after issuance. Importantly, the bill exempts certain housing projects, specifically those where 100% of the units are restricted as affordable housing, from these updated prevailing wage rules.

Budget and Finance, Labor and Employment

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260AB1198