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Bill would require prevailing wages be paid at time work is performed on long public works projects, unions say
Summary
AB 1198 would require contractors on public works to pay prevailing wages in effect when the work is performed rather than the rate published when the project was advertised. Union groups said the change would close a competitive loophole; local governments and rural associations warned about midstream cost uncertainty.
Assemblymember Haney presented AB 1198, saying the bill would "ensure that workers receive the current prevailing wages on projects regardless of when a project was announced for bid." The sponsor told the committee that when projects are advertised years before construction begins, advertised prevailing wage rates become outdated, and non‑union bidders can exploit published rates to underbid.
Union representatives, including Eddie Bernanke of United Contractors and Keith Dunn of the State Building and Construction Trades Council, argued the bill levels the playing field for contractors who must estimate future wage increases when bidding long‑duration projects or alternative delivery projects such as design‑build. Bernanke said nonunion contractors can bid using the published rate at advertisement and gain a competitive advantage.
Opponents including the Rural County Representatives and a coalition of local government associations warned that midstream prevailing wage increases could create unanticipated cost pressures for public agencies and jeopardize projects—particularly in rural jurisdictions with limited funds. They urged the author to work on amendments to address those concerns.
Assemblymember Haney said he would continue talks with opposition groups. The committee established a quorum and referred the bill to the Appropriations Committee.
