Committee advances bill to update prevailing wage application on long public works projects

Apr 2, 2025

AB 1198 would require contractors to pay prevailing wages in effect when the work is performed rather than the rate posted when a project is first advertised; construction trades pushed the bill as a fix to underbidding and wage suppression, while rural and local government groups raised cost and project‑viability concerns.

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Assemblymember Haney presented AB 1198, the Fair Pay for Construction Workers Act, which would require contractors on public works projects to pay the prevailing wage that is in effect when the work is performed rather than the wage published when the project was advertised for bid. Haney and supporters said the current rule allows nonunion bidders to exploit out‑of‑date rates on long‑duration projects and alternative delivery methods such as design‑build and progressive design‑build, producing downward pressure on wages and unfairly disadvantaging union contractors.

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