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Committee advances bill to update prevailing wage application on long public works projects
Summary
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.
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.
Eddie Bernanke (National Electrical Contractors Association / United Contractors) and Keith Dunn (State Building and Construction Trades Council) testified the change is necessary as advertised bid dates can precede construction by several years and collective bargaining agreements can change while work is ongoing; Bernanke said contractors must currently estimate future wage rates when bidding, creating a competitive disadvantage for union contractors who must pay updated bargaining rates during the work.
Opponents including the Rural County Representatives of California, California State Association of Counties, League of California Cities, and California Special Districts Association said the bill could create unforeseen cost increases during projects, particularly in rural jurisdictions with constrained funds and long procurement cycles, potentially jeopardizing projects funded by state and federal grants or bonds. Housing advocates asked for exemptions for affordable housing projects. Supporters said they would continue discussions with opposition to address concerns.
The committee established quorum and moved AB 1198 to Appropriations. The transcript recorded the committee roll call and the motion was reported as passed to the next committee.
