Public works: prevailing wages

Large public-works projects may have to use updated local wage rates even after bidding begins, while fully affordable housing developments remain under the current rule that locks rates at bid notice or contract award.

What the law does ​

• Changes prevailing-wage rate updates from quarterly to semiannual determinations by the Director of Industrial Relations.
• Applies updated rates to covered $35 million-or-more public-works contracts awarded or advertised for bids after July 1, 2027.
• Lets contractors, awarding bodies, and affected worker representatives petition within 20 days to challenge a rate determination.
• Requires the Director of Industrial Relations to investigate or hold a hearing and generally issue a final written decision within 20 days.
• Makes rate determinations effective 10 days after issuance and keeps them in effect until changed, rescinded, or replaced.
• Exempts qualifying 100% affordable housing developments from the new mid-procurement rate-update rule.

Who it affects ​

• Contractors and workers on public-works prime contracts valued at $35 million or more.
• Public entities that award covered public-works contracts.
• Labor representatives for affected construction crafts and classifications.
• Developers and contractors on qualifying fully affordable housing projects.

Context ​

The law takes effect July 1, 2027.