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WHAT'S NEW?
Please remember that prevailing wage laws typically change January 1 or July 1. Please be sure to check with your state about prevailing wage changes each year.
California AB 889 This new law in California requires contractors to annualize their contributions for health and welfare, holiday vacation and similar benefits when claiming credit for prevailing wage fringe benefits. There was some question about how that would apply to certain apprenticeship contributions and whether apprenticeship contributions need to be annualized. This is the response I received from the DIR on January 27, 2026:
“LCO’s interpretation of annualization has not changed based on AB 889; the only difference is that employers’ contributions to fringe benefit plans which previously received an exemption from the Director will now be subject to annualization requirements. As you point out, “the new law is silent on this issue” of training fund contributions. As such, the bill had no effect on the exceptions to annualization under 1777.5(m)(1). You may wish to refer to the Public Works Manual which provides detailed explanations and examples of annualizations, including section 4.2.6.5 which addresses payments to the California Apprenticeship Council Pursuant to section 1777.5.”
Section 1777.5(m)(1) reads: “A contractor to whom a contract is awarded who, in performing any work under the contract, employs journeymen or apprentices in any apprenticeable craft or trade, shall contribute to the California Apprenticeship Council the same amount the director determines is the prevailing amount of apprenticeship training contributions in the area of the public work site. A Contractor may take as a credit for payments to the Council any amounts paid by the contractor to an approved apprenticeship program that can supply apprentices to the site of the public works project….”.
- If a contractor is making training contributions to a union apprenticeship program, that is acceptable.
- If a contractor is making training contributions to the California Apprenticeship Council, that is acceptable.
- This clarification from the DIR means that contractors making training contributions to “other” DAS apprenticeship committees (ABC or WECA) are also acceptable.
No annualization required for any training contributions made under the three scenarios outlined here.
Other New Changes
New York Starting December 31, 2025, all contractors and subcontractors working on projects covered by Article 8 of NYS Labor Law must electronically provide certified payroll records to the New York State Department of Labor through the Certified Payroll portal. Payroll information must be reported every 30 days.
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