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Welcome to our newsletter! You will find important updates and industry related news, along with upcoming speaking events and educational opportunities. Thank you for your interest in CCMI.

Deborah Wilder
CCMI President 

California Supreme Court Issues Two Rulings on Prevailing Wage Cases

On August 16th, the California Supreme Court issued rulings on two potential prevailing wage cases. The Court determined that for both the work performed was not subject to California prevailing wages. Busker v. Wabtec Corporation (No. S251135) and Mendoza v. Fonseca McElroy Grinding Co., Inc. (No. S253574). The Court rejected in both cases the plaintiff employees' reading of the law that would have significantly expanded the kinds of work for which prevailing wages must be paid.

Busker involved a subcontractor (Wabtec) which was to upgrade railcars for Metrolink. In 2015, the DLSE issued a civil wage and penalty assessment of $6,468,564 against Wabtec for failure to pay prevailing wages. Wabtec requested review by the Labor Commissioner, arguing that the prevailing wage law does not apply to the onboard work because the law covers only work performed on real property, not “rolling stock” like locomotives and buses. After review, the DLSE vacated the assessment and took no further action. A number of workers then filed a class action suit against Wabtec, claiming that prevailing wages should have been paid. The California Supreme Court disagreed and found in favor of Wabtec that the “rolling stock” train cars did not fall within the definition of prevailing wage coverage, in part because the train cars were not affixed to Metrolink’s property. Work performed in Metrolink’s yard relating to signals and rail and other items affixed to the property did trigger prevailing wage and Wabtec had properly paid prevailing wages in that instance.

Mendoza involved mobilization; the offsite preparation, loading and delivery of equipment to a project as part of the mobilization on a new project site. While work on the site itself is covered by prevailing wages, the preparatory work conducted in the contractor’s yard, the loading of equipment and the delivery of that to the jobsite was not covered by prevailing wage as that work was performed “offsite” and offsite work is not subject to California prevailing wages.

The plaintiff employees in Mendoza did not contend that their work was a "public work" under section 1720; they argued only that, under section 1772, their work was covered because it was performed "in the execution" of a public works contract.

The Court concluded that section 1772 did not enlarge coverage beyond that delineated by section 1720. In reaching that conclusion, the Court abrogated lower-court decisions that had adopted a multifactor test for determining whether work ancillary to a construction project, such as hauling or off-site fabrication, falls within the statute under section 1772. Now, prevailing wages must be paid for such work only if it falls within one of the categories of covered work specified in section 1720. Please note that on site preparatory work would remain covered by prevailing wages.

Many thanks to Jones Day and Hanson Bridgett who both wrote exceptional articles on these two cases and we incorporated a few of their comments.
WEBINAR: Prevailing Wage Basics for Public Agencies
September 14th from 9-11 a.m
We will cover the critical parts of prevailing wages that impact Public Agencies: mandatory contract language, contractor registration, contractor debarment, filing a PWC-100, selecting the correct prevailing wage determination, the components of labor compliance documentation and best practices for labor compliance on your projects. Webinar conducted by Deborah Wilder, president of CCMI.

Only $89 dollars for up to 2 hours of prevailing wage information.

Upcoming Training:

Prevailing Wage Basics for Public Agencies September 14th from 9-11 a.m. via Zoom. Please see our website for more details and to submit payment: http://www.ccmilcp.com/store.html

The U.S. Department of Labor’s Wage and Hour Division (WHD) will offer compliance seminars for contracting agencies, contractors, unions, workers, and other stakeholders to provide information on the requirements governing payment of prevailing wages on federally funded construction and service contracts. While in person training is always best, those will not be returning until at least 2022. Seminar attendance is free, however registration is required. Participants may register at https://www.eventbrite.com/e/department-of-labor-virtual-prevailing-wage-seminar-tickets-161236758485.

League of California Cities Annual Meeting Sacramento, California September 22nd and 23rd. Stop by our booth at the Exhibit Hall.
Want to schedule your own prevailing wage workshop?
We will customize a workshop or webinar for you and your Agency/Company. Contact us at: info@ccmilcp.com 
LCPtracker Ignite Conference
Register now and join compliance industry experts, contractors, and government personnel from cities and counties at the most comprehensive and intensive Davis-Bacon and prevailing wage training and education conference. The Ignite Conference is scheduled for November 15-17 at the Loews Coronado Hotel. To register, go to:https://lcptracker.regfox.com/ignite-2021 

Deborah Wilder will be speaking at 7 different sessions.
What Every Contractor Should Know About Prevailing Wages, 3rd Edition.
Available through www.ccmilcp.com $45 inclusive of tax and shipping.
FROM THE INBOX....You asked, we answered!
QUESTION: I am a contractor in Virginia and am confused by the new Virginia prevailing wage law. Some counties within the State are implementing their own threshold and rules while others have not, can you help me understand?
ANSWER: The Virginia legislature recently implemented prevailing wage requirements on public projects over $250,000. The Virginia Department of Labor and Industry (DOLI) is implementing this new change and the state is using Davis Bacon wage determinations. The legislation also allows Counties to implement their own program and establish a threshold and rules and regulations for monitoring their own County public works projects Arlington County adopted the state threshold of $250,000. Apparently, a county can implement a higher threshold for County projects.

Stay tuned as many counties have this under review and I would expect that many counties will implement their own threshold and enforcement programs before the end of the year. The easy part of this is that Virginia is using federal Davis Bacon wage rates for all public works projects requiring prevailing wages. We also do not think the Virginia legislature is through with this law yet. We would expect amendments to the law over the next few years; perhaps even including penalties for failure to submit certified payroll within a certain period or penalties for contractors who underpay the prevailing wage rate.

Feel free to send your questions to info@ccmilcp.com
CCMI is not just another firm....

We are not merely a "consulting" firm, but rather a team of individuals who understand the needs of the Public Entity and contractors to "get the project done." Our staff includes retired contractors, auditors, attorneys and industry veterans.