WHAT'S NEW?  

Watch for New Changes in Prevailing Wage in January

Each January 1, dozens of new prevailing wage bills become law. Depending on where you are located, different laws will apply. Here are a few to watch for in California:

California Assembly Bill 1198 creates significant changes to prevailing wage on large public works projects of $35 Million or more, effective July 1, 2027.

The current rule relating to updated wage rates was that prevailing wages were only subject to increase if there was an increased rate and date published with the initial wage determination tied to the first bid advertisement date. This change will require a contractor to pay higher wages even when those increased rates are not available at the time of a bid. The new change applies to contracts awarded or advertised after July 1, 2027.  

Example: Contractor is using the classification of Laborers and there is no wage increase listed in the prevailing wage rates tied to the bid advertisement date. Yet, when new rates are published by the DIR six months or a year later, the contractor will now be subject to those increased rates.

While there is a provision for a contractor or awarding agency to challenge the new rates. The process includes filing a special petition with the Department of Industrial Relations (DIR) within 20 days of the publication of new rates. The Director of the DIR has the final say regarding these increased wage rates.

There is a specific exemption under this law for certain housing developments, which include deed restrictions and are subject to affordability restrictions.

This creates several problems for contractors, subcontractors and public agencies. Contractors will not know what wage increases to expect and will likely want to ask for change orders; while agencies have a set budget with limited funds which are not easily expanded to address new wage increases. 

Other changes this year in California include restricting what documents can be used to defend a claim brought by the Department of Industrial Relations (DIR), if one did not already disclose and produce certain documents in a timely manner through the DIR’s investigation process.

Training Opportunities

Tuesday - January 12th Webinar What’s New in 2027 for California Prevailing Wage Law. California Special District Association. 10:00 a.m.- 11:00 a.m. To register, go to www.csda.net

Sunday - January 24th Creating Your Own Prevailing Wage Checklist – 1:00-2:00 p.m. CAPPO Annual Conference CAPPO 2027 110th Annual Conference & Supplier Expo

March 9-10 Denver, Colorado- ABC Annual Conference. Stop by the CCMI Exhibit Booth at the Gaylord Rockies Resort and Convention Center. Booth 512

March 14-16 Washington D.C. Join Deborah at the Women Construction Owners and Executives’ Legislative Conference at the Willard Hotel. Register att www.womenbuildamerica.com

May 3-7 Save the Date: LCPtracker’ s Bi- Annual Ignite Conference in Anaheim. Join Deborah and the CCMI team at this informative and powerful conference. Stop by our booth or drop into one of Deborah’s training sessions. www.lcptracker.com

CCMI has joined the LCPtracker Consultant Alliance Program. We look forward to continuing to connect with industry professionals, sharing knowledge, and supporting the construction compliance community through education and collaboration.

If you need more training, Deborah Wilder is the presenter on the LCPtracker Academy Prevailing wage workshops. Go to www.LCPtracker.com and select the education tab.

Want to schedule your own prevailing wage workshop?

We will customize a workshop or webinar for you and your Agency/Account. Contact us at: info@ccmilcp.com