BILL ANALYSIS Ó
AB 26
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Date of Hearing: August 13, 2014
ASSEMBLY COMMITTEE ON LABOR AND EMPLOYMENT
Roger Hernández, Chair
AB 26 (Bonilla) - As Amended: June 16, 2014
SUBJECT : Construction: prevailing wage.
SUMMARY : Clarifies that the definition of "construction" for
purposes of public works projects also includes work performed
during the postconstruction phases of construction, including,
but not limited to, all cleanup work at the jobsite.
EXISTING LAW defines the term "public works" to include, among
other things, construction, alteration, demolition, installation
or repair work done under contract and paid for in whole or in
part out of public funds. "Construction" also includes work
performed during the design and preconstruction phases of
construction, including, but not limited to, inspection and land
surveying work.
FISCAL EFFECT : According to the Senate Appropriations Committee,
pursuant to Senate Rule 28.8, negligible state costs.
COMMENTS : A 2009 decision by the director of the Department of
Industrial Relations (DIR) regarding whether or not clean-up
work was part of the construction project and therefore subject
to the prevailing wage payment appears indicates that DIR has
deemed this work as part of the project and therefore subject to
prevailing wage. (Harbor Construction Co., Inc. vs. Antelope
Valley Union High School District, Case No: 09-0095-CPR) In the
decision, the director of DIR stated that, "Contrary to Harbor's
argument, the janitorial exception to maintenance work has no
applicability where the root obligation to pay prevailing wages
is found in section 1772, and 1774. The janitorial exception
only applies to contracts let solely for maintenance work and
not to cleaning work performed as a requirement of a broader
public works contract."
Although the director's interpretation of the applicability of
prevailing wage requirements on clean-up work at a public works
project seems to address the ambiguity, there needs to be
clarity in the Labor Code to ensure consistency in its
applicability. This bill would clarify that, for purposes of
public works projects, "construction" work also includes work
AB 26
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performed during the postconstruction phases of construction,
including, but not limited to, all cleanup work at the jobsite.
According to the author, prevailing wage laws were enacted to
ensure skilled construction workers on public works projects are
paid at least the wages and benefits that prevail in their local
communities. Unfortunately, proponents argue, this bill is
necessary to address a problem that has persisted on public
works projects that has allowed dishonest contractors to
side-step prevailing wage law when it comes to the final
clean-up work on a public works project. The author argues that
while the general prevailing wage determination includes "all
final cleanup of debris, grounds, and buildings near the
completion of the project," state law does not specify that this
work is included within the definition of "public works."
According to the author, the lack of clarity has resulted in
some public works employees performing cleanup work but not
receiving a prevailing wage for that work.
Further, the author contends that the discrepancy in pay
compromises the quality of projects and restricts workers'
ability to enter the middle-class. Additionally, proponents
argue that the lack of conformity makes it difficult for
contractors who pay prevailing wages to submit competitive bids
for public works projects. This bill seeks to remedy this issue
by including work performed during the postconstruction phases
of construction, including, but not limited to, all cleanup work
at a jobsite within the definition of "public works."
There is no opposition on file.
REGISTERED SUPPORT / OPPOSITION :
Support
California State Council of Laborers (sponsor)
California Labor Federation, AFL-CIO
California School Employees Association
Southern California Contractors Association
State Building and Construction Trades Council
United Contractors
Opposition
AB 26
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None on file.
Analysis Prepared by : Ben Ebbink / L. & E. / (916) 319-2091