AB 972, as introduced, Ian Calderon. Public works: prevailing wage rates.
Existing law requires that, except as specified, not less than the general prevailing rate of per diem wages, determined by the Director of Industrial Relations, be paid to workers employed on public works projects. Existing law requires the body awarding a contract for a public work to obtain from the Director of Industrial Relations the general prevailing rate of per diem wages for work of a similar character in the locality where the public work is to be performed, and the general prevailing rate of per diem wages for holiday and overtime work, for each craft, classification, or type of worker needed to execute the contract. Under existing law, the director is required to use a specified methology to determine the prevailing rate of per diem wages in the locality where the public work is to be performed.
This bill would make technical, nonsubstantive changes to those provisions.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 1773.9 of the Labor Code is amended to
2read:
(a) The Director of Industrial Relations shall use the
4methodology set forth in subdivision (b) to determine the general
5prevailing rate of per diem wages in the localitybegin delete in whichend deletebegin insert whereend insert
6 the public work is to be performed.
7(b) The general prevailing rate of per diem wages includes all
8of the following:
9(1) The basic hourly wage rate being paid to a majority of
10workers engaged in the particular craft, classification, or type of
11work within the locality and in the nearest
labor market area, if a
12majority of the workers is paid at a single rate. Ifbegin delete noend deletebegin insert
aend insert single rate
13isbegin insert notend insert being paid to a majority of the workers, then the single rate
14being paid to the greatest number of workers, or modal rate, is
15prevailing. If a modal rate cannot be determined, then the director
16shall establish an alternative rate, consistent with the methodology
17for determining the modal rate, by considering the appropriate
18collective bargaining agreements, federal rates, rates in the nearest
19labor market area, or other data such as wage survey data.
20(2) Other employer payments included in per diem wages
21pursuant to Section 1773.1 and as included as part of the total
22hourly wage rate from which the basic hourly wage rate was
23derived. In the event the total hourly wage rate does not include
24any employer payments, the director shall establish a prevailing
25employer payment rate by
the same procedure set forth in
26paragraph (1).
27(3) The rate for holiday and overtime work shall be those rates
28specified in the collective bargaining agreement when the basic
29hourly rate is based on a collective bargaining agreement rate. In
30the event the basic hourly rate is not based on a collective
31bargaining agreement, the rate for holidays and overtime work, if
32any, included with the prevailing basic hourly rate of pay shall be
33prevailing.
34(c) (1) If the director determines that the general prevailing rate
35of per diem wages is the rate established by a collective bargaining
36agreement, and that the collective bargaining agreement contains
37definite and predetermined changes during its term that will affect
38the rate adopted, the director shall incorporate those changes into
P3 1the determination. Predetermined changes that are rescinded prior
2to their effective
date shall not be enforced.
3(2) When the director determines that there is a definite and
4predetermined change in the general prevailing rate of per diem
5wages as described in paragraph (1), but has not published, at the
6time of the effective date of the predetermined change, the
7allocation of the predetermined changebegin delete asend delete between the basic hourly
8wage and other employer payments included in per diem wages
9pursuant to Section 1773.1, a contractor or subcontractor may
10allocate payments of not less than the amount of the definite and
11predetermined change to either the basic hourly wage or other
12employer payments included in per diem wages for up to 60 days
13following the director’s publication of the specific allocation of
14the predetermined change.
15(3) When the director determines that there is a
definite and
16predetermined change in the general prevailing rate of per diem
17wages as described in paragraph (1), but the allocation of that
18predetermined changebegin delete asend delete
between the basic hourly wage and other
19employer payments included in per diem wages pursuant to Section
201773.1 is subsequently altered by the parties to a collective
21bargaining agreement described in paragraph (1), a contractor or
22subcontractor may allocate payments of not less than the amount
23of the definite and predetermined change in accordance with either
24the originally published allocation or the allocation as altered in
25the collective bargaining agreement.
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