BILL NUMBER: AB 972 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Ian Calderon
FEBRUARY 22, 2013
An act to amend Section 1773.9 of the Labor Code, relating to
public works.
LEGISLATIVE COUNSEL'S DIGEST
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 1. Section 1773.9 of the Labor Code is amended to read:
1773.9. (a) The Director of Industrial Relations shall use the
methodology set forth in subdivision (b) to determine the general
prevailing rate of per diem wages in the locality in which
where the public work is to be performed.
(b) The general prevailing rate of per diem wages includes all of
the following:
(1) The basic hourly wage rate being paid to a majority of workers
engaged in the particular craft, classification, or type of work
within the locality and in the nearest labor market area, if a
majority of the workers is paid at a single rate. If no
a single rate is not being paid to a
majority of the workers, then the single rate being paid to the
greatest number of workers, or modal rate, is prevailing. If a modal
rate cannot be determined, then the director shall establish an
alternative rate, consistent with the methodology for determining the
modal rate, by considering the appropriate collective bargaining
agreements, federal rates, rates in the nearest labor market area, or
other data such as wage survey data.
(2) Other employer payments included in per diem wages pursuant to
Section 1773.1 and as included as part of the total hourly wage rate
from which the basic hourly wage rate was derived. In the event the
total hourly wage rate does not include any employer payments, the
director shall establish a prevailing employer payment rate by the
same procedure set forth in paragraph (1).
(3) The rate for holiday and overtime work shall be those rates
specified in the collective bargaining agreement when the basic
hourly rate is based on a collective bargaining agreement rate. In
the event the basic hourly rate is not based on a collective
bargaining agreement, the rate for holidays and overtime work, if
any, included with the prevailing basic hourly rate of pay shall be
prevailing.
(c) (1) If the director determines that the general prevailing
rate of per diem wages is the rate established by a collective
bargaining agreement, and that the collective bargaining agreement
contains definite and predetermined changes during its term that will
affect the rate adopted, the director shall incorporate those
changes into the determination. Predetermined changes that are
rescinded prior to their effective date shall not be enforced.
(2) When the director determines that there is a definite and
predetermined change in the general prevailing rate of per diem wages
as described in paragraph (1), but has not published, at the time of
the effective date of the predetermined change, the allocation of
the predetermined change as between the basic
hourly wage and other employer payments included in per diem wages
pursuant to Section 1773.1, a contractor or subcontractor may
allocate payments of not less than the amount of the definite and
predetermined change to either the basic hourly wage or other
employer payments included in per diem wages for up to 60 days
following the director's publication of the specific allocation of
the predetermined change.
(3) When the director determines that there is a definite and
predetermined change in the general prevailing rate of per diem wages
as described in paragraph (1), but the allocation of that
predetermined change as between the basic hourly
wage and other employer payments included in per diem wages pursuant
to Section 1773.1 is subsequently altered by the parties to a
collective bargaining agreement described in paragraph (1), a
contractor or subcontractor may allocate payments of not less than
the amount of the definite and predetermined change in accordance
with either the originally published allocation or the allocation as
altered in the collective bargaining agreement.