BILL ANALYSIS Ó AB 1926 Page 1 ASSEMBLY THIRD READING AB 1926 (Cooper) As Amended March 30, 2016 Majority vote ------------------------------------------------------------------ |Committee |Votes|Ayes |Noes | | | | | | | | | | | | | | | | |----------------+-----+----------------------+--------------------| |Labor |6-0 |Roger Hernández, Chu, | | | | |Linder, McCarty, | | | | |O'Donnell, Thurmond | | | | | | | |----------------+-----+----------------------+--------------------| |Appropriations |16-4 |Gonzalez, Bloom, |Bigelow, Jones, | | | |Bonilla, Bonta, |Obernolte, Wagner | | | |Calderon, Chang, | | | | |Daly, Eggman, | | | | |Gallagher, | | | | | | | | | | | | | | |Eduardo Garcia, | | | | |McCarty, Holden, | | | | |Quirk, Santiago, | | | | |Weber, Wood | | | | | | | | | | | | ------------------------------------------------------------------ AB 1926 Page 2 SUMMARY: Provides that certain time spent by apprentices on public works projects shall be paid at prevailing wage rates. Specifically, this bill specifies that, unless otherwise provided by a collective bargaining agreement, when a contractor requests the dispatch of an apprentice to perform work on a public works project and requires the apprentice to fill out an application, or undergo testing, training, an examination, or other pre-employment process as a condition of employment, the apprentice shall be paid for time spent on the required activity, including travel time, at the prevailing wage rate for apprentices in the trade to which he or she is registered. EXISTING LAW: 1)Requires that, except as specified, not less than the general prevailing rate of per diem wages be paid to workers employed on public works projects. 2)Provides that an apprentice employed upon public works is required to be paid the prevailing rate of per diem wages for apprentices in the trade to which he or she is registered and to be employed only at the work of the craft or trade to which he or she is registered, as specified. FISCAL EFFECT: According to the Assembly Appropriations Committee, this bill will result in minor and absorbable costs to the Department of Industrial Relations to enforce the requirements of the bill and process any related wage claims. COMMENTS: This bill provides that certain time spent by apprentices on public works projects shall be paid at prevailing wage rates. According to the author, this bill will help apprentices continue with their apprenticeship training program AB 1926 Page 3 by ensuring they receive fair compensation when dispatched to a construction site ready and prepared to work, complete certain pre-employment requirements at the request of the contractor, but are not hired by the contractor for that project. The author and sponsor argue that an apprentice is completely responsible to arrive on time and ready for work. Apprentices and construction workers are always required to travel to where the work is. However, when an apprentice is dispatched, but not put to work they lose out on an entire day's wages and miss the opportunity to learn new skills to advance in their training. Therefore, this bill provides apprentices dispatched to contractors with their properly owed prevailing wage rate in the event a contractor does not use the apprentice for construction work, but requires the apprentice to undergo testing, added safety training, or any other pre-employment requirements. The apprentice would receive payment only for the time spent on the required activity. Opponents argue that mandating payment of wages before a hiring decision is made seems contrary to most usual interpretations of an employment relationship. A contractor requests apprentices to satisfy the requirements of prevailing wage law but for a number of possible reasons, the contractor may ultimately choose not to use the apprentice or may not even be lawfully able to employ the apprentice. Analysis Prepared by: Ben Ebbink / L. & E. / (916) 319-2091 FN: 0002838 AB 1926 Page 4