BILL ANALYSIS �
AB 26
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 26 (Bonilla)
As Amended August 22, 2014
Majority vote
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|ASSEMBLY: | |(August 18, |SENATE: |25-10|(August 27, |
| | |2013) | | |2014) |
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(vote not relevant)
Original Committee Reference: L. & E.
SUMMARY : Clarifies that work performed during the
postconstruction phases of construction on a public works
project, including all cleanup work at the jobsite, is
considered part of the project and should be compensated at the
prevailing wage rate.
The Senate amendments delete the Assembly version of this bill
and instead revise the definition of "construction" for purposes
of public works projects to also include work performed during
the postconstruction phases of construction, including, but not
limited to, all cleanup work at the jobsite. Senate amendments
also contain language to avoid a chaptering out conflict with AB
2272 (Gray) of the current legislative session.
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.
AS PASSED BY THE ASSEMBLY , this bill enacted various provisions
related to projects funded from the Greenhouse Gas Reductions
Fund and related curriculum.
FISCAL EFFECT : According to the Senate Appropriations
Committee, pursuant to Senate Rule 28.8, negligible state costs.
COMMENTS : This bill was substantially amended in the Senate and
the Assembly-approved provisions of this bill were deleted.
AB 26
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In a 2009 decision by the director of the Department of
Industrial Relations (DIR), who is responsible for making the
prevailing wage determinations, regarding whether or not
clean-up work was part of the construction project and therefore
subject to the prevailing wage payment appears to indicate that
the department 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 his 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
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
AB 26
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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."
Analysis Prepared by : Ben Ebbink / L. & E. / (916) 319-2091
FN: 0005352