CaliforniaPrevailing wage: per diem wages.
What it does
Existing law requires workers employed on public works to be paid not less than the general prevailing rate of per diem wages for work of a similar character in the locality that the public work is performed, as prescribed, unless an exception applies. Existing law requires the Director of the Department of Industrial Relations to determine the general prevailing rate of per diem wages for work of a similar character in the locality in which the public work is to be performed.
More detail
Under existing law, per diem wages include certain employer payments made pursuant to a collective bargaining agreement or for a program or committee established under the federal Labor Management Cooperation Act of 1978, as specified. Existing law provides that these payments are a credit against the obligation to pay the general prevailing rate of per diem wages.
Existing law requires the credit for employer payments to be computed on an annualized basis where the employer seeks credit for employer payments that are higher for public works projects than for private construction performed by the same employer, except under certain circumstances, including a determination by the director that annualization would not serve the purposes of the provisions relating to public works projects.
This bill would remove that exception and revoke annualization exemptions authorized by the director prior to January 1, 2026. The bill would authorize an employer to take full credit for the hourly amounts contributed to defined contribution pension plans that provide for both immediate participation and essentially immediate vesting even if the employer contributes at a lower rate or does not make contributions to private construction. The bill would require the employer to prove that the credit for employer payments was calculated properly. The bill would authorize the Labor Commissioner to deny the employer credit for employment payments if the employer does not produce payment records.
The bill would make related findings and declarations.
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Where it stands
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2025
- Oct 11Chaptered by Secretary of State - Chapter 626, Statutes of 2025.Latest
- Oct 11Approved by the Governor Gavin Newsom.Became Law
- Sep 24Enrolled and presented to the Governor at 3 p.m.To Governor
- Sep 13Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 77. Noes 1. Page 3449.).Major
- Vote recorded AB 889 Hadwick Concurrence in Senate Amendments. Result: pass.Lower
- Sep 13Joint Rules 61(a)(14) and 51(a)(4) suspended. (Ayes 59. Noes 20. Page 3413.)
- Sep 10In Assembly. Concurrence in Senate amendments pending.
- Vote recorded 3rd Reading AB889 Hadwick et al. By Limón. Result: pass.Upper
- Sep 10Read third time. Passed. Ordered to the Assembly. (Ayes 36. Noes 0. Page 2812.).Passed Senate
- Sep 8Read second time. Ordered to third reading.Minor
- Sep 5Read third time and amended. Ordered to second reading.Major
- Aug 20Read second time. Ordered to third reading.Minor
- Aug 19From committee: Be ordered to second reading pursuant to Senate Rule 28.8.Minor
- Jul 9From committee: Do pass and re-refer to Com. on APPR. (Ayes 4. Noes 0.) (July 9). Re-referred to Com. on APPR.Minor
- Vote recorded Do pass, but first be re-referred to the Committee on [Appropriations]. Result: pass.Upper
- Jun 12In committee: Set, second hearing. Hearing canceled at the request of author.
- Jun 11In committee: Set, first hearing. Hearing canceled at the request of author.
- May 21Referred to Com. on L., P.E. & R.Minor
- May 8In Senate. Read first time. To Com. on RLS. for assignment.Minor
- Vote recorded AB 889 Hadwick Consent Calendar Second Day. Result: pass.Lower
- May 8Read third time. Passed. Ordered to the Senate. (Ayes 69. Noes 0. Page 1486.)Passed Assembly
- May 1Read second time. Ordered to Consent Calendar.Minor
- Apr 30From committee: Do pass. To Consent Calendar. (Ayes 14. Noes 0.) (April 30).Minor
- Vote recorded Do pass. To Consent Calendar. Result: pass.Lower
- Apr 3From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 7. Noes 0.) (April 2). Re-referred to Com. on APPR.Minor
- Apr 2
- Vote recorded Do pass and be re-referred to the Committee on [Appropriations] with recommendation: To Consent Calendar. Result: pass.Lower
- Mar 3Referred to Com. on L. & E.Minor
- Feb 20From printer. May be heard in committee March 22.
- Feb 19Read first time. To print.Introduced