Enter to open, tab to navigate, enter to select
Two New Laws Expand the Influence of California Contractors’ Trade Union
Practical Law Legal Update w-001-0785 (Approx. 3 pages)
Two New Laws Expand the Influence of California Contractors’ Trade Union
by Practical Law Real Estate
| Published on 06 Jan 2016 • California |
California’s Assembly Bills 852 and 1358 took effect on January 1, 2016, imposing new wage and workforce requirements on private construction contracts.
Effective January 2016, two new laws, Assembly Bill 852 and Assembly Bill 1358, will dramatically change private construction projects in California (Cal. Labor Code § 1720.7 and Cal. Educ. Code § 17250.55). The bills represent an ongoing effort by the State Building and Construction Trades Council of California (SBCTC) to require owners of private projects to:
- Pay prevailing wage.
- Only use SBCTC affiliated contractors.
These requirements are typical of public construction projects but had previously not been standard on private work. Failure to comply with these new laws could subject private owners and contractors to civil and criminal penalties.
Assembly Bill 852
Beginning January 1, 2016, owners and contractors must pay workers California’s prevailing wage when:
- Performing private construction, alteration, demolition, installation or repair work on hospitals with more than 76 beds.
- Financed in whole or in part by conduit revenue bonds.
This new law will substantially raise costs on these types of private construction projects.
Assembly Bill 1358
AB 1358 requires design-build entities who bid on design-build projects for California school districts to:
- Commit to school districts that they (and all employed subcontractors) will use a “skilled and trained workforce” to perform all work on the project.
- Provide evidence to the school district of adherence to this requirement.
Under the new law, a “skilled and trained workforce” is comprised of “skilled journeypersons” or registered apprentices, which include those workers who have graduated from state approved apprenticeship programs in California. This law therefore effectively requires that all contractors and subcontractors hired by California school districts be associated with the SBCTC, as the SBCTC sponsors most state approved apprenticeship programs