Public works: prevailing wages.

Assembly Member Haney's proposal to modify California's prevailing wage determination process would establish a new framework for updating and challenging public works wage rates, shifting from quarterly to semiannual rate reviews starting July 1, 2026.

The legislation creates a formal petition process for contractors, awarding bodies, and worker representatives to contest wage determinations. Affected parties would have 20 days after a new rate determination to file a verified petition with the Director of Industrial Relations, who must then investigate or hold a hearing. The Director must issue a final determination within 20 days of receiving the petition, unless all parties agree to an extension. These determinations take effect 10 days after issuance and remain valid until modified, rescinded, or superseded.

Under the current system, prevailing wage rate changes do not apply to contracts where bid notices have already been published. The new provisions would apply updated rates to all contracts awarded or noticed for bid after July 1, 2026. The bill maintains the requirement that public works projects pay no less than the general prevailing per diem wage rates as determined by the Director, while establishing clearer timelines and procedures for rate adjustments and appeals.