California Assembly Bill AB1198

California 2025-2026 Regular Session

• Introduced: 2/21/25
• Refer: 3/10/25
• Report Pass: 4/3/25
• Refer: 4/3/25
• Refer: 4/23/25
• Report Pass: 1/22/26
• Engrossed: 1/29/26
• Refer: 1/29/26
• Refer: 5/6/26

Caption

An act to amend, repeal, and add Section 1773.6 of of, and to add Section 1773.65 to, the Labor Code, relating to public works.

Impact

The bill will notably alter the application of wages on public works contracts awarded after July 1, 2026. The new provisions would give contractors and interested parties the right to appeal nominal determinations regarding wage changes, allowing them to contest these decisions within a specified time frame. This framework aims to ensure fairness for both contractors and workers by implementing a clear process for reviewing and appealing wage determinations. Additionally, certain housing projects will be exempt from these regulations, particularly those aimed at providing affordable housing restricted for low or moderate-income families, thus addressing community needs.

Summary

Assembly Bill 1198, introduced by Assembly Member Haney, seeks to amend existing labor regulations related to prevailing wages on public works projects in California. The current law mandates that workers employed on such projects must receive no less than the general prevailing rate of per diem wages determined by the Director of Industrial Relations. AB 1198 aims to modify the timeline for these wage determinations, shifting from a quarterly to a semiannual review period. This change is intended to ensure that wage adjustments reflect more recent economic conditions and provide contractors with timely information needed to comply with labor standards.

Sentiment

The discussion surrounding AB 1198 has revealed a mix of supportive and critical opinions. Proponents argue that updating the wage determination process will streamline operations and enhance compliance, ultimately benefiting both workers and contractors. Conversely, opponents raise concerns regarding the potential inadequacies of a semiannual review system, suggesting that it may not effectively address fluctuations in local economic conditions in a timely manner. This division illustrates the complexities of labor relations and the ongoing debate about how to best protect workers' rights while also supporting contractors.

Contention

Key points of contention in the legislative discussion include concerns over whether the bill strikes the right balance between timely wage adjustments and the bureaucratic nature of appeals. Critics fear that lengthening the review period may lead to workers not receiving timely wage increases, particularly in fast-moving economic landscapes. As the bill progresses, it is evident that stakeholders on both sides are vigilant about how these changes will play out in practice, ensuring that the interests of both labor and business are duly considered.