CSAC Takes Oppose Position to Bill Requiring Prevailing Wage for Ready-Mix Concrete Delivery
CSAC now opposes Assembly Bill 219, by Assembly Member Tom Daly,
which would expand the definition of “public works” for the
purpose of prevailing wage requirements, to include the delivery
of ready-mix concrete.
Current law requires the payment of prevailing wage to subcontractors who haul material to public works sites. Longstanding legal precedent, notably a 1999 Department of Industrial Relations decision in Alameda Corridor Project: A&A Ready Mix Concrete and Robertson’s Ready-Mix Concrete, has determined that concrete entities are material suppliers and not subcontractors and are therefore not subject to prevailing wage law.
The expansion of the scope of to what work prevailing wage would apply is not only unnecessary based on existing law and legal decisions, but the effects would carry major costs to counties. The proposed changes in AB 219 could double the labor cost per hour of ready-mix delivery on public works projects, a cost that would be passed down to counties that are already struggling to maintain our aging local streets and roads and provide basic services to our residents.
Additional costs to counties would occur through added liability and monitoring costs. Awarding bodies of specific public works projects are required to monitor and enforce compliance with prevailing wage laws. AB 219 would expand counties’ scope of responsibility pertaining to prevailing wage compliance, increasing our overall project budgets and exposing counties to further liability issues.
AB 219 will be heard in the Senate Appropriations Committee on July 6.