Existing law requires that, except as specified, not less than the general prevailing rate of per diem wages, determined by the Director of Industrial Relations, be paid to workers employed on public works projects. Existing law defines "public works" to include, among other things, construction, alteration, demolition, installation, or repair work done under contract and paid for, in whole or in part, out of public funds, but exempts from that definition, among other projects, an otherwise private development project if the state or political subdivision provides, directly or indirectly, a public subsidy to the private development project that is de minimis in the context of the project.
This bill would generally provide that a public subsidy is de minimis if it is both less than $500,000 and less than 2% of the total project cost. The bill would specifically provide that a public subsidy for a residential project that consists entirely of single-family dwellings is de minimis if it is less than 2% of the total project cost. The bill would specify that these provisions do not apply to a project that was advertised for bid, or a contract that was awarded, before July 1, 2021.

Statutes affected:
AB 2231: 1724 LAB
02/13/20 - Introduced: 1724 LAB
05/06/20 - Amended Assembly: 1720 LAB, 1724 LAB
AB2231: 1724 LAB