Impacts of AB 1851

On March 31, 2023, AGC of California alerted members of the Department of Industrial Relations’ updated FAQ regarding the passage of AB 1851 and its impact to hauling of material onto public works sites.

The updated FAQ confirms AGC of California’s previous communication which advised that AB 1851 does not contain language that warrants any change to the existing prevailing wage standard.

AGC of California advocated heavily in the negotiation process of AB 1851, and our efforts resulted in the final language signed into law that sought to preserve the status quo of prevailing wage coverage for hauling onto public projects. After the bill was signed into law AGC of California continued that advocacy to ensure the legislation’s intent was clearly understood by the necessary public agencies.

Background & Impact

AGC of California was heavily engaged in the negotiation process of AB 1851. The final language signed into law sought to preserve the status quo of prevailing wage coverage for hauling onto public projects. Read our Dec. 23, 2022 to the DIR here.

• AB 1851 has no language that merits any change to the existing prevailing wage standard. The legislation specifically sought to do the opposite: in section one of the bill, the clear intent of the legislature is to maintain the existing standard of coverage.
• After the bill’s passage, AGC of California became concerned that the Department of Industrial Relations (DIR) may interpret the passage of AB 1851 as a change to the current application of prevailing wage for on-haul trucking.
• As a result, AGC of California and fellow industry stakeholders have submitted formal comments to DIR reinforcing the intent of the legislation and requesting that the department provide guidance as soon as possible to prevent unnecessary confusion or disadvantage in bidding.
• AGC of California continues to be actively engaged in the interpretation and application of AB 1851.
• We are sharing information with fellow associations and industry groups and will update members of any new developments as they occur.

AGC of California strives to be a resource that provides members with timely information so you can continue operations with minimal disruption or uncertainty. If you have any questions on the application of AB 1851 to your work, please contact AGC of California, at 916-371-2422, and ask for a member of the Labor Relations team.