Impacts of AB 1851

On Dec. 23, 2022, AGC of California updated members via email on the impact of AB 1851, which amends California labor code relating to prevailing wages for on-haul trucking on public works projects, and share background on AGC of California’s efforts to clarify the legislation’s intent.

The following is the update AGC of California provided:

AGC of California is advising contractors that AB 1851 does not contain language that warrants any change to the existing prevailing wage standard.

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.

• 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.