In 2009 the Legislature passed a bill in one of the extraordinary sessions which placed the monitoring of prevailing wage of public works projects with the Director of Industrial Relations (DIR). The bill was signed by the Governor; however, the provisions were questioned by several bond counsels and implementation was delayed. The questionable provision was a flat amount to be paid to DIR for the monitoring of prevailing wages on each project.
The implementation was delayed because there is no provision in the state bond acts for this expenditure and it was viewed as illegal. AB 436 of 2011 was passed and signed by the Governor on September 30, 2011 in an attempt to fix this problem (Chapter 378, Statutes of 2011).
DIR has developed the new regulations for implementation of AB 436, and the public comment period closes on October 14, 2011. Further information and the proposed changes to regulations can be viewed on the following website:
Paul H. Holmes