Prevailing Wage Update: Charter Cities Exempt From Prevailing Wage Laws


In the recent decision, State Building and Construction Trades Council of California, AFL-CIO v. City of Vista (Fourth District Court of Appeal, Division 1, Case No. D05218, Filed April 28, 2009), the California Court of Appeal held that the prevailing wage laws (California Labor Code§§ 1720-1780) do not represent matters of statewide concern and therefore a charter city such as Vista is not required to comply with prevailing wage laws for public works projects financed solely from city revenues. While a petition for hearing by the California Supreme Court is certainly likely, if this opinion is upheld it creates a major inroad into the application of prevailing wage laws in California. There are approximately 80 charter cities in California, including major centers of development activity, such as Los Angeles, San Francisco, San Diego, Anaheim, Long Beach, Riverside and San Bernardino. The potential cost differential between projects subject to prevailing wage requirements and those that are not is estimated to be between 20 and 30 percent, depending on the type of construction involved.

Please see full newsletter for more information.

LOADING PDF: If there are any problems, click here to download the file.

Written by:

Published In:

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Manatt, Phelps & Phillips, LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.