Prevailing Wage Update: Projects with Public Funding of Infrastructure May be Required to Pay Prevailing Wages

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The Second District Court of Appeal rendered a potentially significant decision impacting private projects that obtain public funding for public infrastructure associated with the private project.

In the case of Azusa Land Partners v. Department of Industrial Relations, decided in late December, the Court, while coming to a not surprising conclusion given past determinations by the Department of Industrial Relations, established a significant judicial precedent. If upheld by the California Supreme Court, the opinion will affect developer’s decisions whether, and to what degree, it makes sense to request public funds to assist in the development of private projects.

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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.

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