Construction Industry News
A message from our colleagues at the DIR
Newsline No.: 2017-24 Date: March 28, 2017
DIR Appeals U.S. District Court’s Ruling that Blocks Labor Commissioner’s Enforcement of AB 219 Prevailing Wage Requirements for Ready-Mix Concrete Suppliers
The Department of Industrial Relations (DIR) has appealed the judgment and permanent injunction that blocks the Labor Commissioner’s enforcement of prevailing wage requirements for the delivery of ready-mix concrete to public works projects (AB 219). The judgment and order, made by the U.S. District Court for the Central District of California, are the Court’s final decision and prohibit DIR and the Labor Commissioner from enforcing AB 219.
Following the Court’s ruling on March 14, 2017, DIR asked for a stay of the injunction pending the outcome of the appeal. If the injunction is stayed, and DIR is successful on appeal, the Department intends to enforce all prevailing wage requirements from AB 219’s effective date of July 1, 2016, to the full extent allowed by law. Contractors and subcontractors should also be aware that if they choose not to pay prevailing wages to workers on public works projects, they may still be subject to claims for unpaid wages and penalties by parties who are not subject to the injunction. You should consult with your attorney if you have any questions.
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