Recent Prevailing Wage Decision

DEPARTMENT OF INDUSTRIAL RELATIONS ISSUES STAY ON MARCH 4 DECISIONS EXPANDING PREVAILING WAGE TO OFF-SITE FABRICATION

by: Shaaron A. Bangs, attorney with Crawford & Bangs

On April 16, the California Department of Industrial Relations (DIR) issued a formal notice that the implementation of the ambiguous March 4 administrative decisions expanding prevailing wage requirements to off-site fabrication and pre-fabrication is suspended effective March 4 until administrative appeals of these decisions are resolved. The DIR did not release details on the appeals process. The decisions remain posted on the DIR website with the stay notice on the first page, and the DIR has NOT indicated that its decisions are wrong. This is a temporary and uncertain victory for contractors. See the decisions on the DIR website at http://www.dir.ca.gov/dlsr/Coverage/2000-027.pdf and http://www.dir.ca.gov/dlsr/Coverage/2002-064.pdf.