…and its subsequent interpretations, as it relates to the on hauling of materials used for paving, grading, and fill onto a public works site.”


w Thank you in advance for your attention and review of this request. T Sincerely,


Chris O’Connor, Associated General Contractors of California Ro


the DIR mitigate any confusion in the construction industry with respect to AB 1851 with written guidance indicating the current situation as it existed prior to the Court’s opinions in and  and that no new standard was created by AB 1851.


This measure was passed and signed into law without any opposition from the signatories of this letter because of the willingness of the author and his sponsors to negotiate a statute that clarified the current application of prevailing wage as it relates to on-haul trucking.We ask that t


Robert Dugan, California Construction and Industrial Materials Association Scott Govenar, Construction Employers’ Association Chris Shimoda, California Trucking Association Tod


Todd Bloomstine, Southern California Contractors Association Edd


Eddie Bernacchi, United Contractors


Unifying the Industry – Negotiations and Advocacy


BY CHRIS O’CONNOR, BRIAN MELLO AND PETER TATEISHI, AGC OF CALIFORNIA T 16


he buzz in AGC of California cir- cles this year has been the effort of the organization to continue


to lead by example, making attempts to coordinate and unify the industry as much as possible. Tis renewed focus has been at the


direction of AGC of California members, large and small, and especially from the member leadership serving on the State Board of Directors. The need is clear. Years of mutual


distrust has built up between industry associations and groups of contractors.


CALIFORNIA CONSTRUCTOR NOVEMBER/DECEMBER 2023


We have shared objectives and challeng- es, but more often than not, we see each other as opponents. Tis internal division continues to be the most significant and persistent source of weakness contractors are plagued with when entering negotiations with labor unions, government agencies and poli- ticians. Too often one type of contractor will strike deals to curry favor that benefit their specific company or subset of the industry.


Te benefits of those deals never shake out to be as good as initially thought and


are rarely worth the long-term unintended consequences. Tat’s why AGC of California mem- bers and staff set off on a New Year’s resolution aimed at proactively reaching out to fellow industry associations, and their contractors, in an effort to increase collaboration on the issues that are most important to our industry.


Labor Relations – Aligning the Industry One of the areas AGC of California is actively engaging in is labor relations.


December 23, 2022


Katrina Hagen Director, Department of Industrial Relations 160 Promenade Circle, Suite 300, Sacramento, CA 95834


Subject: AB 1851 and the Prevailing Wage On-Haul Standard


Our associations – which represent contractors, trucking employers and material suppliers across the State – are concerned that the Department of Industrial Relations (DIR) may interpret the application of Assembly Bill 1851 (AB 1851) as a change to the current application of prevailing wage for on-haul trucking. Additionally, we request that the Department provide guidance on this matter as soon as possible to head off any unnecessary confusion or disadvantage in bidding to concerned stakeholders.


As you know, the California Labor Code section 1772 and subsequent case law has helped establish the scope of coverage of prevailing wage. Specifically, this section has deemed that workers employed “in the execution” of a public work contract should be deemed to be employed on a public work.


Authored by Assemblymember Robert Rivas, AB 1851 sought to clarify if on-haul trucking at public works projects must be paid a prevailing wage. This clarification was sought by the bill sponsors and author based on their belief that “a series of recent California Supreme Court decisions (commonly known as the and decisions) found that because on-haul trucking is not specifically mentioned in statute as comprising part of a public works project, it is unclear whether it falls under prevailing wage requirements” (AB 1851 Fact Sheet).


Negotiations with stakeholders resulted in chaptered bill language that clarifies the intent of the author, sponsors, and stakeholders that AB 1851 simply restores the status quo prior to the above referenced supreme court decisions. This was accomplished by: 1. Underscoring that prevailing wage is paid to an individual truck driver if their work is integrated into the flow process of construction ( [Civ. No. 45232. Court of Appeals of California, Second Appellate District, Division Three. February 19, 1976.]


2. Stating the intent of the Legislature in enacting “paragraph (2) of subdivision (a) of Section 1720.3 of the Labor Code to restore, as of the effective date of this act, the holding of  (1976) 55 Cal.App.3d 434,….


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