Despite Preliminary Injunction, Prevailing Wage Required by AB 219 Still Needs to Be Paid
October 26, 2016 - Even though a federal district court in Los Angeles has issued a preliminary injunction temporarily blocking the implementation of the prevailing wage requirements of Assembly Bill 219, manufacturers subject to the law are being advised to continue to pay prevailing wage. AB 219 is the State Building Trades/Teamsters/CA Federation of Labor sponsored law enacted last year requiring that prevailing wage be paid to all drivers of trucks carrying ready-mixed concrete, regardless of whether they are employed by the project contractor or the concrete manufacturer.
Manufacturers sued to overturn the law and a federal court has granted a preliminary injunction blocking its implementation while the case proceeds. The Attorney General of California, the Teamsters and the State Building Trades are in the process of appealing this injunction. However, the California Department of Industrial Relations is advising those manufacturers that if their challenge to AB 219 is ultimately unsuccessful, they will be held liable for back wages and penalties if they have failed to pay prevailing wage.
Concrete suppliers are therefore advised to continue to meet their obligations under AB 219, even though the court has granted them a preliminary injunction.
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