ABC of California won a major victory April 28 when California’s 4th District Court of Appeals ruled that as a charter city, Vista can exempt itself from the state’s prevailing wage laws for construction projects financed solely by the city. Charter cities in California are able to govern their own municipal affairs.
The State Building and Construction Trades Council of California, AFL-CIO argued that the state’s 114 charter cities, including Vista, should require contractors to pay prevailing wages because prevailing wage laws are a matter of statewide concern, not a municipal concern. A loss in a state superior court in December 2007 prompted the council to file the appeal in April 2008. In response, ABC of California filed a “friend of the court” brief in support of Vista’s right to decide how to spend its money on construction projects.
The court ruled that projects funded by the city are a local concern rather than of state-wide importance, upholding the right of Vista to exempt its local construction projects from having to comply with the state prevailing wage mandates. The decision has the potential to set a precedent for California.
“This is good news for California taxpayers and the construction industry,” said Kevin Dayton, state government affairs director for ABC of California. “Dealing with California’s complicated prevailing wage laws is an administrative burden that costs money for contractors as well as taxpayers. This decision will encourage charter cities to build more local projects and provide more jobs in a construction industry that is struggling right now.”
For more information, contact Kevin Dayton at ABC of California,
dayton@abc-cal.org.
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