Labor Code Section 1720.9 effective July 1, 2016
Last year, AB 219 was passed in Sacramento. It adds Section 1720.9 to the California Labor Code and requires prevailing wages to be paid to ready-mix concrete drivers, from their receipt of concrete at the factory or batching plant to their return trip to the factory or batching plant on “public works” projects. Payment of prevailing wages will apply to contracts awarded on or after July 1, 2016.
Section 1720.9 expands the definition of “public works” under the Labor Code to include "the hauling and delivery of ready-mixed concrete to carry out a public works contract". A public works project is one for any state agency, including the California State University and University of California systems, or any political subdivision of the state, which would include local agencies and school districts, among others. Section 1720.9 defines ready-mixed concrete as "concrete that is manufactured in a factory or a batching plant, according to a set recipe, and then delivered in a liquefied state by mixer truck for immediate incorporation into a project."
This section requires the entity hauling or delivering ready-mix concrete to submit certified payroll records to the company that hired it, within three working days after the employee has been paid. Those records must be accompanied by a written time record certified by each driver who hauled or delivered the ready-mixed concrete. The entity hauling or delivering ready-mixed concrete shall be considered a subcontractor, solely for the purposes of this chapter of the Labor Code.
Section 1720.9 requires, on public works projects, that a written subcontract be entered between the entity hauling or delivering the ready-mixed concrete and the party who hired it. That subcontract shall require compliance with this chapter of the Labor Code.
Please keep in mind this when bidding work requiring these services after July 1, 2016.
