The judge presiding over Allied Concrete, et al. versus Brown, et al. ruled Labor Code section 1720.9 unconstitutional Monday and granted a motion for summary judgment.
The Court found the Labor Code violates the Equal Protection Clause of United States Constitution.
AB 219 passed in 2015, expanding coverage of California's Prevailing Wage Law to include hauling and delivery of ready-mix concrete to public works projects. The companies initially filed suit to prevent enforcement of the labor code, citing the law's inclusion of only those drivers and not all materials drivers unfairly subjects companies to AB 219's requirements.
Allied Concrete, et al. have until March 13 to submit a proposed form of final judgment and a permanent injunction order, which are expected to be signed by the district court. Once signed, AGC anticipates the State will file an appeal and seek a stay of the permanent injunction while the appeal is pending.
In the meantime, contractors are advised to continue to comply with the enacted requirements of AB 219 until otherwise advised. AGC will continue to track the progress of the issue and provide updates as information becomes available.
If you have any questions, please feel free to contact Kate Mergen at 626-608-5800.