On March 28, 2017, the California Department of Industrial Relations (DIR) issued a news release regarding the judgment issued by the U.S. District Court for the Central District of California on March 14, 2017 in Allied Concrete, et al. v. Brown, et al. DIR has appealed the judgment and permanent injunction by the Court that blocks the enforcement of Code Section 1720.9 – Prevailing Wage Requirements for Ready-Mix Concrete Suppliers.
Several outcomes may result from these actions. DIR is seeking a stay of the permanent injunction which, if granted, would allow the Labor Commissioner to continue to enforce the law enacted by AB 219. If the stay is not granted, the law remains unenforceable during the appeal process. However, the potential still exists for the Ninth Circuit to overturn the judgment, ruling the statute is constitutional, which could result in significant liability to any company that did not to comply with Section 1720.9 while the litigation and appeal were pending.
Contractors are advised to continue to comply with the enacted requirements of AB219 until otherwise advised. If further counsel is required, we advise contractors obtain legal counsel for further information and recommendations. 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.
For background on the original ruling, click here.