Your Subdivision May Be a 'Public Work' Subject to Prevailing Wage LawsMaria Giardina
April 26, 2011 — 357 views
A recent appellate decision considered whether Mello-Roos financing constitutes "public financing" under the Labor Code such that the prevailing wage laws apply to a project receiving such financing and, if so, whether a safe harbor was available so the entire project was not subject to them. In Azuza Land Partners v. Department of Industrial Relations (2010) 191 Cal.App.4th 1, the court determined that an entire planned community was a "public work" because it received partial public funding to construct some of the public improvements required as a condition of approval. The obligation to pay prevailing wages, however, fell within an exemption in the statute so that only the public improvements were subject to prevailing wage laws, which included those that were to be privately funded.