California AB 1198 requires mid-project prevailing wage increases on public works contracts of $35 million or more
Key points
- AB 1198 was signed on September 27, 2026.
- Beginning July 1, 2027, mid-project prevailing wage changes apply to public works contracts with a prime contract value of $35 million or more.
- The law does not address who bears the cost of mid-project increases.
California Governor Gavin Newsom signed AB 1198 on September 27, 2026, amending Labor Code section 1773.6 and adding section 1773.65. Beginning July 1, 2027, prevailing wage changes will apply mid-project to public works contracts with an awarded prime contract value of $35 million or more; previously wages stayed fixed at bid-time rates. The law does not address who bears the cost. For reference only; not legal advice.
What employers should do
- If bidding on California public works projects, assess the cost impact of mid-project prevailing wage increases after July 1, 2027.
Policy details
- Jurisdiction
- California
- Status
- Signed, not yet effective
- Effective date
- 2027-07-01
- Employers covered
- Contractors and subcontractors on public works contracts with awarded prime contract value of $35 million or more
- Official source
- Official source pending
Original report: Littler Mendelson P.C. ↗Edited with AI assistance. Facts are based on official sources and original reports. For information only; not legal, immigration or insurance advice.