California Supreme Court Rules That State’s Prevailing Wage Law Is Not Quite So Prevailing: Charter Cities Need Not Require Prevailing Wages on Publicly Funded Municipal Construction Projects

On July 2, 2012, the California Supreme Court issued its long-awaited decision in State Building and Constructions Trades Councils of California, AFL – CIO v. City of Vista, No. S173586. The court held that locally funded public works projects performed by chartered cities are municipal affairs under the California Constitution and, as a result, the wages paid to workers on charter city projects are not subject to California’s prevailing wage law. While this decision resolves the issue as to whether the municipal affairs or “Home Rule” doctrine can be used by charter cities to avoid the application of the state’s prevailing wage law, interested parties will seek to explore the boundaries of the ruling.