CA AB2677

Allows increased employer payment contributions to result in lower hourly straight time or overtime wages without violating prevailing wage requirements, provided the contributions are made under a collective bargaining agreement and combined with wages meet the general prevailing rate.

Requires that increased employer payment contributions meet three conditions: made pursuant to collective bargaining agreement criteria, combined basic hourly rate and employer payment equal or exceed the general prevailing rate, and the employer payment is irrevocable unless made in error.

Permits increased employer payment contributions to result in lower taxable wages without violating prevailing wage determinations if the contributions are made under a collective bargaining agreement, combined with wages meet the general prevailing rate, and are irrevocable unless made in error.

Maintains existing requirement that employer payments cannot reduce the obligation to pay prevailing hourly straight time or overtime wages, except as provided by the new exceptions in this bill.

Requires annualization of employer payment credits when comparing public works projects to private construction, unless the employer has enforceable obligations on private work, a project labor agreement applies, or the director determines annualization would not serve prevailing wage purposes.