CA AB889

Revokes all exemptions to annualization requirements for prevailing wage employer payment credits that were issued by the Director of Industrial Relations prior to January 1, 2026

Requires employers seeking credit for higher employer payments on public works projects than on private construction to calculate those credits on an annualized basis, with limited exceptions for project labor agreements, enforceable obligations, or California Apprenticeship Council payments

Allows employers to take full credit for contributions to defined contribution pension plans with immediate participation and vesting within 500 hours, even if they contribute less or nothing to private construction projects

Places the burden of proof on employers to demonstrate proper calculation of employer payment credits and requires them to produce payment records upon request by the Labor Commissioner

Authorizes the Labor Commissioner to deny employer credits for payments if the employer fails to produce sufficient records of employee hours and employer payments on private construction