Many contractors that perform work in San Jose, CA might be surprised to find out that prevailing wage requirements will apply to certain private projects fully or partially subsidized by the city. This expansion of prevailing wage laws was passed on June 25, 2019.   

The ordinance will most likely apply to numerous commercial and market-rate residential developments currently happening in the city. However, the regulation does include exceptions for several subsidized projects, including:

  • Some affordable housing projects
  • Instances where the city reduces or eliminates a fee for all projects within a certain land-use category
  • Projects that wouldn’t likely happen without a subsidy

The city is also reviewing the possibility of extending the current downtown high-rise building incentives. However, unions are concerned about the additional high-rise incentives getting approved without certain laws in place. Some regulations unions are pushing for include guidelines for prevailing wages, hiring locally, apprentice programs, and hiring disabled workers. Members of the council are expected to revisit the rulings on these laws by the end of August 2019.

Questions about compliance?

At eBacon, we make sure our clients and our services are always up to date on the latest laws that could affect employers. Reach out to us today for a free consultation to see how you can stay compliant and save money.