ASSEMBLY BILL 1851
CALIFORNIA LABOR CODE, SECTION 1720.3(a)(2)
In 2021, the California State Supreme Court overruled long-standing precedent of O. G. Sansone Co. v. Department of Transportation (1976) 55 Cal.App.3d 434, and its subsequent interpretations, as it relates to the on hauling of materials used for paving, grading, and fill onto a public works site. In 2022, the California Legislature passed AB 1851 to restore the holding of O.G. Sansone and its subsequent interpretations as related to the on hauling of materials used for paving, grading, and fill onto a public works site.
DIR guidance has identified several factors to determine whether an individual driver’s work is “integrated into the flow process of construction.” Whether an individual driver’s work is integrated in the flow process of construction will be based on the totality of circumstances and is a fact specific question. The accepted three-prong test to determine whether a material supplier is exempted from prevailing wage requirements include the following:
(1) The material supplier must be selling supplies to the general public;
(2) The plant must not be established for the particular contract; and
(3) The plant is not located at the site of the work.
The DIR has previously issued determinations that distinguish hauling completely from a material supplier from hauling performed as part of the public work; deciding that only if the driver leaves the pure hauling role and participates in the on-site construction activity to incorporate the material hauled would they be subject to prevailing wages.
Holliday Rock is a supplier responsible for hauling and delivering paving, grading, and fill material; however, our services are not integrated into the flow process of construction and our drivers spend a de minimis amount of time on jobsites.
Please contact your Holliday Rock Sales Representative if you have any questions about the application of Labor Code 1720.3 / AB 1851 to your project.