WHATS NEW?
DIR Expands Interpretation of Tree Removal
In a recent California DIR case, the DIR took the position that tree removal, when it was connected to a future construction project, would be classified as “construction” and not as “maintenance”. This changes the wage classifications from those listed under Tree Removal/ Maintenance to Laborers and triggers apprenticeship requirements as well as higher wage rates. There is still some question as to whether a stand alone contract for “Tree Removal” can trigger the “construction classification” as there is not tree trimming but only removal of trees.
DIR issues new wage determinations
The California Department of Industrial Relations just issued a new wage determination. California issues its determinations twice a year February 22 and August 22. If any of you have been on the DIR’s website in the last few days you will see that the determination for 2022 – 1 has not been listed. It was listed March 4th. Please note that the wage determination is effective 10 days after the issue date. If you look at the current determination it says the issue date was February 22 and that makes March 4th the 10th day. These rates (and the corresponding increases will apply to all projects which are advertised for bid from today through August 31. The determination issued August 22 becomes effective September 1. This is often confusing to contractors and agencies alike. Remember it is always the first bid advertisement date which triggers and locks in the applicable California prevailing wage rate.
