9th Circuit Closes the Door on “Open Shop” Contractor

Door key in lock

The 9th Circuit’s decision may well be the death knell for challenges to SB 954.

September 4, 2018
Garret Murai - California Construction Law Blog

At the height of the Great Depression nearly one-quarter of Americans were unemployed. In response, Congress enacted a series of laws including the Smoot-Hawley Tariffs Act, which raised tariffs on foreign goods in an effort to spur domestic investment and to increase the number of jobs. Sound familiar?

Background
The Davis-Bacon Act

Among the new laws enacted by Congress was the Davis-Bacon Act which required contractors on federal works projects to pay their workers the wages prevailing in the area where a project was located, also known as “prevailing wages,” in an effort to stem the practice of employers bringing in lower-wage workers from outside the area. The same year that the Davis-Bacon Act was enacted, California enacted its own prevailing wage law modeled after the Davis-Bacon Act and applicable to state and local public works projects.

Mr. Murai may be contacted at gmurai@wendel.com



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