Sacramento, California — Tensions are rising in California’s Capitol as lawmakers, unions, and advocacy groups argue over a last-minute budget proposal that could change the minimum wage for residential construction projects.
A new provision would permit developers to pay below the prevailing wage for specific housing projects that bypass environmental review under CEQA—the California Environmental Quality Act. The goal is to speed up affordable housing development. The policy, supported by Gov. Gavin Newsom and pro-housing lawmakers, has caused backlash from major construction unions.
Key details of the proposed deal:
- It applies only to urban infill housing that is exempt from CEQA.
- Sets minimum hourly wages at:
- $40 for most Bay Area construction workers.
- $27 for less-skilled or entry-level workers.
- Small projects (25 units or fewer) are exempt.
- Prevailing wage in comparison: $99/hour for residential carpenters in Oakland.
- Grants unions legal power to sue over wage and tax violations.
Supporters argue the deal increases pay in a mostly non-union industry, while opponents label it a “wage grab.” The State Building and Construction Trades Council fiercely opposes the proposal, calling it a blow to long-fought labor protections.
Legislators were caught off guard by the bill’s sudden appearance in budget talks. “I didn’t come to Sacramento to cut people’s wages,” said Assemblymember Chris Rogers.
The bill’s vote remains uncertain after a Senate hearing delay.
If you believe your rights as a worker have been violated—whether related to wages or benefits—consult with our experienced employment lawyers in Sacramento. We offer free, confidential consultations to help you understand your options and protect your legal rights.
Stand up for fair pay—reach out to us today.
