COMPLIANCE SPOTLIGHT: CALIFORNIA PREVAILING WAGE AND COVERED HAULING ACTIVITIES
Published date: 08/18/2026
Material deliveries are a routine part of public works construction, but their prevailing wage treatment is not always straightforward. In California, questions continue to arise regarding when drivers hauling paving, grading, and fill materials are performing covered public work.
We’re revisiting the state’s guidance to help contractors, trucking companies, material suppliers, and public agencies better understand what can affect coverage and which responsibilities may apply.
AB 1851 and On-Hauling Activities
California’s AB 1851 expanded the definition of public works under Labor Code § 1720.3 to include certain on-hauling activities. Effective January 1, 2023, truck drivers hauling materials used for paving, grading, and fill onto a public works site may be subject to prevailing wage requirements when their work is integrated into the flow process of construction. The Legislature stated that the amendment was intended to restore the holding of O. G. Sansone Co. v. Department of Transportation (1976) and its subsequent interpretations.
The California Department of Industrial Relations notes that there is no exhaustive list of paving, grading, and fill materials. Examples may include sand, gravel, crushed rock, coal, and bituminous paving materials. Ready-mixed concrete deliveries are governed by separate requirements under Labor Code § 1720.9.
Hauling activities that may warrant closer review include:
Deliveries connected to ongoing paving operations
Hauling materials into active grading operations
Delivering fill materials for use in the construction process
Coverage depends on the facts surrounding the work. Organizations should avoid assuming that every delivery to a public works site is automatically covered or excluded.
What Organizations Should Review
Contractors, trucking companies, material suppliers, and public agencies should consider:
Whether hauling activities are integrated into active construction
Prevailing wage obligations for truck drivers
Certified payroll reporting requirements
Contract language and compliance procedures related to trucking operations
A Key Coverage Question
A central question when reviewing these activities is: “Was the driver’s work integrated into the flow process of construction?”
Supporting records may help document what materials were delivered, when the work occurred, and how the hauling activity related to construction. Depending on the project, these records could include delivery tickets, dispatch records, timecards, project logs, or construction schedules.
Review Hauling Activities Early
Although material deliveries are common, their treatment under California prevailing wage law should not be treated as automatic. The materials involved, the project’s benchmark date (the date used to determine applicable prevailing wage rates), and the relationship between the driver’s work and the active construction process can all affect the analysis.
Because coverage depends on the specific facts of the work, organizations should review the official state guidance, evaluate hauling activities on a project-specific basis, and seek appropriate legal or compliance advice when questions remain.
Review the California Department of Industrial Relations FAQ on hauling under Labor Code Section 1720.3
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These materials are being issued with the understanding that LCPtracker is not engaged in rendering legal or other professional services and is providing these for informational purposes only. If legal, accounting, or tax expert assistance is required, the services of a competent legal, accounting or tax professional should be sought.
