By Connie Moorhead, Executive Director, WBFAA UATC & CEO of The CMOOR Group
If you’re a California contractor doing public works, there are some things you simply can’t afford to find out about after the fact.
AB 889 is one of them.
The law took effect January 1, 2026, and changes how certain fringe-benefit credits are calculated toward prevailing-wage obligations.
In plain English? The math changed.
And when the math affects payroll, labor costs, bidding, and compliance, contractors need to understand it.
Under AB 889, contractors must now annualize applicable fringe-benefit credits across public and private hours. Frontloading benefits onto public-works hours is no longer permitted, and DIR has revoked previous annualization exemptions.
Contractors also need to keep documentation and recordkeeping requirements on their radar.
This isn’t something to put in the I’ll get to it later pile.
This Is Why WBFAA Is Here
California contractors have enough to manage without tracking every new law, regulation, and compliance requirement on their own.
That’s part of WBFAA’s job.
When something changes that could affect how our members operate, pay their people, bid work, or stay compliant, we want to make sure they know about it and have the information they need to respond.
That’s why we’re hosting AB 889: What California Contractors Need to Know on September 10 at 1:00 PM PT.
We’ll break down what changed, what it means for contractors, and what companies should be reviewing now.
No need to become an expert in California Labor Code.
But you do need to know when the rules affecting your business change.
And WBFAA will keep working to make sure you do.
REGISTER FOR THE AB 889 WEBINAR
Not a WBFAA Member?
AB 889 is a good example of why membership matters.
WBFAA works year-round to keep California security and fire contractors informed about legislative and regulatory changes, prevailing-wage requirements, apprenticeship, training, certification, compliance, and other issues that affect their businesses.
Stay informed. Stay connected. Stay ahead.
