Assembly Bill 889 Is Here. Make Sure Your Business Is Ready.
California’s prevailing wage rules have changed, and if your fire or security company performs public works, Assembly Bill 889 (AB 889) could directly affect your payroll calculations, labor costs, and compliance requirements.
Effective January 1, 2026, AB 889 changes how contractors calculate fringe-benefit credits toward prevailing wage obligations and increases the importance of accurate documentation and reporting.
WBFAA is here to help you understand what changed and what you need to do next.
Members and non-members welcome.
What Changed Under AB 889?
For contractors performing public works in California, three changes are especially important:
Fringe benefits must be annualized.
Employer-paid fringe benefits used toward prevailing wage obligations generally must be calculated across total hours worked, public and private.
Frontloading is no longer allowed.
Contractors can no longer concentrate a full year of benefit contributions against public-works hours to increase the hourly fringe credit.
Previous DIR annualization exemptions are revoked.
Prior exemption letters issued before January 1, 2026 can no longer be relied upon.
The law also puts greater responsibility on employers to maintain records supporting their calculations.
Why does that matter?
If your annualized fringe credit is lower than the required prevailing-wage fringe rate, your company may need to make up the difference in cash wages.
Incorrect calculations can also create exposure to back wages, penalties, audits, and other compliance issues.
Join WBFAA for an AB 889 Webinar
What California Fire & Security Contractors Need to Know
AB 889 can be complicated. Our goal is to make it practical.
Join WBFAA as we break down the changes and discuss what they mean for companies performing public works in California.
We’ll Cover:
- How AB 889 changes fringe-benefit calculations
- What annualization means in real-world payroll terms
- The end of frontloading and previous DIR exemptions
- Documentation and recordkeeping expectations
- Considerations involving apprenticeship and training contributions
- Steps contractors should be taking now
Staying Compliant Shouldn’t Mean Figuring It Out Alone.
AB 889 is one example of how quickly California requirements can change.
WBFAA helps California fire and security companies stay informed, trained, and prepared with legislative and compliance updates, apprenticeship support, continuing education, workforce resources and tools designed specifically for our industry.
WBFAA members have access to resources including:
- Legislative and prevailing-wage updates
- Direct compliance and program support
- WBFAA’s state and federally approved apprenticeship program
- CALeFORMS and compliance tools
- Technician certification and continuing-education management
- Recruiting and workforce resources
- A statewide network of fire and security companies
Don’t Just Learn About AB 889. Stay Ahead of What Comes Next.
WBFAA membership is available to companies belonging to CAA or CAFAA. Not yet affiliated? Contact WBFAA to learn how to get started.