Tuesday, September 2, 2008

Additional Coverage of California's Prevailing Wage Law's Application to Nonprofits

Over the long weekend, I blogged about the looming expiration of a nonprofit volunteer exception to California's prevailing wage law.  That law requires any entity involved in a "public works" project to pay all workers the prevailing wage, including nonprofits that otherwise would use unpaid volunteer labor.  Today, the Los Angeles area Daily Breeze reports on one nonprofit that is concerned about the ramifications if the exception expires.  The Executive Director of the American River Parkway Foundation, which clears trash and debris from the public greenbelt in Sacramento, is worried that the broad definition of public works - essentially any project that receives public funding - would mean that their volunteer-based projects would have to end if the exception disappears.  A union official disputed this concern, arguing that the Governor has the authority to exempt volunteers from the reach of the prevailing wage law, but apparently the Governor's office disagrees. 

The latest news, according to the Foundation's website, is that the state legislature passed a three-year extension to the nonprofit volunteer exception, which now awaits the Governor's signature. 

LHM

http://lawprofessors.typepad.com/nonprofit/2008/09/additional-cove.html

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