The California Supreme Court has delivered a major legal victory for construction workers by declining to hear the appeal filed by Palm Springs Promenade LLC (formed by Grit Development). This denial upholds a state appeals court ruling that mandated prevailing wages must be paid to workers on the $194 million major downtown Palm Springs redevelopment project, overriding the city's attempt to use a local ordinance for exemption.
The decision is viewed as a definitive statement that any project involving public money requires fair compensation for labor. The developer is now required to pay potentially millions in back wages to the workers.
During the discussion, realtor Nick Collins expressed concern that the ruling, which forces developers to adhere to union-set prices, will "scare all the developers away," potentially halting new projects not only in Palm Springs but also in other Valley cities like Palm Desert. He suggested that if mandated wages are too high, the desert will cease development.
However, contributor Tammy Bleck strongly countered this view, asserting that developers should simply "pay a living wage" and "do the right thing" from the start, dismissing the developers' financial distress as "whining." She emphasized that fair compensation is necessary, and all businesses rely on their workers. Both contributors agreed that some form of negotiation or middle ground may be necessary to keep development moving forward while ensuring workers are justly paid.
By: NBC Palm Springs
December 3, 2025
