Can Regents Ignore Wage Law ?

In Regents of University of California v. Aubry (1996) 42 Cal. App. 4th 579 [49 Cal. Rptr. 2d 703], the reviewing court held that the constitutional exemption from state regulation allowed the Regents to ignore the prevailing wage law ( Lab. Code, 1770 et seq.) with respect to private contractors building subsidized married, faculty and staff housing for the University. Relying on Labor Council, the Aubry court held that the Regents were free to "further its core educational function by not paying prevailing wages." (Aubry, supra, at p. 591.)