What is a prevailing wage rate?
Contractors are required to pay the proper prevailing wage rate to those working on public works projects (projects built using public funds and/or public consideration).
California prevailing wage rates are set by the Director of Industrial Relations ("DIR"), which publishes semi-annual and annual bulletins detailing rates and classifications. Your exact prevailing wage is determined by the classification for the work you perform.
A few important items to keep in mind:
- Workers must be paid at or above the prevailing wage
- Prevailing Wage is the minimum wage for the project
- Overtime pay must follow DIR rules
- Workers must be paid for work performed according to DIR classifications
- Fringe benefits must be provided at or above the state requirement as part of the total prevailing wage rate or paid in cash to the worker
Check California prevailing wage rates
Prevailing wage rates and classifications are set through semi-annual and annual bulletins published by the Director of Industrial Relations (DIR).
Proper wage rates
The proper prevailing wage rate for the work performed in the State of California is considered the minimum wage payable on that project. It is the only legal wage that may be paid for work in execution of a public work contract. The current list of prevailing wage rate for the State of California can be found at State of California Prevailing Wage Rates.
Overtime and travel time
In addition to the required straight-time hourly rate of pay, the term 'prevailing wage' includes a designated rate for overtime and holiday work, travel time and subsistence pay (Cal. Code of Regulations § 16000). All such rates are published semi-annually by the California Department of Industrial Relations ("DIR") pursuant to pertinent California regulations.
Calculating prevailing wage rates
Need help calculating your prevailing wage rate? Talk to a prevailing wage expert.
For assistance in understanding if you are being paid the proper prevailing wage rate please contact Donahoo & Associates, PC for a confidential and personal consultation.
