Understanding prevailing wage and overtime
For California public works projects, all work over eight hours per day and or 40 hours per week is considered overtime. Hours over 8 in a day should be paid at 1.5 times the rate of regular hours. Double time is required and due for work beyond 12 hours in a workday or eight hours on the seventh day of a work week.
For prevailing wage jobs or public work projects employers must pay the prevailing wage overtime rate as specified by the California Department of Industrial Relations (DIR) in the appropriate prevailing wage determination for each job classification. In some cases, work in excess of seven hours is considered overtime. Employers are responsible for understanding and paying the appropriate rate at all times.
Attorney William Donahoo discusses prevailing wage and overtime.
Types of Overtime
Overtime for weekends and holidays
California prevailing wage law requires that workers be paid overtime rates on weekends, regardless of the total hours worked for the week. These rates vary by classification and can be found in the DIR wage determinations.
Often the DIR specifies that Saturdays are 1.5 times regular pay (time and a half) and Sunday hours are double time regardless of other time worked during the week. Workers also may be entitled to overtime pay on recognized legal holidays. Not all holidays are recognized by all crafts. For a complete list of holidays recognized by the DIR check their web site.
Multiple shifts and overtime
When there are multiple shifts or odd working hours, employers may be required to pay shift differentials. The rules are based on the craft. Generally, shift work is paid a higher rate and overtime begins after 7 or 7.5 hours. Check the DIR web site for specific requirements by trade.
Multiple job classifications and overtime
Sometimes workers perform multiple duties that may be in different classifications. For example, a worker may perform six hours of work in the Insider Wireman’s classification and then two hours of work as a painter. The worker must be paid six hours at the Inside Wireman rate and two hours as a painter.
If the same worker puts in ten hours in one day, with five in the Insider Wireman’s classification and then five as a painter, the worker is due overtime pay. This pay must be calculated based on the rate for five hours of work as an Inside Wireman plus three hours at the standard painter rate AND two hours at the painter overtime rate. All rates are available through the DIR web site.
Multiple projects and prevailing wage overtime
Workers may be used on several job sites. Prevailing wage overtime must be calculated on the sum of all work for the day, regardless of the job site. For example, if the worker spends three hours at a private job site and then six hours at a public works project, the worker is due overtime. The overtime rate is determined by the job classification.
Prevailing Wage Overtime FAQs
When a worker is working on a public works project, they can be entitled to overtime pay if they work over 8 hours a day or over 40 hours a week or they work on Saturday and or Sunday.
The California Labor Code § 1815 outlines how to calculate overtime hours for work performed on public works projects. Any work over 8 hours per day, over 40 hours per week or work on Saturdays must be paid at not less than 1.5 times the basic rate of pay in addition to the fringe benefits amount required by the classification for the type of work performed (the fringe benefits can be paid in cash or benefits at the employer’s option)
If a worker is not paid the proper overtime rate, the employer can be subject to penalties.
Most Prevailing Wages have listed in the wage determination premium rates for hours worked on Saturday and Sunday. Generally, over 8 hours a day or 40 a week and Saturdays are paid at the overtime rate of 1.5 times the base rate plus the fringe benefits required. When a worker works over 12 hours per day or 60 in a week or Sundays, they are usually required to be paid 2 times the base rate plus the fringe benefits required.
Overtime wages are also often required to be paid for particular Holidays covered under each wage determination by the Department of Industrial Relations.
Also, there may be specific Overtime requirements that are different for a given determination. The general prevailing wage determination may require that overtime be paid for all hours worked over 7 hours in a day or 35 in a week. In any event prevailing wage overtime is determined ultimately by the general prevailing wage determination by the direction of the Department of Industrial Relations.
Overtime can be tricky when a worker works in different classifications over the course of a long shift, or they work on both private and public projects during a single day or single shift.
If you have questions and need answers, call the attorneys at Donahoo & Associates, they are on the right side of justice and should be able to help.
Qualifying for overtime under the prevailing wage law is very simple. Work on a public work project over 8 hours in a day, 40 hours in a week, or on Saturday, Sunday, or a holiday.
Overtime rates are usually calculated by multiplying the “base rate” of a prevailing wage rate for a specific classification by 1.5 or 2.0 and then adding the fringe benefit amount. The fringe benefit amount can be covered either in cash or benefits at the discretion of the employer, but it must be paid either way.
Many employers do not understand the difference between the base rate and the fringe benefit rate and how they are treated in calculating the total overtime rate for prevailing wages.
If you have questions and need answers, call the attorneys at Donahoo & Associates, they are on the right side of justice and should be able to help.
There are lots of ways an employer can try and get away with not paying prevailing wages overtime. Sometimes they will treat time on the project and time at the yard differently. But if that work is performed in same pay period or on the same day the hours must be combined and anything over 8 in a day or 40 in a week must be paid at an overtime rate.
Also, we have seen employers have workers work 4 days 10 hours a day per week. Commonly called “4 Tens”. This is not allowed on public works projects. If you are working 4 Tens in California on a public work project you are entitled to 2 hours per day of overtime work.
If you believe you are not being paid the proper overtime, contact a prevailing wage attorney at Donahoo & Associates and get on the right side of justice.
Yes, prevailing wage laws are different than federal overtime laws, and California overtime laws are different than prevailing wage laws, and California prevailing wage laws can be different than both federal overtime laws and California overtime laws. It can be complicated so if you have a question, get on the right side of justice by contacting an attorney at Donahoo & Associates.
Record your hours on prevailing wage jobs
It is extremely important to keep a record of your daily work times. Many prevailing wage claims benefit from this personal record of daily hours and work performed. Be sure to include any travel time, meal and rest breaks, hours worked, and work performed so it is easier to calculate overall compensation. Get our trial-tested tips on the best ways to record your hours.
Have you been missing your overtime pay?
Employers are required to pay overtime according to the prevailing wage determinations. Failure to comply can result in penalties, damages, accrued interest, legal fees and court costs.
If you were not properly compensated for overtime on a public works project, contact Donahoo & Associates, PC today for a free case evaluation.
