California Prevailing Wage Information
GENERAL INFORMATION
California’s prevailing wage laws ensure that the ability to get a public works contract is not based on paying lower wage rates than a competitor. All bidders are required to use the same wage rates when bidding on a public works project. California law requires that not less than the general prevailing rate of per diem wages be paid to all workers employed on a public works project.
“Public works” refers to construction, alteration, demolition, installation, or repair work (including maintenance) done under contract and paid by public funds. Public works projects do not include those done by a public agency with its own employees.
With minor exceptions, all workers employed on public works projects must be paid the prevailing wage determined by the Director of the Department of Industrial Relations according to the type of work and location.
The Director of DIR also makes coverage determinations, hears enforcement appeals, and oversees labor compliance programs, while the Labor Commissioner is responsible for all compliance monitoring, investigations, and enforcement.
How prevailing wage rates are determined
The prevailing wage rate is the basic hourly rate paid on public works projects to a majority of workers engaged in a particular craft, classification or type of work within the locality and in the nearest labor market area (if a majority of such workers are paid at a single rate). If there is no single rate paid to a majority, then the single or modal rate being paid to the greater number of workers is prevailing.
General Wage Determinations
Moreover, when the director of the California Department of Industrial Relations determines that the general prevailing rate of per diem wages for a particular craft, classification, or type of worker is uniform throughout an area, the director issues a determination enumerated county-by-county, but covering the entire area.
Special Wage Determinations
When a particular craft, classification or type of worker is not covered by a general determination, the awarding body may request a special prevailing wage determination. Requests must be made at least 45 days prior to the bid advertisement date.
Coverage Determinations
A process in which the awarding body or any other interested party (such as a contractor, employee, union or labor-management compliance organization) may request a written determination by the director of the DIR about a specific construction project or type of work to be performed.
THRESHOLD
Prevailing wages must be paid to all workers employed on a public works project when the public works project is over $1,000. If an awarding body elects to initiate and enforce a labor compliance program, that has been approved by the Director of the Department of Industrial Relations, for every public works project under the authority of the awarding body, prevailing wages are not required to be paid for any public works project of $25,000 or less when the project is for construction work, or for any public works project of $15,000 or less when the project is for alteration, demolition, repair, or maintenance work.
TIMING
General wage determinations are issued twice a year on February 22 and August 22. The issue date is the date upon which copies of the determination of the director are deposited in the mail. The expiration date on the determination indicates when the wage determination is subject to change. The effective date is the date upon which the determinations of the director of the CA DIR go into effect. This date is 10 days after the issue date of the determination.
Asterisks after expiration date
A single asterisk (“*”) after the expiration date, which are in effect on the date of advertisement for bids, remain in effect for the life of the project. Interested parties should contact the Office of the Director Research Unit at (415) 703-4774 for the new rates after 10 days from the expiration date (if no subsequent determination is required) or visit the CA DIR website.
A double asterisk (“**”) after the expiration date on the wage determination indicates that the basic hourly wage rate, overtime, holiday pay rates and employers’ payments for work performed after this date have been predetermined. If work is to extend past this date, the new rates must be paid and should be incorporated in contracts entered into now.
Pre-determined changes
A predetermined change is definite changes to the basic hourly wage rate, overtime, holiday pay rates and employer payments which are known and specified in the applicable collective bargaining agreement at the time of the bid advertisement date and which are referenced in the general prevailing rate of per diem wages.
OVERTIME
Compensation for all hours worked in excess of eight hours per day and 40 hours during any one week should be not less than one-and-one-half times the basic rate of pay. For specific overtime requirements, please refer to the prevailing wage determinations.
Please See, “Exceptions to the general overtime laws” under “Helpful Links” below for additional information on overtime laws.
WORKING ON WEEKENDS
According to California prevailing wage law, workers receive different wage rates for working on the weekends based on their trade classification. Please See, wage determinations to view weekend rates.
WORKING ON LEGAL HOLIDAYS
Under California prevailing wage law, workers receive different wage rates for working on legally recognized holidays.
All crafts recognize the following holidays:
1) New Years Day
2) Memorial Day
3) July 4th
4) Thanksgiving Day
5) Christmas
However, not all crafts recognize the following holidays:
1) Veterans Day
2) Martin Luther King Day
3) Day after Thanksgiving
For additional information regarding which trade receives payment for which holiday, please refer to wage determinations.
SHIFT DIFFERENTIALS
Under California prevailing wage law, various trade classifications have different wage rates for workers depending on the shift worked throughout the day (e.g., swing, graveyard, etc.). The rules regarding whether a shift differential applies are craft specific, thus some trades do not have shift differential payments. Generally, shift rates are higher payments than regular wage rate payments, and they require overtime to be paid at 7.0 or 7.5 hours. Please See, the DIR webpage to view shift rates and when shift rates are applicable: Prevailing Wage Shift Differential Determinations
FRINGE BENEFITS
Under California prevailing wage law, different trade classifications receive different fringe benefits. Please See, wage determinations for exact fringe benefit amount based on the trade classification.
TRAINING CONTRIBUTION
Training contributions are never paid to the employee on the paycheck and are always made to a third party trust fund or to the California Apprenticeship Council (Please See, section of Apprenticeship). There is a minor exception for a few selected crafts that are non-apprenticeable.
Training contributions must be made to an approved training program (i.e., a program approved by the DSA) or to the California Apprenticeship Council (CAC). If the contribution is made to an apprenticeship committee, then that contribution should be listed on a fringe benefit statement. Otherwise, a contractor making the training contribution to the CAC must use a CAC2 form. Training contributions are to be made monthly.
For contractors who may be using apprentice from an approved program, sometimes the program requires a higher training contribution than is listed on the prevailing wage determination. In those instances a contractor would pay the higher training rate for those apprenticeship hours, but would only pay the specified training amount for all journeyman hours.
There is no requirement in state law that specific forms be used for certified payrolls and fringe benefits as long as the same information is conveyed and certified under penalty of perjury. However, some Awarding Bodies are requiring, as a matter of contract, that only certain forms or electronic submission of certified payroll be used. If the contractor intends to send training contributions to the CAC, the CAC-2 form is required.
APPRENTICE REQUIREMENTS
The California Department of Industrial Relations, Division of Apprenticeship Standards (DAS), is responsible for administering California's apprenticeship law. The DAS also enforces the standards for wages, hours and working conditions for apprentices in apprenticeable crafts or trades and also publishes wage determinations for apprentice wages.
Apprenticeship rates vary by trade and county. For example, training rates in Northern California may be more or less than training rates in Southern California. Please See, the wage decision that is applicable to the project, to determine the appropriate training rates on the prevailing wage job.
Email to Additional Information on Apprentices
Email to Request a Copy of an Apprentice Wage Determination
Email to General Inquiries
DAS Headquarters
455 Golden Gate Aveneue, 9th Floor
San Francisco, CA 94102
Phone: 415-703-4920
Fax: 415-703-5477
Contact Information for DSA District Offices
TRAVEL & SUBSISTENCE
Pursuant to California prevailing wage law, some trade classifications require compensation for travel and subsistence. Please See, wage determinations to view what trade classifications compensate for travel and subsistence.
CONTRACTOR LICENSING
With a few exceptions, all businesses or individuals who work on any building, highway, road, parking facility, railroad, excavation, or other structure in California must be licensed by the California Contractors State License Board (CSLB) if the total cost of one or more contracts on the project is $500 or more.
California's Contractor Licensing Policy
To check whether a contractor is licensed in the State of California, please visit the following webpage: https://www2.cslb.ca.gov/OnlineServices/CheckLicenseII/CheckLicense.aspx
PENALTIES
Penalties for violation of prevailing wages are generally assessed even if the contractor corrects the wage error. For that reason, it is essential that a contractor understands and complies with prevailing wage requirements throughout the project.
Wage Regulations
Pursuant to Labor Code 1775, for each day a worker is paid less than the correct prevailing wage rate, a violation exists and a penalty of $50 per day per worker is generally assessed. The DIR and an Awarding Body operating a Labor Compliance Program have some discretion to reduce penalties for good faith minor mistakes and first time violations. Reasons for reduction of penalties must be documented and approved by the DIR. The only basis for a reduction in wage penalty is if: 1) the error was a good faith mistake; 2) which was corrected promptly; 3) there are no further violations on the project.
Overtime Violations
Under Labor Code Section 1813, failure to pay proper overtime mandates a penalty of $25 per day per worker. This penalty is mandated by statute with no discretion for reduction. Even if certain union agreements allow employees to work four days at ten hours each day without overtime, the prevailing wage determination controls. Overtime pay on prevailing wage projects is mandated after 8 hours worked in a day (overtime mandated after 7 or 7.5 hours with shift work).
Failure to Provide Certified Payrolls
Pursuant to Labor Code Section 1776(g), the contractor has 10 days to deliver all documents when certified payrolls and related documents are requested by the DIR or Awarding Agency. While the statute says ten days (generally ten calendar days), the DIR routinely grants ten business days. However, this request should not be ignored or assumed that a few more days will not matter. The DIR and several Awarding Agencies do strictly enforce this provision. Please note that the fine may be imposed even if there is ultimately no wage violation.
Apprenticeship Violation
Under Labor Code Section 17777.7, failure to file a DAS-140 subjects the contractor to a penalty of $100 for each day work is performed on the project. The DAS is currently taking the position that if a contractor fails to file a timely DAS-140, but still employs apprentices on the project, then the intent of the law has been met and no penalties will be imposed for the failure to file the DAS-140. The penalty for failure to request apprentices (DAS-142) is $100 for each day of work performed on the project. The penalty for failure to make training contributions on a project is $100 for each day work was performed on the project.
Willful/Repeat Offenders
Contractors that are repeat offenders or that intentionally under report hours and employees on the certified payrolls will be assessed maximum monetary penalties and are also subject to debarment from public works. Debarment can be sought by either the DLSE or the DAS and range from one to three years per violation. Contractors who engage in receiving "kickbacks" or committed perjury on the Certified Payrolls may be subject to criminal prosecution as well.
Liquidated Damages
If prevailing wages remain unpaid for 60 days after a “Notice to Withhold” or “Notice of Intent to Withhold” is issued to the contractor, the contractor shall be assessed liquidated damages equal to the amount of any unpaid wages.
If a contractor “posts in escrow” the amount of wages and penalties due with the DIR within 60 days of a Notice to Withhold and appeals the wage decision within that time, then liquidated damages may be avoided.
DEBARMENT
Please visit the cite listed below for a list of contractors that are currently barred from bidding on, accepting, or performing any public works contracts, either as a contractor or subcontractor, for the period set forth on this webpage: http://www.dir.ca.gov/dlse/debar.html
For a list of past DLSE debarments of public works contractors, please contact:
Susan Nakagama
Special Assistant to the Labor Commissioner
455 Golden Gate Ave., 9th Flr.
San Francisco, CA 94102
Phone: 415-703-4810
Email: [email protected]
Federal debarment list at the Excluded Parties List System: http://www.dol.gov/ofccp/regs/compliance/preaward/debarlst.htm
HELPFUL LINKS
California DIR public works homepage
2015 California prevailing wage laws
California prevailing wage regulations
2015 general prevailing wage determinations
2015 general prevailing wage determinations—apprentice
Superseded prevailing wage determinations
Residential prevailing wage determinations
Prevailing wage determinations—Important Notices 2015
Contractor debarment list
Contractor registration law
Contractor registration
Contractor registration seminar
Awarding body—electrical certified payrolls
Important information for awarding bodies
Contractor—electrical certified payrolls
Public works projects registration
Public works manual (March 25, 1997)
Fact Sheet
FAQ regarding prevailing wages
FAQ regarding off-site hauling
CONTACT INFORMATION
Prevailing Wage Unit
Phone: (415) 703-4774
View Contact List for DIR: Department of Industrial Relations
California’s prevailing wage laws ensure that the ability to get a public works contract is not based on paying lower wage rates than a competitor. All bidders are required to use the same wage rates when bidding on a public works project. California law requires that not less than the general prevailing rate of per diem wages be paid to all workers employed on a public works project.
“Public works” refers to construction, alteration, demolition, installation, or repair work (including maintenance) done under contract and paid by public funds. Public works projects do not include those done by a public agency with its own employees.
With minor exceptions, all workers employed on public works projects must be paid the prevailing wage determined by the Director of the Department of Industrial Relations according to the type of work and location.
The Director of DIR also makes coverage determinations, hears enforcement appeals, and oversees labor compliance programs, while the Labor Commissioner is responsible for all compliance monitoring, investigations, and enforcement.
How prevailing wage rates are determined
The prevailing wage rate is the basic hourly rate paid on public works projects to a majority of workers engaged in a particular craft, classification or type of work within the locality and in the nearest labor market area (if a majority of such workers are paid at a single rate). If there is no single rate paid to a majority, then the single or modal rate being paid to the greater number of workers is prevailing.
General Wage Determinations
Moreover, when the director of the California Department of Industrial Relations determines that the general prevailing rate of per diem wages for a particular craft, classification, or type of worker is uniform throughout an area, the director issues a determination enumerated county-by-county, but covering the entire area.
Special Wage Determinations
When a particular craft, classification or type of worker is not covered by a general determination, the awarding body may request a special prevailing wage determination. Requests must be made at least 45 days prior to the bid advertisement date.
Coverage Determinations
A process in which the awarding body or any other interested party (such as a contractor, employee, union or labor-management compliance organization) may request a written determination by the director of the DIR about a specific construction project or type of work to be performed.
THRESHOLD
Prevailing wages must be paid to all workers employed on a public works project when the public works project is over $1,000. If an awarding body elects to initiate and enforce a labor compliance program, that has been approved by the Director of the Department of Industrial Relations, for every public works project under the authority of the awarding body, prevailing wages are not required to be paid for any public works project of $25,000 or less when the project is for construction work, or for any public works project of $15,000 or less when the project is for alteration, demolition, repair, or maintenance work.
TIMING
General wage determinations are issued twice a year on February 22 and August 22. The issue date is the date upon which copies of the determination of the director are deposited in the mail. The expiration date on the determination indicates when the wage determination is subject to change. The effective date is the date upon which the determinations of the director of the CA DIR go into effect. This date is 10 days after the issue date of the determination.
Asterisks after expiration date
A single asterisk (“*”) after the expiration date, which are in effect on the date of advertisement for bids, remain in effect for the life of the project. Interested parties should contact the Office of the Director Research Unit at (415) 703-4774 for the new rates after 10 days from the expiration date (if no subsequent determination is required) or visit the CA DIR website.
A double asterisk (“**”) after the expiration date on the wage determination indicates that the basic hourly wage rate, overtime, holiday pay rates and employers’ payments for work performed after this date have been predetermined. If work is to extend past this date, the new rates must be paid and should be incorporated in contracts entered into now.
Pre-determined changes
A predetermined change is definite changes to the basic hourly wage rate, overtime, holiday pay rates and employer payments which are known and specified in the applicable collective bargaining agreement at the time of the bid advertisement date and which are referenced in the general prevailing rate of per diem wages.
OVERTIME
Compensation for all hours worked in excess of eight hours per day and 40 hours during any one week should be not less than one-and-one-half times the basic rate of pay. For specific overtime requirements, please refer to the prevailing wage determinations.
Please See, “Exceptions to the general overtime laws” under “Helpful Links” below for additional information on overtime laws.
WORKING ON WEEKENDS
According to California prevailing wage law, workers receive different wage rates for working on the weekends based on their trade classification. Please See, wage determinations to view weekend rates.
WORKING ON LEGAL HOLIDAYS
Under California prevailing wage law, workers receive different wage rates for working on legally recognized holidays.
All crafts recognize the following holidays:
1) New Years Day
2) Memorial Day
3) July 4th
4) Thanksgiving Day
5) Christmas
However, not all crafts recognize the following holidays:
1) Veterans Day
2) Martin Luther King Day
3) Day after Thanksgiving
For additional information regarding which trade receives payment for which holiday, please refer to wage determinations.
SHIFT DIFFERENTIALS
Under California prevailing wage law, various trade classifications have different wage rates for workers depending on the shift worked throughout the day (e.g., swing, graveyard, etc.). The rules regarding whether a shift differential applies are craft specific, thus some trades do not have shift differential payments. Generally, shift rates are higher payments than regular wage rate payments, and they require overtime to be paid at 7.0 or 7.5 hours. Please See, the DIR webpage to view shift rates and when shift rates are applicable: Prevailing Wage Shift Differential Determinations
FRINGE BENEFITS
Under California prevailing wage law, different trade classifications receive different fringe benefits. Please See, wage determinations for exact fringe benefit amount based on the trade classification.
TRAINING CONTRIBUTION
Training contributions are never paid to the employee on the paycheck and are always made to a third party trust fund or to the California Apprenticeship Council (Please See, section of Apprenticeship). There is a minor exception for a few selected crafts that are non-apprenticeable.
Training contributions must be made to an approved training program (i.e., a program approved by the DSA) or to the California Apprenticeship Council (CAC). If the contribution is made to an apprenticeship committee, then that contribution should be listed on a fringe benefit statement. Otherwise, a contractor making the training contribution to the CAC must use a CAC2 form. Training contributions are to be made monthly.
For contractors who may be using apprentice from an approved program, sometimes the program requires a higher training contribution than is listed on the prevailing wage determination. In those instances a contractor would pay the higher training rate for those apprenticeship hours, but would only pay the specified training amount for all journeyman hours.
There is no requirement in state law that specific forms be used for certified payrolls and fringe benefits as long as the same information is conveyed and certified under penalty of perjury. However, some Awarding Bodies are requiring, as a matter of contract, that only certain forms or electronic submission of certified payroll be used. If the contractor intends to send training contributions to the CAC, the CAC-2 form is required.
APPRENTICE REQUIREMENTS
The California Department of Industrial Relations, Division of Apprenticeship Standards (DAS), is responsible for administering California's apprenticeship law. The DAS also enforces the standards for wages, hours and working conditions for apprentices in apprenticeable crafts or trades and also publishes wage determinations for apprentice wages.
Apprenticeship rates vary by trade and county. For example, training rates in Northern California may be more or less than training rates in Southern California. Please See, the wage decision that is applicable to the project, to determine the appropriate training rates on the prevailing wage job.
Email to Additional Information on Apprentices
Email to Request a Copy of an Apprentice Wage Determination
Email to General Inquiries
DAS Headquarters
455 Golden Gate Aveneue, 9th Floor
San Francisco, CA 94102
Phone: 415-703-4920
Fax: 415-703-5477
Contact Information for DSA District Offices
TRAVEL & SUBSISTENCE
Pursuant to California prevailing wage law, some trade classifications require compensation for travel and subsistence. Please See, wage determinations to view what trade classifications compensate for travel and subsistence.
CONTRACTOR LICENSING
With a few exceptions, all businesses or individuals who work on any building, highway, road, parking facility, railroad, excavation, or other structure in California must be licensed by the California Contractors State License Board (CSLB) if the total cost of one or more contracts on the project is $500 or more.
California's Contractor Licensing Policy
To check whether a contractor is licensed in the State of California, please visit the following webpage: https://www2.cslb.ca.gov/OnlineServices/CheckLicenseII/CheckLicense.aspx
PENALTIES
Penalties for violation of prevailing wages are generally assessed even if the contractor corrects the wage error. For that reason, it is essential that a contractor understands and complies with prevailing wage requirements throughout the project.
Wage Regulations
Pursuant to Labor Code 1775, for each day a worker is paid less than the correct prevailing wage rate, a violation exists and a penalty of $50 per day per worker is generally assessed. The DIR and an Awarding Body operating a Labor Compliance Program have some discretion to reduce penalties for good faith minor mistakes and first time violations. Reasons for reduction of penalties must be documented and approved by the DIR. The only basis for a reduction in wage penalty is if: 1) the error was a good faith mistake; 2) which was corrected promptly; 3) there are no further violations on the project.
Overtime Violations
Under Labor Code Section 1813, failure to pay proper overtime mandates a penalty of $25 per day per worker. This penalty is mandated by statute with no discretion for reduction. Even if certain union agreements allow employees to work four days at ten hours each day without overtime, the prevailing wage determination controls. Overtime pay on prevailing wage projects is mandated after 8 hours worked in a day (overtime mandated after 7 or 7.5 hours with shift work).
Failure to Provide Certified Payrolls
Pursuant to Labor Code Section 1776(g), the contractor has 10 days to deliver all documents when certified payrolls and related documents are requested by the DIR or Awarding Agency. While the statute says ten days (generally ten calendar days), the DIR routinely grants ten business days. However, this request should not be ignored or assumed that a few more days will not matter. The DIR and several Awarding Agencies do strictly enforce this provision. Please note that the fine may be imposed even if there is ultimately no wage violation.
Apprenticeship Violation
Under Labor Code Section 17777.7, failure to file a DAS-140 subjects the contractor to a penalty of $100 for each day work is performed on the project. The DAS is currently taking the position that if a contractor fails to file a timely DAS-140, but still employs apprentices on the project, then the intent of the law has been met and no penalties will be imposed for the failure to file the DAS-140. The penalty for failure to request apprentices (DAS-142) is $100 for each day of work performed on the project. The penalty for failure to make training contributions on a project is $100 for each day work was performed on the project.
Willful/Repeat Offenders
Contractors that are repeat offenders or that intentionally under report hours and employees on the certified payrolls will be assessed maximum monetary penalties and are also subject to debarment from public works. Debarment can be sought by either the DLSE or the DAS and range from one to three years per violation. Contractors who engage in receiving "kickbacks" or committed perjury on the Certified Payrolls may be subject to criminal prosecution as well.
Liquidated Damages
If prevailing wages remain unpaid for 60 days after a “Notice to Withhold” or “Notice of Intent to Withhold” is issued to the contractor, the contractor shall be assessed liquidated damages equal to the amount of any unpaid wages.
If a contractor “posts in escrow” the amount of wages and penalties due with the DIR within 60 days of a Notice to Withhold and appeals the wage decision within that time, then liquidated damages may be avoided.
DEBARMENT
Please visit the cite listed below for a list of contractors that are currently barred from bidding on, accepting, or performing any public works contracts, either as a contractor or subcontractor, for the period set forth on this webpage: http://www.dir.ca.gov/dlse/debar.html
For a list of past DLSE debarments of public works contractors, please contact:
Susan Nakagama
Special Assistant to the Labor Commissioner
455 Golden Gate Ave., 9th Flr.
San Francisco, CA 94102
Phone: 415-703-4810
Email: [email protected]
Federal debarment list at the Excluded Parties List System: http://www.dol.gov/ofccp/regs/compliance/preaward/debarlst.htm
HELPFUL LINKS
California DIR public works homepage
2015 California prevailing wage laws
California prevailing wage regulations
2015 general prevailing wage determinations
2015 general prevailing wage determinations—apprentice
Superseded prevailing wage determinations
Residential prevailing wage determinations
Prevailing wage determinations—Important Notices 2015
Contractor debarment list
Contractor registration law
Contractor registration
Contractor registration seminar
Awarding body—electrical certified payrolls
Important information for awarding bodies
Contractor—electrical certified payrolls
Public works projects registration
Public works manual (March 25, 1997)
Fact Sheet
FAQ regarding prevailing wages
FAQ regarding off-site hauling
CONTACT INFORMATION
Prevailing Wage Unit
Phone: (415) 703-4774
View Contact List for DIR: Department of Industrial Relations
