A Guide to California Prevailing Wage Laws: What Employees Need to Know
As an employee working on public works projects in California, it’s crucial to understand your rights under prevailing wage laws. These laws ensure you receive fair compensation for your work, including wages and fringe benefits. This guide will break down the key aspects of California’s prevailing wage laws that every employee should know.
What Are Prevailing Wages?
Prevailing wages are the minimum hourly rates, including fringe benefits, that you must be paid when working on public works projects in California. These rates are typically higher than the standard minimum wage and are set based on the wages paid to workers in similar jobs in your area. [1] An employer or union may provide fringe benefits, or an equivalent amount may be paid as part of the hourly rate.
Legal Framework
Your rights to prevailing wages are protected by the California Labor Code, specifically sections 1720-1861. These laws apply to all workers employed on public works projects that cost more than $1,000. [2]
Your Rights as an Employee
When working on a prevailing wage project in California, you have the right to:
- Receive at least the prevailing wage rate for your trade and locality.
- Be paid for all hours worked, including overtime at the required rate.
- Receive fringe benefits as part of your compensation package.
- See the applicable wage schedule posted at your job site.
- Access your employer’s certified payroll records upon request. [3]
How Prevailing Wage Rates Are Determined
Your prevailing wage rate depends on several factors, and understanding how these rates are set can help you ensure you’re being paid correctly.
Factors That Determine Your Rate
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. Your specific rate depends on:
- Your trade or occupation: Each craft and classification has its own prevailing wage rate, from carpenters and electricians to laborers and operating engineers.
- The county or locality where you’re working: Rates vary by geographic region to reflect local labor market conditions.
- The type of project: Projects are categorized as either:
- commercial (non-residential construction, including residential projects over four stories) or
- residential (single-family homes and apartments up to and including four stories). [2]
How Prevailing Wage Rates Are Set
The Director of the Department of Industrial Relations (DIR) determines prevailing wage rates based on rates specified in collective bargaining agreements.
California uses a modal rate system, meaning the rate paid to the greatest number of workers in a particular craft becomes the prevailing wage for that craft in that area.
General vs. Special Determinations
There are two types of prevailing wage determinations:
- General Determinations are issued twice a year on February 22nd and August 22nd, and they go into effect ten days thereafter (March 3rd or 4th for February determinations, and September 1st for August determinations). [5] These determinations cover the most common crafts and classifications across California.
- Special Determinations are requested when a particular craft, classification, or type of worker is not covered by a general determination. The awarding body may request a special determination at least 45 days prior to the bid advertisement date. [2]
How to Find Your Applicable Prevailing Wage Rate
To locate your specific prevailing wage rate, follow this six-step process on the DIR’s prevailing wage determinations page:
- Step One: Statewide – First check if your craft’s determination is among the basic trades that apply to most counties in California.
- Step Two (A): Northern California – If not found in step one, check if your craft is one of Northern California’s basic trades.
- Step Two (B): Southern California – If not found in step one, check if your craft is one of Southern California’s basic trades.
- Step Three: San Diego County – If your project is in San Diego County, examine this area after following steps one and two (B).
- Step Four: County Determinations (Subtrades) – If you haven’t found your craft yet, choose the county where work is being performed to examine the subtrades.
- Step Five: Shift Differential Pay – Check if your classification has a shift differential pay determination for the county where you’re working.
If you cannot find your job classification in the DIR’s general prevailing wage determinations, contact an attorney experienced in California prevailing wages.
How to Verify You’re Being Paid Correctly
Sometimes it can be difficult to know if your employer is paying proper wages. To ascertain this, read our guide 7 Signs Your Employer Isn’t Following Prevailing Wage Laws. To summarize, to ensure you’re receiving correct wages:
- Check the posted wage schedule at your job site.
- Compare your pay stub to the prevailing wage rates for your trade and location. You can look up the rates on the DIR’s website. [5]
- Keep records of your hours worked.
- Ask your employer for a copy of the certified payroll records if you have concerns. [3]
What to Do If You’re Not Receiving Proper Wages
If you believe you’re not being paid the correct prevailing wage:
- First, talk to your employer. Sometimes, errors can be resolved quickly and amicably.
- If the issue persists, set up a consultation with a California prevailing wage attorney.
- Prepare for your meeting to maximize your time with the attorney by following our guide on how to prepare for your meeting with an employment attorney about unpaid prevailing wages.
Protection Against Retaliation
It’s important to know that it’s illegal for your employer to retaliate against you for:
- Asking about your prevailing wage rights
- Filing a complaint about prevailing wage violations
- Cooperating with an investigation into prevailing wage violations
If you face retaliation, you have the right to file a complaint. California Labor Code section 1102.5, also known as the Whistleblower Protection Act, is a very powerful law that reflects the state’s broad public policy of encouraging employees to report illegal activity by their employers. [6]
Apprenticeship Requirements
All public works contracts valued at $30,000 or more carry an obligation to hire apprentices, unless the craft or trade does not require the use of apprentices, as indicated in the corresponding prevailing wage determination. This duty applies to all contractors and subcontractors on a project, even if their part of the project is less than $30,000. [7]
Conclusion
Understanding your rights under California’s prevailing wage laws empowers you to ensure you’re being paid fairly for your work on public projects. By staying informed about the applicable rates, keeping good records, and knowing how to address potential issues, you can protect your rights and secure the compensation you’ve earned.
Remember, these laws exist to protect you and ensure fair compensation for your valuable work. If you have doubts or concerns about your pay on a public works project, don’t hesitate to seek clarification or assistance from professionals who can help. Contact our California office for a free consultation about prevailing wages in California.
References
[1] Prevailing Wage – California Department of Industrial Relations
[2] Frequently Asked Questions – Prevailing Wage
[4] Director’s General Prevailing Wage Determinations
[5] 2025-2 general prevailing wage journeyman determinations