We get asked (a lot!) how to calculate the correct overtime pay rate for California Prevailing Wage jobs; and, to be completely honest, if you’re having trouble, there’s one very simple explanation… it’s nearly impossible to simply explain, in a blog post, exactly how prevailing wage overtime rates are calculated… And here’s the reason why… because the rules are complicated, confusing and inconsistent.
To illustrate our point, let’s start with what the rule books say.
The California Prevailing Wage manual indicates in section 3.4.7 that “workers must be paid the applicable overtime rate set forth in the wage determination. This includes the requirement that any overtime performed under the public works contract must be compensated at the overtime rate required by the prevailing wage determination in effect on that project for the craft.” Seems simple enough right?
Now, let’s look at a nice easy example.
How about determining CA Prevailing Wage overtime rates for Electrical Workers in Santa Barbara County. According to the footnotes in STB-2011-2 (Electrician – Santa Barbara County – STB-2011-2), a Comm & System Installer’s overtime rate is notated in the footnotes as “rate applies to the first 4 daily overtime hours and the first 12 hours worked on Saturday; all other time is paid at the Sunday and holiday overtime hourly rate.” Which is fine if you’re electrical worker is a Comm & System Installer. But, if you happen to be employing an Inside Wireman, then you calculate his/her Prevailing Wage overtime rate (as notated in the footnotes) as “rate applies to the first 2 daily and the first 8 Saturday hours worked. All other time is paid at the Sunday rate.” Which is to say that how the employer calculates the overtime is dependent upon the classification of the prevailing wage employee! Same trade. Same county. Different rules
Let’s look at another example.
This time let’s look at the Carpentry trade for Southern California (Carpenter – Southern California – SC-23-31-2-2011-2). The footnotes notate the “first eight (8) hours worked paid at 1 ½ times the straight time rate, all hours after that paid at double (2x) the straight time rate. Saturdays in the same work week may be worked at straight time rates if a job is shut down during the normal work week due to inclement weather, major mechanical breakdown or lack of materials beyond control of the employer.” Which seems clear until you read what follows, which (as indicated on the Saturday overtime rate), “All overtime worked Mon – Fri shall be paid at 1 ½ times the straight time rate for the first four (4) hours and double (2x) the straight time for work performed after twelve (12) hours.” Which makes us scratch our heads and ask – well, so, Saturday overtime pay is different than mid-week overtime pay but only if there wasn’t an approved reason that the job was shut down in which case there’s no overtime pay due… Right?!
Honestly, we have a LOT more examples – but we’ll save those for another post… or ten!
Bottom line – if you are having trouble determining the correct Prevailing Wage overtime pay rate and you think you may be doing it wrong… Know that you’re not crazy. You’re not doing something wrong. The rules are confusing. And we can help.