California Prevailing Wage

Some of you may remember that we posted a blog a few months ago that talked about a confusing aspect of California’s Prevailing Wage Overtime pay rules –  and in that post we told you that there would be some other fun examples of why being a prevailing wage contractor can be so challenging! Well, here you go!

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.

If you're a California Prevailing Wage contractor, or thinking of becoming one, we strongly suggest you take a look at the DLSE's website - and, in particular, you should absolutely have a copy of their Public Works Manual.

In previous blog posts, we’ve talked about the critical importance of the Bid Advertisement Date when determining your job’s California prevailing wage rate. And we’ve talked about the significance of superseded prevailing wage decisons. So, we thought it made sense to touch on the “Important Notices” section of the DIR website.

For all you California Prevailing Wage contractors out there, we just received this alert from the AGC, regarding the implications of California's ongoing budget crisis for contractors working on public works projects. If you're doing a prevailing wage project here in California, then this is something you definitely need to be on top of!

One of the most common questions we get asked about prevailing wage construction is how to make an accurate prevailing wage rate determination; or, stated differently, how do you know if you’re using the correct wage decision? Honestly, given how crucial this little detail is, it’s amazing how misunderstood this is given that paying the correct prevailing wage rate is no trivial matter! If you’re using the wrong prevailing wage calculations, it means you’re either over or underpaying your employees.

Just in time for the 4th of July holiday, a little light and fluffy for our Davis Bacon and prevailing wage friends! We hope you'll get a laugh. We did!

10. Complicated Davis-Bacon act wage determinations give purpose to childhood secret decoder rings

9. That warm fuzzy feeling you get after filing your DAS 140 / DAS 142 Forms (for California Prevailing Wage fringe benefits)

8. Reading Davis-Bacon rules a proven cure for insomnia!

Most California contractors are no doubt familiar with the Division of Labor Statistics and Research's ("DLSR") determinations establishing the prevailing wage rate for public works projects. These determinations are accessible on the DLSR's website, and set forth the applicable hourly wage rate for workers on these projects depending on their classification. The determination that will apply to a contractor will be one existing at the time of the contract bid date.