The prevailing wage is the average wage paid to workers in similar jobs in your area. This ensures fair pay for construction workers on public projects.

Here’s a breakdown of prevailing wage and certified payroll requirements for construction projects in California:

Federal Projects (Davis-Bacon Act):

• Applies to projects 100% funded by the federal government. 
• Separate requirements from California prevailing wage.

State-Funded Projects:

• Applies to projects involving any California awarding body.
• Must comply with both federal and state prevailing wage requirements (if applicable).
• Requires following both federal and state certified payroll reporting procedures.

California Prevailing Wage Projects:

These projects typically involve:

• Construction
• Alteration
• Demolition
• Installation
• Maintenance
• Repair work
• Done under contract
• Paid for (in whole or in part) with public funds

Certified Payroll Reporting for State Projects:

• Must be submitted online using California’s designated portal.
• Link to California’s Certified Payroll Reporting Portal: https://www.dir.ca.gov/Public-Works/Certified-Payroll-Reporting.html

New prevailing wage determinations are issued twice a year, on Feb. 22 and Aug 22. The determinations become effective ten days after the rates are published.

Contractors should refer to the date of the bid advertisement to determine what wage rates must be used for the project.

For more info go to: https://www.dir.ca.gov/oprl/2023-1/PWD/index.htm

California has separate prevailing wage rates for residential and commercial construction projects. Here’s a summary for residential projects:

Effective Date: Applies to projects starting on or after December 11, 2022.

Residential Definition:

• Single-family homes
• Apartments up to four stories

Prevailing Wage Rates:

• Residential rates apply for projects meeting the above definition.
• General commercial rates apply if the project includes structures exceeding four stories or otherwise doesn’t meet the residential definition.
• (Link to Director’s General Prevailing Determinations: https://www.dir.ca.gov/public-works/prevailing-wage.html)

If No Specific Rate Exists:

Refer to the Director’s General Prevailing Determinations for the applicable wage rate.

Here’s a breakdown of prevailing wage requirements in California based on project size and awarding body type:

• Projects Over $1,000: Generally require prevailing wages for all workers.

• Awarding Body with Labor Compliance Program:

  • Construction Projects: Exempted from prevailing wage for projects under $25,000.
  • Alteration/Demolition/Repair/Maintenance: Exempted for projects under $15,000.

Important Note:

• These are general guidelines. Always check with the relevant awarding body for specific requirements and potential changes.

Resources:

• California Department of Industrial Relations (DIR): https://www.dir.ca.gov/public-works/prevailing-wage.html 

Here’s a quick guide to overtime for workers on California public works projects subject to prevailing wage:

• Standard Overtime: Time-and-a-half pay for exceeding:
  • 8 hours in a workday
  • 40 hours in a workweek
• Specific Overtime Rules:
  • Each prevailing wage determination for a craft may have specific regulations and pay rates for overtime.
  • Refer to the relevant prevailing wage determinations for details.

Overtime Resources:

• California Department of Industrial Relations (DIR): https://www.dir.ca.gov/public-works/prevailing-wage.html

2023 For the federal certified payroll reporting form(WH-347) click here.

Prevailing wage determinations click here.

For more information regarding prevailing wage laws on public works projects click here.

The California funded projects certified payroll reports must be submitted online, using their online portal.

Prevailing Wage FAQ for CA: https://www.dir.ca.gov/dlse/FAQ_PrevailingWage.html

California Prevailing Wage Rates: https://ferrarovega.com/blog/california-prevailing-wage-rates/