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California: Prevailing Wage Determinations for Certain Public Works Projects May Not Be Below $10.50 Per Hour

Prevailing Wage Rates Apply to Public Works Projects of More than $1,000

The California Department of Industrial Relations (DIR) has released a notice stating that the prevailing wage determinations for workers on certain public works projects may not be below $10.50 per hour.

Background
The prevailing rate is generally defined as the basic hourly rate being paid to a majority of workers engaged in a particular craft, classification, or type of work within the locality and in the nearest labor market. Under state law, the Director of the DIR is responsible for determining the prevailing wage rates for each worker employed on public works projects of more than $1,000.

DIR Notice
Effective as of January 1, 2017, the Director’s prevailing wage determinations may not be below $10.50 per hour. Each employer is required to pay at least $10.50 per hour for the basic hourly rate in all cases where the published prevailing wage rate is below the California minimum wage. Any and all employer payments required by these determinations must also be paid.

Note: If the California minimum wage is increased in the future to an amount above that shown in a prevailing wage determination, the basic hourly rate in that determination automatically increases to the new minimum wage.

Click here to read the text of the notice.

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