California Prevailing Wage Law FAQ’s
Prevailing wage is a minimum or standard wage that an employer is required to pay an employee in order to avoid underpayment or overpayment. This applies to employees who work on public work projects or those under certain federal contracts. These prevailing wage models are enacted to ensure workers receive equal benefits and equal pay to foster equality in the workplace. California prevailing wage law ensures employees pay their workers wage rates prevailing in the local area.
Who is Liable to Benefit from Prevailing Wages?
All workers undertaking public work projects and contracts are covered under the California prevailing wage law. It includes the skilled and unskilled workers but doesn’t include security guards, architects, clerical staff, and other professionals.
What is the Criteria Used to Determine the Prevailing Wage Rate?
According to California laws, the prevailing wage rate is based on an hourly rate on public work projects. The wage rate is compensated to the majority of workers involved in public works categorized in certain adjacent job markets. Employees working in a given area get a modal prevailing wage.
What are the Effects of Prevailing Wages?
California prevailing wage law ensures the capability to get many workers to work on your project is not entirely based on the ability of a contractor or employer to pay more or lower than the other. Every bidder is required to submit the same wage rate while trying to secure public works projects. California laws dictate that not less than the prevailing charges of per diem be paid to every worker undertaking public works projects.
What is General Prevailing Wage Determination?
When the Director of the California Industrial Relations Department decides that the actual prevailing rates for a certain group or classification of work are the same throughout a given area, he/she issues a determination covering the whole area.
What is Meant by a Special Prevailing Wage Determination?
In instances where a type of work is not covered under general determination, the awarding body may file a request for a special prevailing wage determination 45 days prior to the bid advertisement date.
What is Meant by a Predetermined Change?
This is the basic changes or alterations to the basic wages paid hourly, holiday pay rates, overtime pay, or other employee payments specified in the collective bargaining agreement.
How is Overtime Determined?
Overtime is compensation for the extra hours worked after the required eight hours per day.
What is a Coverage Determination?
This is a process by which an awarding body like a contractor or employer may demand a written determination to the Director of Industrial Relations Department concerning a specific project or work to be performed.
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