(650) 332-8623Prevailing Wage in California: a Guide to Rules, Requirements, Rates, and More for 2025
Need to know prevailing wage rates for California projects? This guide will help you find everything you need to stay compliant in 2025!
Prevailing wage laws are important in California, especially in construction. It’s essential for both employers and workers to understand these laws because they affect wages, project costs, and compliance with state regulations.
This article explains the basics of California’s prevailing wage laws. You’ll learn how these rules are set and enforced and what they mean for businesses.
By the end, you should understand:
- What California’s prevailing wage laws cover
- How prevailing wages are decided and why they’re fair for workers
- How the state ensures businesses follow these rules
Understanding Prevailing Wage Laws in California
Prevailing wage is the pay rate for most workers doing a certain job in a specific area. California’s government sets this wage to match the usual pay for similar work in that area.
The Director of the Department of Industrial Relations (DIR) decides on prevailing wages, depending on the type of work and project location.
Prevailing wages are often based on pay rates from local union agreements for similar jobs. These rates are usually higher than the minimum wage, so workers get fair pay for their skills.
The Legal Framework for Prevailing Wages in California
California’s prevailing wage laws are based on “Little Davis-Bacon” laws, which expand the federal Davis-Bacon Act of 1931. The California Labor Code, sections 1720-1861, contains the main rules.
These laws apply to public projects funded by the state or local governments, like building, fixing, or maintaining public structures. Contractors and subcontractors on these projects must pay the set prevailing wage for each trade or job type.
These laws cover many workers, including laborers, mechanics, and apprentices, to ensure everyone involved in public projects gets fair pay.
Understanding California’s Prevailing Wage Laws
California Labor Code 1720-1861
California's Primary Prevailing Wage Statutes
California’s prevailing wage laws are primarily governed by sections 1720-1861 of the California Labor Code, which specifically focus on wages for those employed in constructing public works projects. These laws are sometimes referred to as “little Davis-Bacon” acts, due to their similarity to federal prevailing wage laws controlled by the Davis-Bacon Act of 1931.
Sections 1720-1743 set out the general scope and operational constraints of California’s prevailing wage laws; Section 1750 relates to the “right of action” for the second-lowest bidder on public works projects if the lowest bidder is convicted of labor law violations; Sections 1770-1784 set forth rules and constraints around wages; Sections 1810-1815 control working hours on prevailing wage projects; and Sections 1860-1861 set forth guidelines and restrictions around workers’ compensation.
1937
When Did California's Prevailing Wage Law Take Effect?
California’s prevailing wage laws are among the oldest in the country — the bulk of Labor Code Statutes 1720-1861 were first enacted in 1937. The state regularly updates its prevailing wage statutes, with a number of revisions and additions recorded since 2010.
DIR
The Department of Industrial Relations (DIR) is Responsible for Enforcing Prevailing Wage in California
California’s Department of Industrial Relations (DIR) oversees all prevailing wage issues in the state.
The Director of the DIR is responsible for setting prevailing wage rates, which are determined twice a year on February 22nd and August 22nd, to go into effect 10 days afterwards — each new rate determination thus becomes effective on March 4 (or March 3 on leap years) and on September 1st.
$1,000
What's the Minimum Value of Projects Covered by Prevailing Wage Laws in California?
California has one of the most stringent prevailing wage minimum values in the United States. Under California statute, employees on all public works projects worth more than $1,000 — effectively every public works project, as virtually nothing you can build costs less than $1,000 in 2025 — must be paid prevailing wages.
However, there are exemptions for government bodies awarding prevailing wage contracts if those government bodies have labor-compliance programs. In this case, the minimum value for prevailing wage coverage is $25,000 for construction work and $15,000 for demolition, repair, or maintenance work.
California Prevailing Wages for Common Roles
$16.00Stator Rewinder Base Wages (Statewide)
There are only a few roles covered by statewide prevailing wage rates in California. The lowest basic hourly rate guaranteed to any statewide role is the $16.00 base rate given to stator rewinders, who are mainly concerned with improving the efficiency and performance of electrical generators.
$4.98Stator Rewinder Fringe Benefits (Statewide)
Workers covered by prevailing wages are entitled to various benefits above and beyond their base hourly rate. Stator rewinders are entitled to total “fringe benefits” of $4.98, which is comprised of the following benefits at the given rates:
- Health and Welfare: $1.44
- Pension: $2.30
- Vacation: $0.31
- Holiday: $0.62
- Training: $0.31
This provides stator rewinders with a total prevailing wage hourly rate of $20.98.
$51.98+Boilermaker-Blacksmith Base Wages (Statewide)
Most roles covered by prevailing wage laws in California are fairly segmented by region. However, wages for boilermaker-blacksmiths are fairly consistent throughout the state, ranging from $51.98 in many Southern California counties to $58.18 in much of Northern California.
$43.45+Boilermaker-Blacksmith Fringe Benefits (Statewide)
Boilermaker-blacksmiths are entitled to one of the highest fringe benefit rates for any role covered by prevailing wages in California. For Southern California projects, boilermaker-blacksmiths may receive total “fringe benefits” of $43.45, which is comprised of the following benefits at the given rates:
- Health and Welfare: $8.57
- Pension: $20.64
- Vacation and Holiday: $9.00
- Training: $3.90
- Other: $1.34
This provides boilermaker-blacksmiths with a total prevailing wage hourly rate of $95.43 in Southern California. Northern California boilermaker-blacksmiths are entitled to total fringe benefits of $43.80, slightly higher than their SoCal peers.
$28.59+Boilermaker-Blacksmith Helper Base Wages (Statewide)
Workers who assist boilermaker-blacksmiths are entitled to substantially lower prevailing wage rates than the master tradesmen they help. Throughout Southern California, these workers earn prevailing wage rates of $28.59, with somewhat higher rates of $32.00 available to these helpers in Northern California.
$6.00+Boilermaker-Blacksmith Helper Fringe Benefits (Statewide)
Boilermaker-blacksmith helpers are eligible for far fewer “fringe benefits” than boilermaker-blacksmiths, as they are entitled to total fringe benefits of only $6.00 in Southern California, comprised of:
- Pension: $0.76
- Vacation and Holiday: $0.00
- Training: $3.90
- Other: $1.34
This provides boilermaker-blacksmiths with a total prevailing wage hourly rate of $34.59 in Southern California. Northern California boilermaker-blacksmiths are entitled to total fringe benefits of $38.50.
This role is not eligible for healthcare benefits until a boilermaker-blacksmith helper has put at least 2,000 hours into their role.
$89.76Asbestos Worker (Mechanic), Heat and Frost Insulator Base Wages (Northern CA)
Workers who deal with hazardous asbestos are entitled to one of the highest prevailing wage rates in California. There are two classifications of asbestos worker — Mechanics and general Workers — with the more specialized Mechanics earning $89.76 per hour in base wages. Workers who aren’t qualified as mechanics may still earn $43.44 per hour in Southern California for dealing with asbestos.
$25.56Asbestos Worker (Mechanic), Heat and Frost Insulator Fringe Benefits (Northern CA)
Asbestos workers are eligible for substantial fringe benefits in California. Asbestos mechanics may receive total fringe benefits of $25.56 in Northern California, comprised of:
- Health and Welfare: $15.75
- Pension: $7.72
- Vacation and Holiday: $0.00
- Training: $1.60
- Other: $0.49
Thus, Asbestos Workers of the Mechanic specialization can earn a total prevailing wage hourly rate of $115.32 in Northern California, which is one of the highest total wage rates for any type of construction worker in the state.
$71.87Cable Splicer Base Wages (Statewide)
The highest statewide prevailing wage rate is promised to cable splicers, who perform high-risk work on electrical lines. These professionals are entitled to base wages of $71.87 per hour throughout the state of California.
$26.08Cable Splicer Fringe Benefits (Statewide)
California promises significant benefits to cable splicers working on prevailing wage projects. These workers are entitled to total “fringe benefits” of $26.08, which is comprised of the following benefits at the given rates:
- Health and Welfare: $8.25
- Pension: $16.56
- Training: $1.08
- Other: $0.19
This provides cable splicers with a total prevailing wage hourly rate of $97.95.
California Prevailing Wage Resources
Don’t see the role you’re looking for on our list?
California regularly updates prevailing wage rates for roles throughout the state. You can find all current prevailing wage rates, for all roles and locations, on the DIR’s Prevailing Wage Determinations page:
CA Department of Industrial Relations – Prevailing Wage Determinations Page
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Typical Fringe Benefits and Calculations in CA
Many covered roles are eligible for health insurance benefits in California. However, some apprentices and helpers — inexperienced newer workers typically supporting a master tradesman — do not receive health coverage at all, or may not receive it until they’ve worked a certain number of hours in the role.
“Health and Welfare,” as it’s called in California’s prevailing wage documentation, is typically either the largest or second-largest component of a prevailing wage worker’s fringe benefits.
Dental insurance will generally be included in the Health and Welfare fringe benefit for workers in California.
Vision insurance will generally be included, where available, in the Health and Welfare fringe benefit for workers in California.
California classifies PTO benefits for prevailing wage workers as either “Vacation” or “Holiday” pay, with both categories sometimes combined for certain roles.
Some roles may not be eligible for this benefit — there appears to be no specific rationale for why most California prevailing wage roles are eligible for PTO benefits, while others are not. The availability of PTO benefits may relate to the urgency of the work, as roles such as Utility Lineman and Asbestos Worker are among those not receiving PTO with their fringe benefits.
Most prevailing wage roles are eligible for vacation time. The rules and restrictions governing this fringe benefit are typically the same as those covering PTO, as detailed above.
Most prevailing wage roles are eligible to receive a fringe benefit for “training,” which is functionally equivalent to tuition reimbursement. Either way you slice it, it’s a benefit to offset the cost of getting better at your job.
California’s prevailing wage guidelines do not appear to cover bonus payments for any role we reviewed while writing this article.
Most roles covered by prevailing wage rates in California are eligible for pension contributions. The pension “fringe benefit” is typically the largest or second-largest of all prevailing wage fringe benefits for any role, with the occasional exception of healthcare coverage.
California will contribute to a prevailing wage worker’s pension plan, but no guidance is given on contributing to a 401(k) or other private retirement plan.
Most roles covered by prevailing wage statutes in California will include an “Other” category in their fringe benefit tables. These benefits are never specified or detailed, but may be intended to cover travel costs and equipment costs — these are merely our best guesses, as “Other” might include nearly anything without further detail available.
As with other fringe benefits in California, there appears to be no consistent calculation or scale used to set each benefit rate — it’s likely the DIR determines fringe benefits case-by-case each time it promulgates new data.
Employer Responsibilities in California
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Employers must pay employees the prevailing wage rates set by the DIR for their specific trades.
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Keep accurate records of hours, wages, and payroll info for public works projects — these records may be inspected by government agencies.
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Submit certified payroll reports to the contracting agency to ensure transparency in wage practices.
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Monitor subcontractors and suppliers to make sure they’re following prevailing wage laws and keeping accurate payroll records.
Penalties for Prevailing Wage Noncompliance
Back Wages+Failure to Pay Prevailing Wage
Employers who don’t pay the prevailing wage can face big fines, including back pay and interest owed to workers. Employers found liable for noncompliance with California’s prevailing wage statutes must pay eligible employees their full back pay plus interest.
$200 /dayAdditional Penalty
Employers violating California’s prevailing wage laws may also be fined $200 per day per underpaid worker, which can add up quickly.
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Certified Payroll and CA Prevailing Wages
Certified payroll is essential to prevailing wage projects, as it ensures transparency and accountability in how wages are paid.
Certified payroll reports document compliance with prevailing wage laws, showing that employees are receiving the correct wage rates for their specific trades or roles. These reports include detailed information on wages paid and hours worked, allowing stakeholders to confirm that workers are fairly compensated and helping to maintain trust and accountability in wage practices.
Moreover, certified payroll reports create a clear audit trail for tracking wage payments and investigating any discrepancies or wage theft claims. They serve as valuable resources for enforcement agencies and auditors who monitor adherence to prevailing wage laws, making them critical for both routine checks and in cases where wage violations are suspected.
To maintain compliance, it’s wise to regularly review payroll records, certified payroll reports, and other compliance documents to catch any discrepancies or potential issues. Conducting internal audits can further help in assessing your compliance status with prevailing wage laws and addressing any problems promptly.
When in doubt or facing challenges in meeting these requirements, seeking guidance from legal counsel or labor compliance consultants can provide tailored support and ensure your business meets prevailing wage standards effectively.
Navigating Prevailing Wage Requirements in California
Know Your Rights as a Worker
Worker engagement is important for ensuring prevailing wage laws are followed. By knowing your rights and standing up for fair treatment, you can make sure you’re paid fairly for your work on public projects.
First, get to know the prevailing wage laws and rates that apply to your specific job. You have the right to be paid the set wage rate for any public works job in California.
It’s also helpful to stay informed about any changes in wage rates or new enforcement actions. The DIR and labor groups offer resources to help you stay up-to-date.
Keep a careful record of the hours you work on public projects, including overtime, breaks, and any extra pay. Use timesheets or work logs to have proof in case there’s a disagreement over your wages. If you think your employer isn’t following prevailing wage laws or is holding back your wages, report it to authorities like the DIR or your labor union. You may have protections against retaliation for reporting these violations.
If you find it hard to assert your rights or handle wage disputes on your own, consider getting help from a labor attorney or legal aid organization that specializes in employment issues. These professionals can guide you and help you seek fair compensation if your wages have been wrongfully withheld.
Know What to Do as an Employer
Get to know the rules and obligations that apply to your business and projects, including wage rates, record-keeping, and reporting requirements set by the DIR.
Set up strong payroll practices to make sure wages are calculated and documented correctly for employees on public works projects. Use systems to track hours worked, wage rates, and any fringe benefits that might apply.
Training is key as well. Make sure that supervisors, payroll administrators, and project managers understand prevailing wage laws and know how to follow compliance procedures. Teaching employees about these responsibilities helps everyone stay on the same page.
Regularly reviewing your payroll records, certified payroll reports, and other compliance documents can help catch any issues early. Doing internal audits can also keep you on track and make it easier to fix any problems before they become larger issues.
If you have questions about prevailing wage requirements or run into difficulties, consider reaching out to legal counsel or consulting firms that specialize in labor law and prevailing wage compliance. These professionals can give advice and support that fits your specific business needs.
Common Prevailing Wage Challenges for Employers in California
- Complex Rules: Prevailing wage laws are complicated, especially for small businesses without labor law expertise.
- Heavy Recordkeeping: Keeping detailed payroll records and reports takes a lot of time and resources.
- Risk of Penalties: Not following prevailing wage laws can lead to fines, canceled contracts, and legal trouble.
- Wage Disputes: Workers may face issues with wage payments, leading to disputes and even lawsuits.
- Worker Shortages: Finding skilled workers is tough, making it harder to meet prevailing wage requirements on public projects.
Prevailing Wage Solutions for Employers in California
Here are some practical solutions to help employers and workers with prevailing wage compliance:
- Education and Training: Provide training for employers, contractors, supervisors, and workers to build knowledge of wage laws, recordkeeping, and dispute resolution.
- Use Technology: Use payroll software and compliance tools to simplify recordkeeping, automate payroll, and create accurate payroll reports.
- Seek Expert Help: Get advice from legal experts, labor specialists, or industry associations for guidance on complex rules and help with compliance checks and resolving issues.
- Encourage Transparency: Share clear information about wage rates, hours, and benefits with workers and keep communication open to quickly resolve any questions or concerns.
- Address Workforce Gaps: Invest in workforce programs and apprenticeships to attract skilled workers. Partner with unions, vocational schools, and community groups to increase training and job opportunities.
Looking for other state-specific labor laws? Here are some of our related guides for review and comparison purposes:
Final Thoughts
In this guide, we covered the essentials of prevailing wage laws, tackled the common compliance challenges, and offered actionable solutions to help you navigate these requirements confidently.
Mastering California’s prevailing wage laws isn’t just about ticking boxes — it’s about creating a fairer, more transparent work environment that benefits everyone involved.
For workers, compliance means fair pay and a better quality of life. For employers, it builds trust, enhances credibility, and reduces risks, positioning your business as a respected player in the industry and community.
The rewards of compliance go beyond simply avoiding penalties; they can create workplaces where everyone can thrive.
Ready to make prevailing wage compliance easy and stress-free? Try Workyard today to simplify payroll, streamline compliance, and keep your business moving forward confidently. Click here to see how Workyard can help, or start a 14-day free trial now!
Prevailing wages in California are a critical component of the state’s labor laws, designed to ensure fair compensation for workers engaged in public works projects. Here are the key points to understand prevailing wages in California:
Determination and Basis
Prevailing wage rates are determined by the Director of the California Department of Industrial Relations (DIR) based on collective bargaining agreements, rates predetermined for federal public works, and data from local labor organizations, employers, and employer associations.
Geographic and Occupational Variations
Prevailing wage rates vary depending on the type of work being performed and the geographic location of the project. For example, the prevailing wage rate for a carpenter in San Francisco may differ from that in Los Angeles due to differences in local labor markets and the cost of living.
Components of Prevailing Wage Rates
Prevailing wage rates include several components:
- Basic Hourly Rate: The minimum hourly wage paid to workers.
- Fringe Benefits: These include health insurance, pension contributions, vacation/holiday pay, and training programs. Contractors can pay these benefits directly to workers or through approved benefit plans.
Application to Public Works Projects
Prevailing wages apply to all construction, alteration, demolition, installation, maintenance, or repair work done under contract and paid for in whole or in part out of public funds. This includes pre- and post-construction activities related to public works projects. However, projects valued at $1,000 or less are exempt.
Worker Classifications
Prevailing wage rates are set for various worker classifications, including journeymen and apprentices. Journeymen rates reflect the compensation levels earned by experienced and fully trained workers, while apprentice rates are lower and reflect the lower skill and experience level of apprentices undergoing structured training and mentorship.
Compliance and Enforcement
Contractors and subcontractors must pay their workers not less than the specified prevailing rates of wages. Non-compliance with prevailing wage laws can result in significant penalties and claims that may be brought years after the work is complete.
Updates and Resources
Prevailing wage determinations are issued twice a year, on February 22 and August 22, and are published by the DIR. Workers and contractors can find the specific rates applicable to each craft, classification, or type of work and the geographic locality within the state through the DIR website.
Calculating prevailing wages in California involves several steps and considerations, as outlined by the state’s labor laws and the Department of Industrial Relations (DIR). Here’s a step-by-step guide to help you navigate the process:
Determine the Applicable Wage Determination
Go to the California Department of Industrial Relations (DIR) website and access the prevailing wage rates section. Select the project determination relevant to your project, which is usually provided by the prime contractor or the awarding body. These determinations are issued twice a year, on February 22 and August.
Identify the Worker Classification
Determine the specific craft, classification, or type of work being performed by each worker. This could include classifications such as carpenter, boilermaker, iron worker, etc. Ensure that each hour worked is classified correctly, as workers may perform different tasks during the day that fall under different classifications.
Check Geographic Location
Prevailing wage rates vary by geographic location within California. Ensure you are using the rates applicable to the county or locality where the work is being performed. For example, rates for a carpenter in San Francisco will differ from those in Los Angeles.
Calculate Basic Hourly Rate and Fringe Benefits
The prevailing wage rate includes both the basic hourly rate and fringe benefits. Fringe benefits can include health insurance, pension contributions, vacation/holiday pay, and training programs. These benefits can be paid directly to the workers or through approved benefit plans.
Example Calculation
For instance, if a worker is classified as a “Tree Trimmer (High Voltage Line Clearance)” in the San Francisco Bay Area, the prevailing wage might include a basic hourly rate of $39.26 plus $20.70 in fringe benefits, totaling $59.96 per hour.
Consider Travel, Holidays, and Shift Pay
Check the travel, holidays, and shift pay provisions that may apply to the specific classification. These can add additional compensation to the worker’s total hourly rate.
Review Special Notices
Check for any special notices or corrections issued by the DIR that may apply to your determination and classification. These notices can be found on the DIR’s prevailing wage homepage.
Ensure Compliance with Labor Code
Ensure all workers are paid not less than the specified prevailing rates of wages for all hours worked, as required by California Labor Code §1774. If workers are paid less than the prevailing wage rate, they are owed the difference, which can be recovered in a wage and hour action.
By following these steps, you can accurately calculate and ensure compliance with the prevailing wage requirements in California for public works projects.
Under California prevailing wage laws, overtime pay is governed by specific rules and regulations to ensure fair compensation for workers on public works projects. Here are the key points to understand overtime under California prevailing wage:
Overtime Hours
Overtime is considered for any work exceeding 8 hours in a day or 40 hours in a week. Hours worked beyond these thresholds must be compensated at the applicable overtime rate.
Overtime Rates
For hours worked between 8 and 12 hours in a single day, workers must be paid at 1.5 times their regular prevailing wage rate (time and a half).
For hours worked beyond 12 hours in a single day, or for work on the seventh day of a workweek, workers must be paid at double their regular prevailing wage rate (double time).
Weekend and Holiday Overtime
Overtime rates on weekends and holidays vary by craft and classification. For example, Saturdays may be paid at 1.5 times the regular rate, while Sundays and recognized holidays may be paid at double the regular rate. The specific rates are detailed in the prevailing wage determinations issued by the California Department of Industrial Relations (DIR).
Multiple Job Classifications
If a worker performs tasks under multiple classifications, overtime must be calculated based on the specific rates for each classification. For instance, if a worker spends part of the day in one classification and the rest in another, overtime is calculated separately for each classification.
Multiple Projects
Overtime must be calculated based on the total hours worked across all projects, regardless of the job site. This ensures that workers are compensated correctly for all hours worked, even if they are split between different projects.
Shift Differentials
For workers on multiple shifts or odd working hours, shift differentials may apply. These differentials can affect when overtime begins and the rate at which it is paid. The rules vary by craft and are specified in the DIR wage determinations.
Compliance and Enforcement
Employers are responsible for paying the correct overtime rates as specified in the prevailing wage determinations. Failure to comply can result in penalties, damages, accrued interest, legal fees, and court costs.
To determine if a job in California is subject to prevailing wage laws, you need to consider the following criteria and steps:
Type of Project
Prevailing wage laws in California apply to “public works” projects, which include construction, alteration, demolition, installation, maintenance, or repair work done under contract and paid for in whole or in part out of public funds. This also includes pre- and post-construction activities related to the project.
Contract Value
Prevailing wage laws apply to public works contracts valued at more than $1,000. Projects valued at $1,000 or less are exempt from these requirements.
Funding Source
The project must be funded in whole or in part by public funds. This includes projects funded by local government agencies, state agencies, or special districts.
Worker Classification
All workers employed on the project, whether by the contractor or subcontractor, must be paid the prevailing wage rates applicable to their trade or craft. This includes various worker classifications such as laborers, carpenters, plumbers, and operators.
Geographic Location
Prevailing wage rates vary by geographic location within California. You need to determine the rates applicable to the county or locality where the work is being performed.
