Explained: State of California Employment Prevailing Wages
At G&G Builders, our focus is on the construction of public works projects, meaning we are impacted by local prevailing wage laws. The State of California’s Employment Prevailing Wages Department of Industrial Relations (DIR) sets and enforces minimum wages for workers on public works projects in the state. Prevailing wages are designed to ensure that workers on public works projects are paid fair wages and benefits, preventing contractors from undercutting wages in order to win contracts. We’ve compiled everything you need to know about prevailing wages below.
Prevailing Wage Determinations
The Department of Industrial Relations publishes prevailing wage determinations (PWDs) for each county in the state of California, specifying the minimum hourly rates for each job classification. These minimum wages are determined based on the local prevailing wage for a particular job classification and geographic area. The PWDs are updated annually and are based on surveys of contractors and unions in each area. These laws ensure that workers on public works projects are paid fair wages and benefits that are comparable to those of workers in the same trade or occupation in the area where the work is being performed. This helps to promote a level playing field for contractors bidding on public works projects, and it ensures that workers are not exploited or underpaid.
Public Works Projects
The State of California Employment Prevailing Wages DIR applies to all public works projects, including construction, alteration, demolition, installation, and repair work, as well as maintenance work on public buildings and infrastructure. This includes projects funded by state or local government agencies, as well as projects funded in whole or in part by federal funds. While prevailing wages can add to the cost of public works projects, they are seen as a necessary measure to ensure fair wages and prevent the exploitation of workers. Prevailing wages also help to maintain a skilled workforce and promote local hiring, as contractors are required to pay the prevailing wage in order to win contracts.
Division of Labor Standards Enforcement
The DIR is responsible for enforcing prevailing wage laws through its Division of Labor Standards Enforcement (DLSE). The DLSE investigates complaints of non-payment or underpayment of prevailing wages, and it conducts audits of contractors to ensure compliance with prevailing wage laws. The DLSE also maintains a database of prevailing wage rates for various trades and occupations. If violations are found, the DIR can impose penalties and fines on the contractor or subcontractor. The DIR also provides education and outreach to contractors, subcontractors, and workers on prevailing wage laws.
Compliance With Labor Laws
The labor compliance portion is a crucial aspect of ensuring fair labor practices and compliance with government regulations. As part of this process, certified payroll reports must be submitted weekly, which is typically done by uploading them to the DIR website or using specialized software such as LCP Tracker or Elations Systems. These tools help ensure accurate reporting and compliance with labor laws, ultimately promoting fair and ethical practices in the workforce.
A Skilled Workforce
Overall, the State of California Employment Prevailing Wages DIR is a major component of the state's labor laws, designed to ensure that workers on public works projects are paid fair wages and benefits and to promote a skilled workforce and local hiring. At G&G Builders, we are committed to providing high-quality construction services that benefit our communities. Sign up below to receive our monthly email newsletter for project updates and future blog articles.