Public WorksQuestion 689 of 1605

California's prevailing wage on public works projects, under Labor Code §1773.1, consists of:

a.The basic hourly rate PLUS employer payments for (1) health and welfare, (2) pension, (3) vacation/holiday, (4) apprenticeship or other training programs, (5) worker protection and assistance programs/committees, and (6) industry advancement and collective bargaining agreement administrative fees — all as set by the DIR Director's prevailing wage determination
b.Cash wages plus federal H-2A migrant-worker benefits
c.The basic hourly rate only, paid entirely in cash
d.The basic hourly rate plus an additional 50% as 'fringe'

Explanation

Labor Code §1773.1(a) defines the prevailing 'per diem wages' to include the basic hourly rate plus employer payments to or on behalf of the worker for health/welfare, pension, vacation/holiday, apprenticeship/training, worker protection/assistance committees, and industry-advancement/CBA administrative fees. These employer payments may be made in cash to the worker or paid into a benefit fund. The Director of DIR sets the prevailing rates by craft and locality under §1773. Cash-only or arbitrary-fringe options misstate the rule. Failure to make the full prevailing wage (including the fringe components) is a §1775 violation up to $200 per worker per day plus restitution.

Law Reference: Labor Code §1773.1

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