Public WorksQuestion 689 of 690

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

a.The basic hourly rate only, paid entirely in cash
b.Cash wages plus federal H-2A migrant-worker benefits
c.The basic hourly rate plus an additional 50% as 'fringe'
d.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

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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