Public WorksQuestion 1589 of 1605

When a contractor must pay 'per diem wages' at the prevailing rate, this generally includes:

a.Only fringe benefits
b.Only the base hourly cash wage
c.The contractor's overhead and profit
d.The basic hourly rate PLUS employer payments for benefits such as health, pension, vacation, and training

Explanation

Prevailing 'per diem wages' (Labor Code §1773) include the basic hourly rate plus employer payments for fringe benefits — health and welfare, pension, vacation/holiday, and apprenticeship training contributions. Contractors must account for both the cash wage and the benefit components.

Law Reference: Labor Code §1773

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Reviewed by Abraham Chen Licensed California General Contractor (CSLB License #1101856 verify)
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