Public WorksQuestion 1589 of 1632

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

a.The basic hourly rate plus a flat thirty percent fringe allowance
b.The basic hourly rate plus travel and subsistence payments only
c.The basic hourly rate plus the contractor's overhead
d.The basic hourly rate plus employer payments for benefits

Explanation

Labor Code §1773.1(a) defines per diem wages as the basic hourly rate plus employer payments for health and welfare, pension, vacation and holiday, apprenticeship or other training, worker protection committees, and industry advancement funds. There is no flat percentage: the fringe amounts come from the Director's determination for that craft and county. Travel and subsistence are a separate §1773.8 obligation and do not stand in for the fringe package. Overhead is the contractor's own money and is never credited against what the worker is owed.

Law Reference: Labor Code §1773.1(a)

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