Prevailing Wage: The hourly wage, usual benefits and overtime, paid in the largest city in each county to the majority of workers, laborers, and mechanics. Prevailing wages are established by the Department of Labor and Industries for each trade and occupation employed in the performance of public work. They are established separately for each county and are reflective of local wage conditions.

Almost all public works construction projects are required by the Davis Bacon Act to pay all workers who work on the public works project the prevailing wage in the local area. This wage approximates the local union scale for the particular trade. This rate is usually much higher than the wages paid for private work and the contractor has to adjust their bid accordingly or face serious consequences.

Sections 1720 - 1780 of the California Labor Code requires that workers on every state, local, and special district government public works project with a contract cost of more than $1,000 be paid the prevailing rate of per diem wages for work of similar character in the locality of the public works project. To determine the prevailing rate, the Director of the State Department of Industrial Relations is required to ascertain rates established by collective bargaining agreements and rates determined for federal public works. If these rates are not those actually prevailing in the locality, DIR must consider further data from unions, employers and employer associations. DIR regulation (California Administrative Code, Sec. 16100) says that the prevailing rate shall be the single rate paid the greatest number of workers in a particular craft in a locality. This is called the modal rate. This regulation was adopted in 1956. The prevailing wage law was first enacted in California in 1931 -- 65 years ago -- and the provision requiring wages to be based on collectively bargained rates was enacted in 1953 -- 43 years ago.

History of Previous Wage

Link to:  http://www.sbctc.org/default.asp?id=508&pagetype=sitemap