How to Avoid DIR Penalties

In California, the Department of Industrial Relations (DIR) and the Labor Commissioner make sure workers on public projects get paid fairly according to prevailing wage laws. These laws set minimum rates based on the type of work performed, with contractors required to use the Director’s wage determinations to match tasks with the correct rate. Travel time and daily subsistence are considered part of wages, with fixed per diem amounts varying by classification. The DIR’s Scope of Work guides classification decisions, especially when workers perform multiple tasks—sometimes the higher rate applies for all hours. Investigators use worker complaints, contracts, inspections, and time/pay records to settle disputes, ensuring “hours worked” include compensable travel.

Overtime on public works projects is also carefully regulated. Any work beyond eight hours a day or forty hours a week must be paid at least time-and-a-half, with extra premiums for Saturdays, Sundays, and holidays. Some exceptions exist, like alternative workweeks or collective bargaining agreements that allow straight-time weekend work, but these must be recognized in the Director’s determination to apply. Even when exceptions exist, workers are generally limited to eight-hour days, and make-up Saturdays must be explicitly stated. Ultimately, prevailing wage laws prioritize the rates set by the Director over any collective bargaining provisions, protecting workers’ pay and ensuring consistency across public projects.