Understanding DIR Prevailing Wages

This section explains what contractors need to know about paying workers the right wages on public works projects. Under California’s Labor Code, contractors must pay at least the prevailing wage—the standard rate set by the state for specific types of work. These rates include regular, overtime, and holiday pay, and they’re updated twice a year by the Director of Industrial Relations. The timing of the bid advertisement is important because it determines which wage rates apply for the entire project. Wage determinations also show expiration dates and symbols that mark whether rates will stay fixed or increase later.

You’ll also learn how overtime works on public projects. Workers have to be paid the correct overtime rate for their specific trade or classification. If someone works in more than one trade in a day—say, part of the day as an electrician and part as a painter—the overtime pay depends on which job they were doing during those extra hours. And if a worker splits time between public and private projects, the overtime must be based on the higher of the weighted average or the prevailing wage rate. The Labor Commissioner’s manual breaks down how to calculate this “regular rate of pay” so contractors stay compliant and workers get what they’re owed.

Overall, this information helps you understand your responsibilities under prevailing wage laws—how rates are set, when they apply, and how to properly handle overtime on public works projects.