California’s prevailing wage laws are designed to ensure that workers are paid fairly for their labor on public construction projects. These laws aim to guarantee that construction workers receive wages that are on par with the local prevailing rates, preventing underpayment and exploitation.
Depending on the circumstances, a violation of prevailing wage laws could be grounds for an employment law claim. Let’s explore California’s prevailing wage laws, compliance requirements, enforcement, how to determine if you’re being paid unfairly, and what steps to take if you believe you are.
Breaking Down the California Prevailing Wage Law
The California Prevailing Wage Law (CPWL) is a set of regulations that requires workers on public works projects be paid a specific minimum wage rate, which is typically higher than the state’s regular minimum wage. These laws aim to ensure that workers on public construction projects receive fair compensation and that contractors compete on an even playing field when bidding for government contracts.
The CPWL applies to construction, alteration, demolition, installation, and repair work on public works projects in California. These projects include those funded by state or local governments, including school districts, cities, counties, and special districts. Contractors and subcontractors working on public works projects must pay their employees the specified rates. Failure to do so can result in penalties and legal consequences.
The prevailing wage rates for different trades and occupations are determined by the California Department of Industrial Relations (DIR) based on surveys of wages paid to workers in the locality where the project is located. These rates are usually updated annually. In addition to the basic hourly wage, contractors are often required to provide certain benefits to their workers, such as health and welfare benefits or retirement contributions, as specified in the wage determinations.
These wage rates can vary depending on the location and the specific trade or occupation involved in the project. Contractors and workers engaged in public works projects should check with the DIR or consult legal counsel to understand the rates and requirements that apply to their specific projects.
CPWL Compliance Requirements and Violations
Contractors and subcontractors must adhere to several key compliance requirements:
- Pay Rates: Ensure that employees are paid the appropriate rate for their specific job category in the geographic area where the work is performed.
- Record Keeping: Contractors are typically required to submit certified payroll records to the awarding agency or government entity, showing the wages and benefits paid to each worker on the project. This transparency helps ensure compliance with DIR regulations.
- Apprenticeship Programs: Public works contracts often include requirements for hiring apprentices and training them in various trades. Contractors must comply with these apprenticeship program regulations.
- Fringe Benefits: Provide employees with approved benefits, such as healthcare and retirement contributions, as required by the prevailing wage determination.
Contractors and subcontractors who fail to pay the appropriate rates or comply with other requirements may face penalties, including payment of back wages and possible debarment from bidding on public projects.
Two of the most common violations of the CPWL include:
- Underpayment of Wages: Contractors and subcontractors must pay their workers the prevailing wage rates as determined by the California Department of Industrial Relations (DIR). Underpaying workers in terms of their hourly wages is a clear violation of the law.
- Violation of Overtime and Work Hour Regulations: Contractors must also adhere to overtime and work hour regulations when working on public projects. Breaches of these rules, such as failing to pay overtime rates for eligible hours, are violations of the CPWL.
These types of violations may be grounds for legal action, particularly if your employer is discriminating against you. You may be able to file a claim for unpaid wages or a Fair Pay Act lawsuit, depending on the circumstances.
How to Tell If You’re Being Paid Unfairly
If you suspect that you are being paid unfairly on a public works project in California, follow these steps:
- Verify the Prevailing Wage: Confirm that you are being paid at least the rate for your job category and location. You can find prevailing wage determinations on the DIR’s website.
- Check Your Pay Stub: Review your pay stub for accuracy. Ensure that all hours worked and applicable benefits are correctly reflected.
- Talk to Your Coworkers: Discuss your concerns with your coworkers to find out if they are also being underpaid or if certain groups of people are receiving more money for the same responsibilities. (Discussing wages is always allowed–it’s against the law for employers to interfere with your right to discuss wages and benefits.)
- Document Violations: Keep detailed records of your work hours, pay stubs, and any communication with your employer regarding wage issues.
- Report Violations: If you believe you are being paid unfairly, contact the Labor Commissioner’s Office to file a complaint. You can do this anonymously if you prefer.
If you determine that you are being underpaid or discriminated against on a public works project, consider consulting with an attorney who specializes in labor law to explore your legal options. In the meantime, continue to keep records of your work hours, pay stubs, and any correspondence with your employer or government agencies. This could be crucial to proving your case if you need to file a claim.
Get Help With Your Wage Claim
California’s prevailing wage laws are crucial in ensuring that workers on public works projects receive fair compensation. Compliance with these laws is obligatory for contractors and subcontractors, and workers should be aware of their rights and take action if they believe they are being paid unfairly. If you believe you’re being paid unfairly, the experienced employment law attorneys at Rudy, Exelrod, Zieff & Lowe, LLP can help. Our skilled team is prepared to represent people who have experienced wage theft, unpaid wages, and pay discrimination in California. Learn more about how we can assist you by scheduling your consultation today.