On public works projects in California, which wage requirements apply?

• A. Prevailing wage applies to public works projects; private projects are not required to pay prevailing wage unless the contract states otherwise.
• B. Federal minimum wage applies to all projects.
• C. No wage requirements apply.
• D. Living wage applies to all projects.

Answer: (A)

On public works projects in California, workers must be paid the prevailing wage for their trade in the project’s locality. This rate, set by the Department of Industrial Relations, includes both the base wage and any required fringe benefits, and it ensures wages reflect local standards for public projects funded by state or local agencies. Because of that, the wage requirement that applies to public works is the prevailing wage.

Private projects, funded entirely with private money, generally don’t have to pay prevailing wage unless the contract with the public agency (or a specific clause in the contract) requires it. So, prevailing wage is the standard for public projects, not automatically for private ones.