Prevailing wage
Covered public works require prevailing wages, including applicable benefit components, based on the work performed and the project’s location.
California construction · Lab. Code §§ 1771, 1773, 1773.1 · DIR determinations
Labor Code § 1771 generally requires prevailing wages on covered public works performed under contract, except projects of $1,000 or less. It includes maintenance contracts and distinguishes work carried out by a public agency’s own employees. Whether a project is covered must be established before selecting a rate.
The applicable rate depends on the craft, classification or type of work and the locality. DIR’s determination supplies the relevant wage and benefit components; one statewide construction rate cannot replace that determination.
Section 1773.1 governs employer payments and credits for benefits. Credits have conditions and generally cannot reduce the required hourly straight-time or overtime wages. Its current text also contains annualization rules and revokes earlier DIR annualization exemptions as of January 1, 2026.
Read the primary sources
Explore the reference
Daily overtime
Covered nonexempt employees generally earn overtime after 8 hours in a day or 40 in a week, and double time after 12 hours in a day.
Travel & commute time
Employer-mandated travel after the first required reporting location is compensable under Wage Order 16, subject to its applicable CBA provision.
Meal & rest breaks
Covered employees generally receive a 30-minute meal period on shifts over 5 hours and paid 10-minute rest periods for each 4 hours or major fraction.