The California Department of Industrial Relations oversees the states Prevailing Wage Law. This law states that all employees of construction contractors on any public work must be paid the prevailing wage for that trade in the county, which is usually the union rate. A public work is defined as a job that is done under contract and that is paid for in whole or in part out of public funds.
What appears relatively clear in theory can become quite opaque in practice. For example, factory-built buildings have been the focus of recent attention. Because these buildings, usually schools, are quite standardized, manufacturers have argued that the workers who build them generally do not have to be paid the prevailing wage.
The DIR now agrees with this position, reversing four years of contrary decisions. In a decision involving the San Diego schools, the DIR generally recognized that the manufacture of factory-built classrooms is not work covered by the prevailing wage law.
For more information, contact Steve Churchwell or Dan Fuchs at Livingston & Mattesich.
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