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The prevailing wage is the hourly rate (plus fringe benefits) that must be paid to workers on a covered public‑works project in a given craft/classification and locality. Awarding bodies must care because if the project is subject to prevailing wage laws, they bear oversight responsibility and may face project delays or funding issues if the wage laws are ignored.

Reference: California Department of Industrial Relations – Public Works Overview: https://www.dir.ca.gov/dlse/FAQ_PrevailingWage.html

Projects that are construction, alteration, demolition, installation or repair work (including maintenance) done under contract, paid for in whole or in part with public funds. The wage requirement generally applies when the project contract value exceeds $1,000 (unless a labor‑compliance program exemption applies).

Reference: DIR – Prevailing Wage on Public Works Projects: https://www.dir.ca.gov/public-works/prevailing-wage.html

A coverage determination is a written decision by the California Department of Industrial Relations (DIR) about whether a specific project or type of work is subject to prevailing wage law. Awarding bodies should request one when it’s unclear whether the work qualifies (for example: mixed funding, subcontracted work, or unusual scope).

Reference: DIR – Coverage Determination Process: https://www.dir.ca.gov/OPRL/coverage.html

Disclaimer: This FAQ is provided for informational purposes only and does not constitute legal advice. For project-specific guidance, please consult your legal counsel or the California Department of Industrial Relations (DIR).