CSLB Law & Business ExamPublic WorksMedium
Who has the legal authority to establish the prevailing wage rates that must be paid on a public works project in a given locality?
- AThe Contractors State License Board
- BThe awarding body's project engineer
- CThe Labor Commissioner's regional field office manager
- DThe Director of the Department of Industrial Relations
Show answer & explanationAnswer & explanation
Correct answer: D. The Director of the Department of Industrial Relations
Under Labor Code §1773, the Director of the Department of Industrial Relations determines the general prevailing rate of per diem wages for each craft, classification, or type of worker in the locality where the public works is performed. The awarding body must specify these rates in the bid documents, but does not set them.
Why the other options are wrong
- A. CSLB regulates contractor licensing and has no role in wage determinations.
- B. The project engineer implements, but does not determine, prevailing wage rates.
- C. The Labor Commissioner enforces wage laws but does not set the prevailing wage rate itself.
Prevailing Wage Determination
The general prevailing wage rate for each craft and locality is set annually by the Director of the DIR under Labor Code §1773.
- Based on collective bargaining agreements and wage surveys
- Published for each county and craft classification
- Awarding bodies must include the applicable rates in bid specs
Memory trick: Director decides the dollars.