CSLB Law & Business ExamPublic WorksMedium
A public works project involves the installation of new electrical wiring in a school building. The local collective bargaining agreement for electricians specifies a journeyman wage rate of $55/hour and an apprentice wage rate of $30/hour. If the DIR's prevailing wage determination for this project lists a journeyman rate of $60/hour and an apprentice rate of $35/hour, which rates must the contractor pay?
- AAn average of the collective bargaining agreement rates and the DIR rates.
- BThe contractor may choose whichever set of rates is more economically favorable.
- CThe rates specified in the local collective bargaining agreement.
- DThe higher rates specified in the DIR's prevailing wage determination.
Show answer & explanationAnswer & explanation
Correct answer: D. The higher rates specified in the DIR's prevailing wage determination.
On public works projects, contractors must pay no less than the prevailing wage rates established by the DIR. If a collective bargaining agreement specifies lower rates, the higher DIR-determined rates must be paid to ensure compliance with public works law.
Why the other options are wrong
- A. Averaging rates is not a permissible method for determining prevailing wages.
- B. Contractors do not have the option to choose; they must pay the legally mandated rates.
- C. Collective bargaining agreement rates are superseded if DIR rates are higher for public works.
Prevailing Wage vs. CBA Rates
When a collective bargaining agreement (CBA) exists, public works contractors must pay the higher of either the CBA-specified wage rates or the Department of Industrial Relations (DIR) prevailing wage determination.
- DIR rates are minimum for public works.
- CBA rates can be higher than DIR, then CBA applies.
- If DIR rates are higher, they supersede lower CBA rates.
Memory trick: Always pay the HIGHER, never the lower!