California Prevailing Wage Project Cost Estimator
Use this calculator to estimate the total labor cost for a public works project in California, based on a given prevailing wage rate, number of workers, and project hours. This tool helps contractors and project managers budget for labor expenses according to California Department of Industrial Relations (DIR) requirements.
Enter the total hourly prevailing wage rate (basic rate + fringe benefits) for the specific craft/classification and county, as published by the California DIR.
Specify the number of workers performing this specific job classification on the project.
Enter the total estimated hours each worker will spend on the project.
Enter the estimated number of overtime hours each worker will accrue. These hours should be part of the 'Total Project Hours per Worker'.
Typically 1.5 for time-and-a-half, or 2.0 for double-time, depending on specific project rules and collective bargaining agreements.
Estimated Project Labor Costs:
Total Regular Hours: 0
Total Overtime Hours: 0
Total Regular Pay Cost: $0.00
Total Overtime Pay Cost: $0.00
Total Estimated Project Labor Cost: $0.00
Understanding California Prevailing Wage
In California, the concept of "prevailing wage" is crucial for any contractor or entity involved in public works projects. It ensures that workers on these projects receive fair compensation, aligning with the wages and benefits paid to the majority of workers in a particular craft, classification, or type of work in the nearest labor market area.
What is a Public Work?
Generally, a "public work" refers to construction, alteration, demolition, installation, or repair work done under contract and paid for in whole or in part out of public funds. This includes projects for state, county, or city governments, as well as certain privately funded projects that receive public assistance or are built on public property.
Who Sets the Rates?
The California Department of Industrial Relations (DIR) is responsible for determining and publishing the prevailing wage rates. These rates are updated regularly and vary significantly based on:
- Craft or Classification: Different trades (e.g., Electrician, Plumber, Laborer, Carpenter) have different rates.
- Type of Work: Rates can differ for building construction, heavy construction, highway construction, or dredging.
- Geographic Location: Rates are specific to the county where the public work is performed.
- Effective Date: Rates change over time, so it's essential to use the schedule in effect at the time of bid advertisement or contract award.
Components of Prevailing Wage
A prevailing wage rate is not just an hourly cash wage. It comprises two main components:
- Basic Hourly Rate: This is the direct cash wage paid to the worker.
- Fringe Benefits: These are employer contributions for benefits such as health and welfare, pension, vacation, holiday, and apprenticeship funds. These benefits can be paid directly to the worker as cash (if not already provided by the employer) or contributed to approved benefit plans.
The total of the basic hourly rate and the fringe benefits equals the "total hourly prevailing wage rate" that must be met by the employer.
Overtime Rules
Prevailing wage laws also dictate overtime requirements. Typically, workers on public works projects must be paid overtime for:
- All hours worked in excess of eight hours per day.
- All hours worked in excess of 40 hours per week.
- All hours worked on Saturdays, Sundays, and holidays (though specific rules can vary).
The overtime rate is usually 1.5 times (time and a half) or 2 times (double time) the basic hourly rate, plus the full fringe benefit amount. Our calculator uses a general overtime multiplier for simplicity, but always refer to the specific DIR determination for exact rules.
How to Use This Calculator
This calculator is designed to help you estimate the total labor cost for a specific job classification on a public works project. To use it effectively:
- Find the Official Rate: First, you must obtain the correct "Hourly Prevailing Wage Rate" from the California DIR website (dir.ca.gov/Public-Works/Prevailing-Wage.html). Select the correct county, craft, and type of work. The rate you enter into the calculator should be the *total* hourly rate (basic + fringe).
- Input Worker Details: Enter the number of workers for that classification and their estimated total project hours, including any anticipated overtime.
- Adjust Overtime Multiplier: Ensure the overtime multiplier reflects the applicable rate (e.g., 1.5 for time and a half).
- Calculate: Click the button to see the estimated regular pay, overtime pay, and total labor cost for that specific group of workers.
Important Disclaimer
This calculator provides an estimation based on the inputs you provide. It is not a substitute for official prevailing wage determinations from the California Department of Industrial Relations (DIR). Contractors and public entities are legally obligated to comply with the exact rates and rules published by the DIR for each specific public works project. Always consult the official DIR website and, if necessary, legal counsel for precise compliance requirements.