Prevailing Wage California: Master Electronic Filing

California is the Golden State and is widely known for its sun, beaches, parks, and wine. Another thing California is known for? Its prevailing wage laws.

These laws, which have been around for decades, apply to all workers employed on public works projects in the state and require them to be paid a specific rate. California has some of the most comprehensive prevailing wage laws in the country.

In this article, we’ll break down some of the basics of prevailing wage in California to make filing easier. Not in California? We’re breaking down prevailing wage state by state. Check out this article for more information and to find your state.

Understand the Basics of Prevailing Wage California

As noted above, California has some of the most comprehensive prevailing wage laws in the country, and they’re governed by the California Department of Industrial Relations, or the DIR. These laws, which ensure “the ability to get a public works contract is not based on paying lower wage rates than a competitor,” have been on the books for decades.

In order to stay in compliance with the DIR California prevailing wage laws, businesses must submit California certified payroll reports and official documentation. Certified payroll reports help guarantee that employers are adhering to the legally required payment of prevailing wage, paying the correct wages for accurate work done at the established rate.

If you’re engaging in a public works project, it’s important to understand prevailing wage. From eligibility to rates to fringe benefits, having a deep understanding of prevailing wage in California will save you from making costly mistakes when it comes to filing your California certified payroll reports.

Eligibility Check: Who Must Pay Prevailing Wage

According to the DIR, California prevailing wage applies to “contractors and subcontractors on most public works projects” over $1,000. In this case, public works projects are those funded by public money, including construction, alteration, demolition, installation, repair, or maintenance projects. Sound familiar? If so, you should probably be paying prevailing wages.

As with anything, there are exceptions to this rule. Depending on the project type and whether or not the awarding body of the contract has a labor compliance program, the prevailing wage does not apply for construction projects under $25,000 or other types of projects under $15,000. 

California Solar Workers on a Project
California Green Energy Contractors

How Much Are Prevailing Wage Rates in California?

The DIR California prevailing wage rate depends on the type of work and project location; the Director of the DIR sets this amount. However, the prevailing wage rate is generally “based on rates specified in collective bargaining agreements.” The prevailing wage rate is set based on the “basic hourly rate paid…to a majority of workers engaged in a particular craft.

For specific prevailing wage rates based on the type of labor, please visit the DIR website.

Compensation Beyond Pay: Fringe Benefits and Prevailing Wage

Prevailing wage goes beyond the hourly rate or salary paid to laborers; it also includes fringe benefits, which are additional benefits and forms of compensation paid in addition to wages. These benefits ensure that workers receive fair and competitive total compensation packages, and prevent employers from denying laborers benefits.

Typically, fringe benefits include health insurance, retirement or pension benefits, vacation pay, and more. Some benefits are taxable, while others are not. Taxable fringe benefits are still subject to income tax and should be added as income to an employee’s W-2.

The required fringe benefits are based on prevailing wage rates, so be sure to check on what is required of your laborers before setting any standards or expectations. And, of course, don’t forget to include your fringe benefits when submitting your prevailing wage reports.

Violating Prevailing Wage Laws: What Are The Consequences?

No one wants to believe they’ll violate prevailing wage laws, but the reality is that it does happen sometimes, especially as projects become more and more complex. When violations can take many forms — think worker misclassification, under-reporting of hours, failure to report all workers, and failure to fund fringe benefits — it’s important to stay on top of your prevailing wage and Davis-Bacon reports.

Curious about the violations? There are numerous consequences. First and foremost, any party that fails to pay the prevailing wage will owe the difference in pay, plus interest, to the wronged party. In addition to owing back pay, those who fail to pay the prevailing wage may be subject to monetary penalties.

All this to say: prevailing wages and certified payroll reports are complicated, but it’s important to get them right. Not only are you impacting peoples’ livelihoods, but you’re also facing significant consequences if you fail to effectively follow the laws and regulations.

Solve Electronic Filing Challenges

Filing prevailing wage reports to demonstrate you’ve paid prevailing wages can be complicated: you have federal regulations, state regulations, and often even county or city regulations, plus each type of labor has its own prevailing wages, and then you mix in apprentices, and it can feel overwhelming. To make things more complicated, California requires electronic filing of your certified payroll reporting, or an eCPR. This brings with it its own set of challenges. But don’t panic: we have the solutions to your eCPR concerns.

One of the challenges of electronic filing you may face is having missing or incorrect data. Avoid data challenges with a thorough data review and validation process. This will ensure that your information is correct and complete before you begin filing.

Sometimes, payroll software used to track hours is incompatible with the eCPR system. Luckily, eCPR can be filed directly using the online form or by uploading an XML file, but sometimes that isn’t enough.

To address this concern, research and invest in payroll software compatible with eCPR forms and filing. One option for such software is Points North’s Certified Payroll Reporting, a software for small to large businesses that need to manage data and report on government and union contracts. By using Certified Payroll Reporting, you can save your team the time and hassle of manually e-filing.

Putting employee safety first is important, on the job and off. Electronic filing requires sensitive data to be transmitted, which can pose security risks. By implementing security best practices, such as data encryption and secure file transfer protocols, you will protect your employees’ valuable information.

Technical difficulties may arise whenever you’re using an electronic system for a job. Address this challenge by creating a backup plan for submitting your eCPR on time, just in case one file format doesn’t work.

Stay Up-to-Date

Regulations change rapidly, and keeping up with the changes is hard. Stay informed by regularly reviewing the updates published by the DIR, so you always know what’s expected of you and your eCPR.

Deep Dive: California Certified Payroll Reports

The paperwork required for certified payroll reporting can be complex and time-consuming, taking up valuable resources — like time — from employees. We’re breaking down the forms you need to know to simplify the California-certified payroll process.

Before you start filling out any paperwork, it’s crucial to prepare, no matter what form you may need. Collect the necessary documentation and plan your answers, then fill out the form, submit it, and archive the proof of submission for your records.

A-1-131 Form California

The A-1-131 form, also known as the Public Works Payroll Reporting Form, tracks and processes compensation. It details workers’ information, type of work performed, wages, benefits, and hours worked.

DAS-140 Form California

The DAS-140 form, also known as the Public Works Contract Award Information form, is used by contractors to notify apprenticeship committees that a public works project will use apprentices.

DAS-142 Form California

The DAS-142 form, also known as the Request for Dispatch of an Apprentice form, contacts apprenticeship committees to request apprentices for each craft or trade on a project.

DAS-140 vs. DAS-142 Forms: What’s the Difference?

According to the DIR, “all public works contracts valued at $30,000 or more carry an obligation to hire apprentices, unless the craft or trade does not require the use of apprentices.” That requirement includes the involvement of the DAS, or Division of Apprenticeship Standards, which “consults with employers to develop a skilled workforce with viable career pathways to increase productivity and strengthen our economy.”

Both the DAS-140 and DAS-142 are compliance-related documents used by the DAS to ensure fair labor practices and distribute opportunities for aspiring craftworkers; both are mandatory for contractors using apprentices.

DAS-140 notifies apprenticeship committees that a specific project will use apprentices for a craft. On the other hand, DAS-142 acts as a formal request from the contractor to dispatch apprentices from approved apprenticeship programs. 

Master Prevailing Wage California with Certified Payroll Reporting

Keeping up with California-certified payroll reporting and prevailing wage regulations can take time and effort. From understanding the requirements to ensuring they’re all being followed, it can be a full-time job. Make your job easier with Certified Payroll Reporting.

Certified Payroll Reporting helps companies of all sizes remain compliant with complex payroll regulations. From federal requirements to California certified payroll reporting, we can help you manage and report on your public works contracts. Access our team’s expertise, automate report generation, and minimize your risk with Certified Payroll Reporting, all while saving on costs. As we like to say, it pays for itself. For more information and to get started with Certified Payroll Reporting, contact us today.

Get Started with Certified Payroll Reporting

Entrust your compliance with a company that has experience working with California contractors and the DIR. We will help streamline your CA prevailing wages, save you time, and keep you compliant. 

Whether you choose to use our software or have us manage your compliance entirely through our Full-Service offering, our experts are here to help!