Prevailing Wage Projects: What Contractors Need to Know

If you're a general contractor working on public works projects in California, you know that prevailing wage compliance isn't optional—it's the law. But understanding what it means for your subcontractors, particularly specialty trades like commercial cabinetry, can save you headaches, delays, and potential penalties.

What is Prevailing Wage?

Prevailing wage is the minimum hourly wage that must be paid to workers on public works projects in California. It's set by the California Department of Industrial Relations (DIR) and varies by county, trade classification, and type of work.

For commercial cabinetry and millwork, this typically falls under the "Cabinet, Millwork and Finish Carpentry" classification (C-6). Prevailing wage rates include both the base hourly wage and fringe benefits.

Who Needs to Comply?

Any contractor or subcontractor working on a public works project must comply with prevailing wage requirements. This includes:

• State and federal government buildings
• Public schools and universities
• City and county facilities
• Publicly funded infrastructure projects

To work on these projects, contractors must be registered with the DIR. You can verify a contractor's registration status on the DIR website.

Certified Payroll: The Documentation Requirement

Prevailing wage projects require certified payroll reporting. This means every contractor and subcontractor must submit weekly certified payroll records that document:

• Employee names and classifications
• Hours worked each day
• Hourly wage rates paid
• Fringe benefits provided
• Deductions taken

These records must be submitted to the awarding body (the government agency funding the project) and are subject to audit. Errors or omissions can result in penalties, project delays, and even debarment from future public works projects.

Apprenticeship Requirements (DAS 140)

California law requires contractors on public works projects to employ apprentices in a ratio of at least one apprentice for every five journeypersons. If you don't have apprentices available, you must submit a DAS 140 form (Request for Dispatch of an Apprentice) to an approved apprenticeship program.

This requirement applies to all trades, including cabinetry and millwork. Failure to comply can result in penalties and project delays.

How Prevailing Wage Affects Your Project

Higher Costs: Prevailing wage rates are typically higher than standard commercial rates. Budget accordingly and ensure your subcontractors understand the wage requirements upfront.

Longer Timelines: Certified payroll reporting and apprenticeship compliance add administrative time. Work with subcontractors who have experience managing these requirements.

Compliance Risk: If your subcontractor fails to comply, you—the general contractor—can be held liable. Choose subcontractors who are DIR registered and have a proven track record on prevailing wage projects.

Choosing a Qualified Cabinetry Contractor

Not all commercial cabinetry contractors are qualified for prevailing wage work. When vetting subcontractors, ask:

• Are you registered with the California DIR?
• Do you have experience with certified payroll reporting?
• How do you handle apprenticeship requirements (DAS 140)?
• Can you provide references from previous prevailing wage projects?