4º ENSEÑANZAS PROFESIONALES

How to Read a Wage Determination

The August 22, 2003 (2003-1) Wage Determination for Laborer and Related

Classifications, found in Appendix 19, will assist with the explanation on how to read a Wage Determination. Numbers have been placed next to various items on the Wage Determination to correspond to the following explanations.

1. This is the craft the Determination covers. The number/pound sign indicates that Laborer and Related Classifications is an apprenticeable craft in Northern California. The added phrase “Related Classifications” means this Determination covers a classification not defined as a Laborer (i.e. Construction Specialist).

2. NC-23-102-1-2003-1 is the Determination number. NC represents Northern California and the 2003-1 generally represents the effective date of the rates listed on the

Determination. Determinations are issued twice a year, February and August. The year is followed by either a “-1” representing February or a “-2” representing August. However, it is important to monitor the DIR website for important notices (i.e. Predetermined Increases) that may be issued which would change the rate of pay. In the case of Laborer, the rates listed on the August Determination 2003-1 were predetermined for the February Determination 2003-1. This does not necessarily mean the rates on the Determination issued in August will mirror the rates of the Determination issued in February. In fact, the August issuance does not reflect the same amounts as listed on the February issuance for Laborer because those amounts expired in June.

3. Issue date. This date will almost always be either February 22 or August 22 of the current year. The Issue Date represents the date this Determination was first issued with the rates currently listed on the Determination. As explained above, the Determination number indicates when the rates currently listed on the Determination were effective (meaning agreed upon) and the Issue Date is when it was actually published as shown. For the classification of Laborer, the August 22, 2003 issuance is the February rates plus the rates listed on the Predetermined Increase.

4. Expiration Date of Determination. This Wage Determination expires on June 28, 2004. It is important to notice the double asterisks (**) following the expiration date. Prevailing Wage Determinations with double asterisks (**) after the expiration date indicate that the basic hourly wage rate, overtime pay rate, holiday pay rate, and employer payments to be paid for work performed after this date have been predetermined. If work is to extend past this date, the new rate must be paid.

Determinations with a single asterisk (*) following the expiration date do not have predetermined raises. Prevailing Wage Determinations with a single asterisk (*) after the expiration date, which are in effect on the date of the advertisement for bids, remain in

paid for the life of the project. The rate of pay for those trades with a single asterisk (*) remain the same for the life of the project.

5. Locality. Specifies which locations are affected by this Determination. The location of the project must be one of the areas named on the Determination unless the

Determination identifies the location as: “ all localities in the State of California.” 6. Area (1) and Area (2) - In this example the applicable localities have been separated into

areas. Not all Determinations will separate localities. This is done when the rate of pay for one area is different from another. Area 1 and Area 2 are followed by footnote “c” where a list of the counties that fall under each is found. Once the location is found the corresponding area rate is to be used.

7. Basic hourly rate. This is the rate to be paid to workers in the referenced classification. The basic hourly rate stated on a payroll form can be equal to or greater than this amount, but under no circumstances can it be less than this amount regardless of how fringes are being paid.

8. Employer Payments – Health and Welfare, Pension, Vacation and Holiday, and Training. Employer payments, commonly referred to as fringe benefits, make up the remaining portion of the Prevailing Wage Rate. Employer payments (health and welfare, pension, vacation and holiday only) can be paid in the form of “cash” to employees in their paychecks (cash should not be taken literally, the amounts must be reported on the certified payroll record) or can be paid out to appropriate funds or programs. Training fees must always be paid to the California Apprenticeship Council (CAC) or the applicable apprenticeship committee.

Employer payments can be broken out or combined. In other words, some may be paid in cash to the worker while others are paid out to appropriate funds or

programs.

The amounts listed under each category do not need to be paid in the exact

amount listed, except for training fees which can be no less than amount indicated on a Determination, as long as they add up to the same amount.

If an employer elects to pay a higher amount of training to the California

Apprenticeship Council (CAC) or Apprenticeship Committee, the employer can take a credit against one of the other fringe benefits. For example, the listed training fee is $.25 and the employer pays $.50 then they can deduct $.25 from a specific fringe, or if paid in cash, the fringe benefits’ overall amount.

9. Straight-Time/Hours. The number indicated under Straight-Time Hours indicates that a laborer can work 8 hours in one working day at the straight-time total hourly rate. Although most classifications use an 8-hour day, always double check because there are some classifications that only allow 7 or 7.5 hours in a day at the straight time rate of pay. Any hours worked in excess of that are to be paid at the overtime-hourly rate. The Total Hourly Rate is computed by adding the basic hourly rate plus the employer payments.

This is the overall rate an employer must pay (minus the training fees) to an employee to be in compliance with Prevailing Wage Laws. For example, a Certified Payroll Report showing a worker classified as a Laborer (Area 2) Group 1 should show payment of $31.67-.34=$31.33, in order to be in compliance.

10. Overtime Hourly Rate – Daily, Saturday and Sunday/Holiday. For Laborers, the daily overtime rate and the Saturday rate have both been calculated with a 1.5 multiplier. To calculate the basic hourly overtime rate, take the basic hourly rate and multiply it by 1.5. Employer payments do not change for overtime hours and are not multiplied by 1.5. Thus, the overtime hourly rate is the basic rate multiplied by 1.5 plus the employer payments/fringe benefits minus the training fee.

For example, the overtime calculation for a Laborer (Area 2) Group 1: $21.64 x 1.5+$10.03 = $42.49 - $. 34=$42.15

It is important to read all footnotes on a Determination. The Saturday overtime rate has a footnote “b” which provides information on exception(s) for work performed on a Saturday; such as inclement weather. Some Determinations will have a special Saturday rate that must be paid. The Sunday/Holiday rate is the rate to be paid for work occurring on those days. Some holidays, such as what is commonly referred to in the construction industry as “Black Fridays,” are days that no work is to occur for the relevant trades. This particular “holiday” is not applicable to all trades so the collective bargaining agreements can be a useful tool for researching which trades observe it and any other special

APPENDIX 19