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<br />Stephanie Stuart <br />Attorney at Law <br />510.808.2000 <br /> <br /> <br />DATE: <br /> <br />February 1,2007 <br /> <br />TO: <br /> <br />Don Brockman, Purchasing Agent <br /> <br />FROM: <br /> <br />Stephanie Stuart, Assistant City Attorney <br />and Cynthia 'Wang, Staff Attorney <br /> <br />RE: <br /> <br />Applicability of Prevailing Wage Rates. <br /> <br />Question <br /> <br />What constitutes a project that the city must pay the prevailing wage rate for? Specifically, the <br />question was asked with respect to dollar value and to "maintenance vs. public works projects." <br /> <br />Summary Answer <br /> <br />All workers on public works projects over $1,000 must receive the general prevailing rate of per <br />diem wages (commonly referred to as prevailing wages) for work of a similar character in the <br />locality in which the public work is performed. Cal. Lab. Code 9 1771. Under Labor Code 9 <br />1771.5(b), as long as the City has adopted a special labor compliance program, the City is not <br />legally required to pay prevailing wages for maintenance, alteration, demolition, or repair projects <br />of $15,000 or less, or for construction projects of $25,000 or less. In short, the City of San <br />Leandro ("City") is governed by the higher thresholds if it has initiated and enforced a labor <br />compliance program. <br /> <br />Discussion <br /> <br />State labor law requires payment of prevailing wages and the maintenance of certain payroll <br />records, regulates working hours, overtime compensation and employment of apprentices, and <br />mandates workers' compensation insurance coverage. See Cal. Lab. Code SS 1720 et seq. <br /> <br />The general rule is that on public works projects over $1,000, all workers are entitled to the <br />general prevailing rate of per diem wages (commonly referred to as prevailing wages) for work of <br />a similar character in the locality in which the public work is performed. Cal. Lab. Code 9 1771. <br />If an awarding body has a labor compliance program, prevailing wages are not required to be paid <br />for any public works project of $25,000 or less when the project is for construction work; or for <br />any public works project of $15,000 or less when the project is for alteration, demolition, repair <br />or maintenance work. See Cal. Lab. Code 9 1771. 5(b). This means that if San Leandro has <br />initiated a labor compliance program, it is subject to the higher thresholds. <br /> <br />prevailing wage - maintenance v public works/ 136.001 <br />