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Can Prevailing Wage rates increase more than 5% per year?

April 26, 2017increase rates Wage year

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Can Prevailing Wage rates increase more than 5% per year?

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A. Possibly. The Division of Labor Standards and Research (DLSR) of DIR conducts periodic surveys of prevailing wages by trade and location. Labor Code 1770 authorizes the Director of the DIR to set prevailing wages. Section 1773 of the Code describes what is considered in determining the rate and the role that employers may play in rate setting. Section 1773.4 describes the procedure to request a review of a rate. A contractor can pay an employee more than the prevailing wage rate. When an escalation clause is included in the contract, the Department will pay more when the prevailing wages increase. However, there will be no such provision if a worker gets an increase because of an anniversary date or other employer driven increase.