Prevailing Wage: Building a Better Future for All of California

Enacted in 1931, California’s prevailing wage law establishes the local minimum wage and workmanship standards on construction projects funded with state or local tax dollars—like roads, bridges and schools. In 2017, these standards were also applied to certain residential projects.

Prevailing wage promotes a level playing field for California construction businesses, and supports critical workforce training programs.  It means more projects are built by well-trained local workers who know how to get the job done right the first time.  That’s good for taxpayers and our economy.

Research shows that:

  • California’s prevailing Wage law creates 17,500 jobs; and 
  • California’s prevailing wage law boosts the economy by $1.4 billion, every year.

Studies consistently show that prevailing wage has no impact on total construction costs. This is because utilizing higher skilled local workers on dangerous construction jobs increases productivity and job site efficiency. By stabilizing the wage floor, it also reduces reliance on taxpayer funded welfare programs.

Without prevailing wage, California businesses and taxpayers would lose billions of dollars to out of state firms and thousands of our neighbors would be pushed into poverty. The roads, bridges and schools we depend on would be less safe, and the industry we count on to build them would face skilled labor shortages.

Support Prevailing Wage and Learn the Facts

Click Here to Download a Report about California’s Prevailing Wage Law

Click Here to Download a report on Prevailing Wage and California’s Housing Crisis.

Click Here to Download a fact sheet on Prevailing Wage and recently enacted state housing reforms.

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