All workers employed on public works projects in California must be paid the prevailing wage determined by the Director of the Department of Industrial Relations (DIR), CA according to the type of work and location of the project. In essence, prevailing wage is the pay rate that reflects the going compensation for similar work in a given area — these rates are often based on pay rates from local union agreements for similar jobs and are usually higher than the minimum wage.

The requirement applies to all employees working on projects when the total cost of the public works project exceeds $1,000. LMCC This is a much lower threshold than the federal requirement of $2,000, meaning more projects in California are subject to prevailing wage laws. There are limited exemptions: if an awarding body has a labor compliance program, prevailing wages are not required for construction projects of $25,000 or less, or for alteration, demolition, repair, or maintenance work of $15,000 or less.

Both prime contractors (hired directly by a public agency) and subcontractors must comply with prevailing wage laws.

Under California prevailing wage law, workers receive different wage rates for working on legally recognized holidays. All crafts recognize New Year’s Day, Memorial Day, July 4th, Thanksgiving Day, and Christmas. Beyond those five universal holidays, not all crafts recognize Veterans Day, Martin Luther King Day, or the day after Thanksgiving — which holidays apply depends on the specific trade classification and its applicable wage determination.

As of January 1, 2026, Diwali, known as “Diwali.” (the 15th day of the month of Kartik in the Hindu lunar calendar) was added to Government Code Section 6700 as a holiday.  AB 2156 redesignated March 31 from “Cesar Chavez Day” to “Farmworkers Day,” and was filed with the Secretary of State on March 26, 2026, taking effect immediately as an urgency statute. Thus the list of holidays specified by Government Code Section 6700 has been changed accordingly.

Diwali, often called the “Festival of Lights,” is one of the most widely celebrated festivals in Hinduism, Jainism, Sikhism, and some Buddhist traditions. It symbolizes the triumph of light over darkness, good over evil, and knowledge over ignorance. Celebrations typically span five days and include lighting oil lamps (diyas) and candles, fireworks, prayer and worship (particularly of Lakshmi, the goddess of prosperity), feasting, and exchanging gifts with family and friends. It’s observed by over a billion people worldwide, making it one of the largest religious celebrations in the world.

For crafts whose prevailing wage determination is based on a CBA, these changes may have no immediate impact — those crafts follow whatever holidays are recognized in their specific CBA. The CBA holiday list doesn’t automatically update just because Section 6700 changed.

For crafts whose prevailing wage determination is not CBA-based, the Section 6700 list is the governing holiday schedule. For those classifications, Diwali and Farmworkers Day (March 31) are now recognized prevailing wage holidays. That means if workers in those non-CBA classifications perform work on those days, they’d be entitled to the applicable holiday pay rate (typically double time, depending on the determination).