Happy New Year, prevailing wage friends!

As we ring in 2026, there are a few key updates from the California Department of Industrial Relations (DIR) you’ll want on your radar before the first certified payroll of the year goes out.

Statewide: Minimum Wage Now Sets the Floor

Effective January 1, 2026, California’s minimum wage increases to $16.90/hour.

DIR has clarified that no prevailing wage basic hourly rate can be below the state minimum wage. So even if a published determination shows a lower basic rate, contractors must pay at least $16.90/hour as the basic hourly rate, plus all required fringe and employer payments listed in the determination.

Sheet Metal Workers: Corrections & Future Increases

For Sheet Metal Workers (and related classifications) in several Bay Area and Northern counties, DIR issued corrections:

• The expiration date on certain 2025 determinations is corrected to June 28, 2026.

• Previously omitted predetermined increases are now confirmed for June 29, 2026, June 28, 2027, and July 3, 2028,

• Veterans Day has been added to the official holiday list for these determinations.

Floor Layers & Painters: 2026 Increases Adjusted

DIR also reduced some previously scheduled January 1, 2026 predetermined increases for:

• Carpet, Linoleum, Soft Floor Layers

• Carpet, Linoleum, Resilient Tile Layers

• Painters, Industrial Painters, and Bridge Painters

The total increase amounts still take effect on January 1, 2026, but the dollars are now reallocated between basic hourly rate, health & welfare, pension, and training — and in a few painter determinations, pension contributions actually decrease slightly while base pay goes up.

If you’re bidding or performing work in early 2026, this is a perfect moment to:

• Double-check the latest DIR determinations

• Confirm that your basic hourly rates are at or above $16.90

• Update your estimating templates and payroll systems for the new allocations

Here’s to a compliant, profitable, and stress-reduced 2026! 🎊

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