Notice of Understanding

The starting calculation is to be based on the Journeyman's base wage in accordance to the program Standards, ARTICLE XVI - Wage Schedule.

Wage Rates for State/Local Public Works - The wages and employer payments for employee benefits as defined in 8 C.C.R. 16000 for apprentices for regular and overtime work while employed on public works projects within the meaning of Labor Code 1720 et seq. shall be the per diem wage rates for apprentices in the apprenticeable occupation as determined by the Director of Industrial Relations in the geographic area of the project.

An ABC SoCal approved Subscribing Employer utilizing apprentices on State public works projects must pay apprenticeship Training Contributions in the amount published by the Director of Industrial Relations (DLSE) for each specific project or the per hour rate directed by the program Standards, whichever is greater, “for each apprentice hour and each journeyman hour worked on the project.”

The Training Contributions on state public works - for every hour worked for both the Apprentice and the Journeyman is:

• Electrical program is a minimum of $.90 Training Contributions for both.
• Plumbing program is aminimum of $.90 Training Contributions for both.
• HVAC program is a minimum of $.90 Training Contributions for both.
• Sheet Metal program is a minimum of $.90 Training Contributions for both.
• Electronic SystemsTechnician/Voice Data Video (Low Voltage) program is a minimum of $.90 Training Contributions for both.

*Note: According to the Division of Apprenticeship Standards the difference between the Training Contributions noted in the DLSE determinations and the required ABC SoCal Training Contributions can be taken out of the total benefit package as long as the Basic Hourly rate is not affected. Training Contributions are made payable to the ABC SoCal Merit Training Trust Fund. State Training Contributions are never paid to an employee. If a Training Contribution Form is needed, please contact the ABC SoCal office at 714-779-3187. Subscribing Employers do not need to fill out a CAC-2 since the Training Contributions are submitted to ABC SoCal and not to the State.

***Modifications to Wage Determinations can occur at any time!

Please sign-up for State Notifications on the DIR website so you can stay informed.

The starting calculation is to be based on the Journeyman's base wage. The apprentice's benefit package is a percentage of the Journeyman's package.

• Electrical program pay upgrades are based on a nine (9) period progress percentages of: Forty; Forty-five; Fifty; Fifty-five; Sixty; Sixty-five; Seventy; Seven-five; Eighty-five. Upgrades are every 888.8 OJT hours.
• Plumbing program pay upgrades are based on an eight (8) period progress percentages of: Forty; Forty-five; Fifty; Fifty-five; Sixty; Sixty-five; Seventy; Eighty. Upgrades are every 900 OJT hours
• HVAC program pay upgrades are based on an eight (8) period progress percentages of: Forty; Forty-five; Fifty; Fifty-five; Sixty; Sixty-five; Seventy; Eighty. Upgrades are every 1000 OJT hours.
• Sheet Metal program pay upgrades are based on an eight (8) period progress percentages of: Forty; Forty-five; Fifty; Fifty-five; Sixty; Sixty-five; Seventy; Eighty. Upgrades are every 813 OJT hours.
• Electronic Systems Technician/Voice Data Video (Low Voltage) program pay upgrades are based on an eight (8) period progress percentages of: Forty; Forty-five; Fifty; Fifty-five; Sixty; Sixty-five; Seventy; Eighty. Upgrades are every 600 OJT hours.

A Subscribing Employer utilizing apprentices on 100% Federally funded projects must pay apprenticeship Training Contributions in the amount set by the Davis-Bacon wage determination or the per hour rate directed by the program Standards, whichever is greater, for each apprentice hour worked on the project, unless otherwise noted in the project contract that Training Contributions are to be paid per hour of the Journeyman as well.

The Training Contributions on 100% Federally funded projects - for every hour worked by the Apprentice ONLY unless stipulated by Contract:

• Electrical program is a minimum of $.90 Training Contributions per hour.
Plumbing program is a minimum of $.90 Training Contributions per hour.
• HVAC program is a minimum of $.90 Training Contributions per hour.
• Sheet Metal program is a minimum of $.90 Training Contributions per hour.
• Electronic Systems Technician/Voice Data Video (Low Voltage) program is a minimum of $.90 Training Contributions per hour.

*Note: Davis-Bacon wage determinations are now publicly available online without charge or the need for special user Ids or accounts. The database is maintained by the Government Printing Office (GPO) and is indexed and searchable by state, construction type or wage determination number. It is located at dol.gov. If your company performs federally financed construction, please make note of this website for future reference.

Each year on March 1, companies are to look at the Public Works Determination issued on August 22 of the previous year, then review for expiration date and/or increase amounts and apply any increases to determine the Private Works wage. If there are questions, contact the DLSE at 510-285-2118 and ask what the total package wage rate is for a Journeyman in a specific county on March 1 of the current year.

On February 17, 2002, major changes to the Rules and Regulations governing the operation of all construction apprenticeship programs in the state of California became effective. A major change that impacted our members is the requirement to pay apprentices Prevailing Wage rates on all Private Works Projects. On February 8, 2002, the DAS determined that the program sponsor’s Unilateral Apprenticeship Committee (UAC) must select the method that all Subscribing Employers (SE) must comply with the effective date of February 17, 2002. The UAC's have chosen method 1 through 6 for ABC SoCal members to comply with Regulation 208. To read the Regulation in its entirety, click here.

Below is the list of the Private Works Projects regulation changes that must be adhered to:

1. The minimum hourly wage package shall increase for each period of apprenticeship in equal percentage amounts.
2. The starting percentage must be 40% and the final percentage must be at least 80% of the prevailing per diem wage package for journeyman in the apprenticeable occupation and geographic area of the project, using the rate effective on the immediately preceding date of March 1. At least 65% of the minimum hourly wage package must be paid to the apprentice as taxable wages.
3. If there is no prevailing hourly wage determination for journeyman for your occupation and geographic area, a starting wage rate will be decided by the sponsoring program’s UAC with approval of the Chief of Division of Apprenticeship Standards.
4. Where an employer elects to satisfy a portion of the hourly wage package by employer payments for employee benefits, the payment must be verifiable and the cost of the benefit/s must be reasonably related to the amount of the contribution/s.
5. Where an employer elects not to satisfy a portion of the apprentice's hourly wage package by the employer payments for employee benefits, the employer shall pay the entire hourly wage package to the apprentice. Where an employer elects to satisfy a portion of the apprentice's hourly wage package by employer payments for employee benefits, the employer shall pay the remainder of the apprentice's hourly wage package to the apprentice.
6. The starting hourly wage package for the first-period apprentices of not less than 40 percent of the prevailing per diem wage package for journeymen in the apprenticeable occupation and geographic area of the project, as determined by the Director of Industrial Relations for purposes of Labor Code 1720 et seq., using the rate effective on the immediately preceding March 1. At least 65 percent of this minimum hourly wage package must be paid to the apprentice as taxable wages. The starting calculation is to be based on Regulation 208 guidelines on the Journeyman's Total Hourly Package.

Program Period/Hours

• Electrical program is a nine (9) period / 8,000 hour program.
• Plumbing program is an eight (8) period / 7,200 hour program.
• HVAC program is an eight (8) period / 8,000 hour program.
• Sheet Metal program is an eight (8) period / 6,500 hour program.
• Low Voltage program is an eight (8) period / 4,800 hour program.

A Subscribing Employer utilizing apprentices on a Privately funded project must pay apprenticeship Training Contributions in the amount set by the Director of Industrial Relations or the per hour rate directed by the program Standards, whichever is greater, for each apprentice hour worked on the project.

The Training Contributions on Privately funded projects - for every hour worked by the Apprentice is:

• Electrical program is a minimum of $.90 Training Contributions for both.
• Plumbing program is a minimum of $.90 Training Contributions for both.
• HVAC program is a minimum of $.90 Training Contributions for both.
• Sheet Metal program is a minimum of $.90 Training Contributions for both.
• Electronic Systems Technician/Voice Data Video (Low Voltage) program is a minimum of $.90 Training Contributions for both.

Note:According to the Division of Apprenticeship Standards the difference between the Training Contributions noted in the DLSE determinations and the required ABC SoCal Training Contributions can be taken out of the total benefit package as long as the Basic Hourly rate is not affected. Training Contributions are made payable to the ABC SoCal Merit Training Trust Fund. State Training Contributions are never paid to an employee. If a Training Contribution form is needed, please contact the ABC SoCal office at 714-779-3187. Subscribing Employers do not need to fill out a CAC-2 since the Training Contributions are submitted to ABC SoCal and not to the State.

Effective June 1, 2022 - The insurance premium for each Apprentice is $6.60 per hour hours worked. For those determinations listing less than the $6.60 H/W rate, it is the contractor’s responsibility to adjust the apprentice pay to make up the difference between the posted amount and the actual amount.

Each apprentice will be provided with the Medical/ Dental/ Vision/ Life Insurance benefits, which shall be arranged by the specific Unilateral Apprenticeship program and by the ABC SoCal Benefit Trust. Payment must be paid to POLYCOMP with the designee of the "ABC SoCal Benefit Trust" for such insurance.

Please refer to ABC the website under Notice of Understanding for possible rate changes on or around every June 1. Any increase/decrease in premium rates will be cause to re-adjust pay rates on all existing/future projects.

Straight Time and Over Time Hours
Subscribing Employers must adhere to all laws/regulations governing this topic. This includes the specific wage determinations for that project. Read all determination footnotes published by the State for accurate rates.

Upgrade Procedures - (Wage Increases)
It is the sole responsibility of the Subscribing Employer to track apprentice OJT hours and to provide pay upgrades as dictated by the State or Federal wage determination governing each project, unless otherwise directed by ABC SoCal. Additional footnotes are provided at the bottom of the individual apprentice wage rate pages.

Upgrade on Hold Information
If an ABC SoCal apprentice has a HOLD placed on his/her upgrade, the appropriate Subscribing Employer and apprentice will be notified when the HOLD is put in place and when the HOLD is removed. If a company does not receive a HOLD notice an increase is to be given as described under the “Upgrade Procedures.”

Maximum Ratio is 1:1

The ratio of apprentices covered by the State and Federal Standards is ONE apprentice hour for ONE journeyman hour. A qualified employer may employ one apprentice when at least one journeyman is regularly employed, and one additional apprentice for each one additional skilled regularly employed journeyman.

Minimum Ratio is 5:1
The ratio of apprentices covered by Regulation 230.1 is ONE apprentice hour for FIVE journeyman hours. A qualified employer may employ one apprentice when at least one certified journeyman is regularly employed, and one additional apprentice for each one additional skilled regularly employed certified journeyman.