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1. Prevailing wage requirements apply to public works projects with a contract value of at least:

California prevailing wage law applies to public works contracts of $1,000 or more. There is no exemption for small public works projects.

2. Who determines the prevailing wage rates that must be paid on a California public works project?

The Director of the Department of Industrial Relations (DIR) determines prevailing wage rates by craft, classification, and locality. Contractors must pay the rate in effect when the work is performed.

3. Before a contractor may bid on or be awarded a public works contract, the contractor must be registered with:

In addition to holding a CSLB license, a contractor must register annually with the DIR before bidding on or being awarded a public works contract.

4. On a public works project, contractors must submit certified payroll records to:

Contractors on public works must keep accurate certified payroll records and furnish them to the Labor Commissioner, generally through the DIR's online electronic system.

5. The prevailing wage that must be paid on a public works project consists of:

The prevailing wage is made up of a basic hourly rate plus employer payments for fringe benefits such as health care, pension, and training. The total package must meet the DIR determination.

6. On a public works contract that exceeds $25,000, the prime contractor must furnish:

Because subcontractors and suppliers cannot place a lien on public property, the prime contractor on a public works contract over $25,000 must provide a payment bond guaranteeing they are paid.

7. An unpaid subcontractor on a public works project can compel the public agency to withhold project funds by serving:

Since public property cannot be liened, an unpaid claimant on a public works project serves a stop payment notice on the public agency, which must then withhold enough project funds to cover the claim.

8. On most public works projects, contractors are required to:

Public works contractors must request apprentices from a state-approved apprenticeship program and employ them on the project, supporting the training of the next generation of skilled workers.

9. If a contractor pays less than the required prevailing wage on a public works project, the contractor may face:

A contractor who underpays prevailing wage is liable for the wage shortfall plus penalties assessed by the Labor Commissioner, and may be barred (debarred) from bidding on future public works.

10. A contractor on a public works project must post the applicable prevailing wage determination:

The contractor must post the prevailing wage determination at a conspicuous place at the job site so workers can see the rates that apply to their craft.

11. Which project is generally considered 'public works' subject to prevailing wage?

A public works project is construction, alteration, demolition, or repair work paid for in whole or in part out of public funds. Prevailing wage and related rules attach because public money is involved.

12. On a public works project, the bond that guarantees the project will be completed according to the contract is the:

A performance bond guarantees the project will be finished according to the contract. It is separate from the payment bond, which guarantees that workers and suppliers are paid.

13. A contractor's registration with the DIR to perform public works must be:

DIR public works registration is an annual registration with an annual fee. A contractor must keep it current to remain eligible to bid on and perform public works.

14. On a covered public works project, prevailing wage must be paid to:

Prevailing wage must be paid to all workers employed on the public works project — by the prime contractor and by every subcontractor — regardless of union membership.

15. On public works, the standard apprentice-to-journeyman ratio a contractor must meet is at least:

Public works contractors must employ apprentices at a ratio of not less than one hour of apprentice work for every five hours of journeyman work, using apprentices from a state-approved program.

16. On a public works project, a worker who works more than 8 hours in a single day must generally be paid:

Labor Code §1815 requires that work performed on public works in excess of 8 hours per day be compensated at not less than 1.5 times the basic hourly prevailing rate. Daily overtime applies even if the weekly total is under 40 hours.

17. Under Labor Code §1813, what penalty applies to a contractor for each worker for each day that worker is required to work more than the legal maximum hours without proper overtime pay on a public works project?

Labor Code §1813 sets a forfeiture of $25 for each worker for each calendar day during which that worker is required or permitted to work more than the legal maximum hours without the required overtime pay. This penalty is in addition to paying the overtime owed.

18. Why can an unpaid subcontractor NOT record a mechanics' lien against a completed public school building?

A mechanics' lien works by allowing a forced sale of the property to satisfy the debt. Because public property is held for public use and cannot be sold off to pay a private claim, liens cannot attach to it — which is why the law instead provides payment bonds and stop payment notices on public works.

19. A contractor bidding on a city public works contract is asked to submit a bid bond. The primary purpose of a bid bond is to:

A bid bond protects the public agency by guaranteeing that, if the contractor is the successful low bidder, it will sign the contract and furnish the required performance and payment bonds. If the bidder backs out, the bond covers the extra cost of awarding to the next bidder.

20. In addition to penalties and back wages, a contractor who willfully violates prevailing wage law on public works may be subject to debarment, which means the contractor:

Debarment is a period — typically up to three years — during which a contractor (and its responsible officers) is prohibited from bidding on or being awarded any public works contract. It is a separate consequence from monetary penalties and back-wage liability.

21. When a member of the public requests a contractor's certified payroll records from a public works project, the records that are released to the public must have which information redacted?

Labor Code §1776 requires certified payroll to be available for inspection, but copies provided to the public must have personal identifying information — such as each worker's name, address, and social security number — redacted to protect worker privacy.

22. A general contractor on a public works job pays a laborer the basic hourly rate in cash but provides NO health, pension, or training contributions. To comply with the prevailing wage determination, the contractor must:

Under Labor Code §1773.1, the prevailing wage is the basic hourly rate plus employer payments for fringe benefits. If the employer makes no qualifying fringe-benefit contributions, the dollar value of those benefits must be paid to the worker as additional cash wages so the total package meets the determination.

23. Which type of insurance coverage is a contractor required to carry for its employees on a California public works project, just as on private jobs?

Any contractor with employees in California must carry workers' compensation insurance, and this requirement applies fully to public works. A public agency cannot award the contract to a contractor that lacks valid workers' compensation coverage.

24. A contractor on a public works project knowingly fails to employ apprentices in the required ratio. The most likely consequence is:

Violating the apprenticeship requirements of Labor Code §1777.5 exposes the contractor to civil penalties under §1777.7, and a knowing violation can also make the contractor ineligible to bid on or be awarded public works contracts for a period of time.

25. On a public works project, a subcontractor who has stopped work serves a stop payment notice on the public entity. The notice must generally be served:

Stop payment notices on public works are time-limited. A claimant must serve the notice within the statutory window tied to completion or cessation of the work (a notice of completion or acceptance triggers a shorter deadline); serving late means the public entity is not obligated to withhold funds.

26. The payment bond required on a public works contract over $25,000 must be issued by:

The payment bond on public works must be furnished by an admitted surety insurer — a surety company licensed and authorized to transact surety business in California. This ensures the bond is backed by a financially responsible, regulated guarantor.

27. Which prevailing wage determination applies to the workers on a public works project?

Under Labor Code §1773 and the DIR's determinations, workers must be paid the prevailing wage rate in effect for their craft and locality at the time the work is performed. Determinations are issued by craft and geographic area and can change over the life of a project.

28. Within how many days after award of a public works contract must the awarding body provide a project notice (DIR PWC-100 filing) identifying the project to the Department of Industrial Relations?

Labor Code §1773.3 requires the awarding body to file a separate notice (commonly the PWC-100) with the DIR within 5 days of awarding any public works contract, providing the project identification number used for certified payroll reporting.

29. Under Labor Code §1813, a contractor on a public work who requires a worker to labor more than 8 hours in a day or 40 hours in a week without proper overtime pay is subject to a statutory penalty of how much per worker per day of violation?

Labor Code §1813 imposes a $25 penalty per worker for each calendar day during which the worker was required or permitted to work more than the legal hours without paying the required overtime rate on public works.

30. A contractor who knowingly commits a second violation of apprenticeship requirements within a 3-year period under Labor Code §1777.7 may be debarred from bidding on public works for up to:

Labor Code §1777.7 authorizes debarment from bidding on or being awarded public works contracts for up to 3 years for a knowing second violation of apprenticeship standards within a 3-year period, in addition to civil penalties.

31. On a California public works project, a subcontractor who has not been paid wishes to file a stop payment notice against funds held by the awarding body. The notice must generally be served no later than how many days after recording of a notice of completion or cessation?

Under Civil Code §9356 and §9558, a claimant other than the direct contractor must serve a stop payment notice within 30 days after recording of a notice of completion, acceptance, or cessation on a public work; if no such notice is recorded, the deadline extends to 90 days after actual completion or cessation.

32. Maria's masonry company is bidding on a $1,500 project to repair a privately owned strip mall. The owner is paying entirely with private funds. Are prevailing wages required?

Labor Code §1720 defines public works as construction paid for in whole or in part out of public funds. A privately owned, privately funded project is not a public work and §1771's prevailing wage requirement does not apply.

33. DIR's prevailing wage determinations on public works are issued by craft and locality and are generally updated:

Under Labor Code §1773, the Director of Industrial Relations determines per-craft, per-county prevailing wage rates and publishes general determinations on a semi-annual schedule (typically February 22 and August 22 each year), with special determinations as needed.

34. Under current Labor Code §1776 procedures, how must contractors on most California public works projects submit their certified payroll records to the Labor Commissioner?

Labor Code §1776 and DIR regulations require contractors on public works projects monitored by the DIR to submit certified payroll records electronically through the DIR's eCPR system, generally at least monthly while work is being performed.

35. If a DIR audit on a public works project finds that a contractor underpaid prevailing wages, what is the awarding body authorized to do under Labor Code §1726?

Labor Code §1726 directs the awarding body, upon notification of an underpayment, to withhold from progress or final payments the amounts assessed by the Labor Commissioner for unpaid prevailing wages, statutory penalties, and forfeitures until the matter is resolved.

36. Under Labor Code §1735, a contractor on a public works project who refuses to hire a qualified worker because of the worker's race, national origin, or sex:

Labor Code §1735 prohibits discrimination on public works on the basis of race, religious creed, color, national origin, ancestry, physical disability, medical condition, marital status, sex, age, or sexual orientation, and imposes a forfeiture for each offense in addition to other remedies.

37. Under Labor Code §1771.4, when a contractor is awarded a public works project subject to DIR compliance monitoring, the contractor must post job-site notices regarding:

Labor Code §1771.4 requires contractors on DIR-monitored public works to post job-site notices about prevailing wage rates and workers' rights as specified by the DIR, in addition to the certified payroll and registration requirements.

38. A material supplier on a $400,000 California public works project has not been paid by the subcontractor that ordered the materials. To recover from the payment bond required by Civil Code §9550, the supplier should:

Mechanics' liens cannot attach to public property. Civil Code §9550 requires the prime contractor on public works over $25,000 to furnish a payment bond protecting laborers and material suppliers, who recover unpaid sums by making a timely written claim on that bond.

39. On a public works job, an electrical contractor employs 5 journeyman electricians for a full 40-hour week (200 journeyman hours). Under Labor Code §1777.5's standard 1:5 ratio, the minimum apprentice hours the contractor must employ that week is:

The §1777.5 ratio requires at least 1 hour of apprentice work for every 5 hours of journeyman work. With 200 journeyman hours, the contractor must employ apprentices for at least 200 ÷ 5 = 40 hours, drawing from a state-approved apprenticeship program.

40. A contractor is awarded a $200,000 public works contract subject to DIR compliance monitoring. To whom must the contractor furnish electronic copies of certified payroll records?

Under Labor Code §1771.4, public works projects monitored by DIR require contractors to submit certified payroll records (CPRs) electronically to the Labor Commissioner through DIR's online eCPR (electronic Certified Payroll Reporting) system. Submission directly to the awarding body alone is insufficient because §1771.4 specifically channels enforcement through DIR. The county recorder handles liens and notices, not payroll, and local building officials oversee code compliance, not wage compliance. Failure to upload CPRs to DIR can trigger penalties under Labor Code §1776(g).

41. A contractor on a covered public works project must contract with an approved apprenticeship program by submitting which form to the program before starting work?

Under Labor Code §1777.5 and Title 8 CCR §230, contractors awarded public works contracts must give written notice of the award by submitting a DAS-140 'Public Works Contract Award Information' form to the apprenticeship committee in each craft and locality of the project within 10 days of award (and before construction begins). The DAS-1 is the apprentice registration form, not the contract-award notice. The PWC-100 is filed by the awarding body, not the contractor, to register the project with DIR under §1773.3. Failure to submit DAS-140 is a §1777.7 violation that can trigger penalties and debarment.

42. If no apprenticeship program in the craft and county dispatches apprentices when requested by a public works contractor, the contractor must:

Under Labor Code §1777.5 and Title 8 CCR §230.1, the contractor must request dispatch of apprentices from the applicable apprenticeship committee using the DAS-142 form at least 72 hours (excluding Saturdays, Sundays, and holidays) before apprentices are needed on the job. If the committee fails to dispatch, the contractor's good-faith request creates a record of compliance, and the contractor may then hire from another source without violating the ratio. Double wages and apprentice-rate substitutions are not authorized remedies, and waivers are issued by DAS (not the CSLB Registrar) under narrow §1777.5(o) criteria.

43. Certified payroll records on a public works project must be retained by the contractor for at least how long?

Labor Code §1776(a) requires each contractor and subcontractor to keep accurate certified payroll records showing name, address, SSN (last 4 digits on released copies), work classification, straight time and overtime hours, and actual per diem wages paid to each worker. These records must be kept on the jobsite and made available for inspection upon request, and retained at least three years after the work is completed. The shorter retention options are insufficient under §1776, and tying retention to the awarding body's release of retention funds confuses payroll records with construction retention under Public Contract Code §7107.

44. Under Labor Code §1771.5, a public agency may exempt a public works project from prevailing wage requirements only if the project does not exceed:

Labor Code §1771.5 allows an awarding body to exempt projects from prevailing wage only if it has adopted a DIR-approved labor compliance program AND the project is $25,000 or less for new construction, or $15,000 or less for alteration, demolition, repair, or maintenance. The $1,000 figure is the general threshold under §1771 above which prevailing wages always apply (with no agency exemption available). The $50,000 and $100,000 options are fabricated thresholds that do not exist in the statute, and small-business status does not waive prevailing wage.

45. California's general prevailing wage requirement applies to public works projects exceeding what threshold?

Labor Code §1771 establishes the baseline rule that prevailing wages must be paid on all public works projects of more than $1,000. The higher $25,000/$15,000 thresholds in option D apply only to awarding bodies that have adopted an approved labor compliance program under §1771.5; without such a program, the $1,000 default of §1771 applies. The $500 and $5,000 figures are not statutory thresholds. This $1,000 floor is one of the most heavily tested numbers on the Business & Law exam.

46. Under Labor Code §1775, what is the maximum statutory penalty per worker per day for a contractor's willful underpayment of prevailing wages on a public works project?

Labor Code §1775(a) authorizes the Labor Commissioner to assess a civil penalty of up to $200 per worker per calendar day for each prevailing-wage violation, in addition to the wage differential owed to the worker. The amount is set considering the gravity of the offense and prior history; willful or repeat violators face the maximum. Option B understates the cap and adds a non-existent project ceiling. The 10%-of-contract figure is not in §1775. Treble damages are a Labor Code §218.6/§1194.2 concept for unpaid wages and liquidated damages generally, not the §1775 prevailing-wage penalty.

47. On a California public works contract, after the awarding body accepts the work as complete, retention proceeds must generally be released to the prime contractor within:

Public Contract Code §7107 requires public agencies to release retention proceeds to the prime contractor within 60 days after the date of completion of the work, and primes must pay their subs within 7 days after receipt. Wrongful withholding triggers a charge of 2% per month (about 24% per year) on improperly withheld amounts, plus attorneys' fees in the resulting action. The 30-day option confuses retention release with general progress payment timing, and the 90/120-day options exceed the §7107 statutory window.

48. Under California's Subletting and Subcontracting Fair Practices Act, a prime contractor bidding on a public works project must list each subcontractor whose work exceeds:

Public Contract Code §4104 (the Subletting and Subcontracting Fair Practices Act) requires the prime to list in its bid the name, business location, California contractor license number, DIR registration number, and portion of work for each subcontractor performing work greater than one-half of one percent (0.5%) of the prime's total bid (with a special 1% rule for street/highway work over $1 million). The other thresholds are not in the statute. Failure to list correctly can lead to 'bid shopping' penalties and even forfeiture of the contract or license discipline under §4110.

49. After bid opening on a public works project, the prime contractor wants to substitute a different subcontractor for one listed in the bid. Under Public Contract Code §4107, the substitution is generally permitted only if:

Public Contract Code §4107 lists specific grounds for substituting a listed subcontractor (refusal to execute the subcontract, bankruptcy, failure to be properly licensed, failure to perform, etc.) and requires the awarding body to give the listed sub written notice of the proposed substitution and at least 5 working days to object and request a hearing. Bid shopping for a lower price is not a permissible ground. The 'kill fee' option misstates the rule; consent of the listed sub is not required if statutory grounds exist, but due process is. Pre-execution substitution without consent or grounds is also prohibited.

50. Under Labor Code §1777.5 and Title 8 CCR §230.1, the apprentice-to-journeyman ratio on a public works project for the craft in question is generally:

Labor Code §1777.5(g) and Title 8 CCR §230.1 require contractors on public works projects to employ apprentices in a ratio of at least one hour of apprentice work for every five hours of journeyman work performed in the craft (i.e., 1:5), unless the approved apprenticeship standard for the craft specifies a different ratio. The ratio is calculated over the life of the project, not per daily shift. Failure to meet the ratio (without a valid DAS-142 dispatch request) triggers penalties under §1777.7 and possible debarment. The 1:1, 2:1, and 'no ratio' options misstate the rule and are common distractors.

51. California's prevailing wage on public works projects, under Labor Code §1773.1, consists of:

Labor Code §1773.1(a) defines the prevailing 'per diem wages' to include the basic hourly rate plus employer payments to or on behalf of the worker for health/welfare, pension, vacation/holiday, apprenticeship/training, worker protection/assistance committees, and industry-advancement/CBA administrative fees. These employer payments may be made in cash to the worker or paid into a benefit fund. The Director of DIR sets the prevailing rates by craft and locality under §1773. Cash-only or arbitrary-fringe options misstate the rule. Failure to make the full prevailing wage (including the fringe components) is a §1775 violation up to $200 per worker per day plus restitution.

52. A Project Labor Agreement (PLA) on a California public works project is generally:

Public Contract Code §2500 sets baseline statutory criteria for valid PLAs in California: nondiscriminatory access for union and non-union bidders, recognition of workers' right to choose representation, no-strike/no-lockout provisions, binding effect on all contractors, and procedures for labor disputes. SB 922 (2011) and SB 829 (2012) further restrict state funding to charter cities that prohibit PLAs on locally funded projects. PLAs are NOT prohibited, nor limited to federal projects, nor universally required. The awarding body has discretion under §2500 to use a PLA after making the required findings, typically of project complexity or scale.