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Public Works

86 questions
1. Prevailing wage requirements apply to public works projects with a contract value of at least:
a.$500
b.$1,000✓
c.$15,000
d.$25,000

California prevailing wage law applies to public works contracts of more than $1,000; Section 1771 itself excepts public works projects of $1,000 or less. Above that line the only further relief is conditional: under §1771.5(a) an awarding body that the Director of Industrial Relations has approved to enforce a labor compliance program may choose not to require prevailing wage on a project of $25,000 or less for construction, or $15,000 or less for alteration, demolition, repair or maintenance. The same two figures separately govern DIR registration under §1771.1(n).

Labor Code §1771
2. Who determines the prevailing wage rates that must be paid on a California public works project?
a.The contractor, subject to the awarding body's approval
b.The Director of the Department of Industrial Relations✓
c.The awarding public agency, in its call for bids
d.The local city council, by ordinance each year

Labor Code §1770 and §1773 make the Director of the Department of Industrial Relations determine the general prevailing rate for each craft and locality, and the rate in effect when the work is performed is the one owed. A contractor cannot set the rate even with the agency's blessing. The awarding body must state in its call for bids that the rates apply, but it copies the Director's determination rather than writing its own. A city council sets its own budget, not the wage determination.

Labor Code §1770; §1773
3. Before a contractor may bid on or be awarded a public works contract, the contractor must be registered with:
a.The CSLB, which also runs the public works registry
b.The local building department that issues the permit
c.The Department of Industrial Relations (DIR)✓
d.The U.S. Department of Labor, under Davis-Bacon

Labor Code §1725.5 requires annual registration with the DIR, and the registration must be current before the contractor bids, is listed on a bid, is awarded work, or performs covered public work. The CSLB issues the licence but runs no public works registry, so the first option invents a programme. The building department issues permits and inspects; it has no role in wage compliance. The U.S. Department of Labor administers Davis-Bacon on federally funded jobs, not California registration.

Labor Code §1725.5
4. On a public works project, contractors must submit certified payroll records to:
a.The CSLB, with the licence renewal each year
b.The IRS, with the quarterly employment return
c.The property owner, before each progress payment
d.The Labor Commissioner, generally through the DIR✓

Labor Code §1776 requires certified payroll to go to the Labor Commissioner, and on a DIR-monitored job §1771.4(a)(3) makes that submission electronic and at least monthly. The CSLB collects renewal fees and never sees payroll. The IRS receives employment tax returns, which report totals to the government rather than certified per-worker records for a project. On public work the owner is the public agency, and it receives records under §1776(b) as the awarding body, not as an owner approving progress payments.

Labor Code §1776(b); §1771.4(a)(3)
5. The prevailing wage that must be paid on a public works project consists of:
a.The state minimum wage only
b.Whatever the contractor and worker agree to
c.A basic hourly rate plus fringe benefits✓
d.The federal minimum wage plus overtime

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.

Labor Code §1773.1
6. On a public works contract that exceeds $25,000, the prime contractor must furnish:
a.A mechanics lien recorded against the public worksite
b.A payment bond from an admitted surety insurer✓
c.A licence bond doubled for public projects
d.A CSLB disciplinary bond filed with the Registrar

Civil Code §9550 requires the direct contractor on a public works contract over $25,000 to give a payment bond before work begins, and §9554(a) requires an admitted surety insurer to execute it; it exists because subcontractors and suppliers cannot lien public property. A mechanics lien is the private-works remedy and cannot attach here at all. The CSLB licence bond is a $25,000 bond that answers to injured parties generally and is not doubled for public work. The disciplinary bond under B&P §7071.8 is imposed as a condition of licence reinstatement, not by the public works contract.

Civil Code §9550; §9554(a)
7. An unpaid subcontractor on a public works project can compel the public agency to withhold project funds by serving:
a.A stop payment notice✓
b.A mechanics' lien
c.A cease and desist letter
d.A Cal/OSHA complaint

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.

Civil Code §9358
8. On most public works projects, contractors are required to:
a.Hire only union members for every covered craft on the site
b.Request and employ apprentices from an approved program✓
c.Pay double the prevailing wage to apprentices on site
d.Use only workers who live in the project county

Labor Code §1777.5 requires the contractor to give the approved apprenticeship committee notice of the award on a DAS-140 under 8 CCR §230, request dispatch, and employ apprentices at the required ratio. Union membership is irrelevant; the programme, not the union, dispatches. Apprentices are paid the apprentice rate in the determination for their period of training, never double the journeyman rate. No residency rule exists: the rate is set by county, but the workers need not live there.

Labor Code §1777.5; 8 CCR §230
9. If a contractor pays less than the required prevailing wage on a public works project, the contractor may face:
a.A written warning from the Labor Commissioner only
b.No liability, since the worker agreed to the rate
c.Automatic revocation of the contractor's CSLB licence
d.Back wages plus penalties the Commissioner sets✓

Labor Code §1775(a) makes the contractor pay the wage difference and adds a civil penalty of up to $200 per worker per calendar day, which the Labor Commissioner assesses and the awarding body withholds under §1726. The statute provides no warning-only disposition. A worker cannot bargain away the prevailing rate, so consent is no defence. Licence revocation is a separate CSLB proceeding that may follow a referral, and it is never automatic.

Labor Code §1775(a); §1726
10. A contractor on a public works project must post the applicable prevailing wage determination:
a.At the contractor's principal office only
b.At the awarding body's own office only
c.At a conspicuous place at each job site✓
d.Nowhere; posting is not required

Labor Code §1773.2 makes the awarding body specify the rates in the call for bids and the CONTRACTOR post the applicable determination at each job site, in a place the crew can see, so a worker can check the rate for their own craft. That split of duties is what option (b) gets wrong: the awarding body's own copy satisfies the awarding body's duty and puts nothing in front of the workers. The principal office fails for the same reason - the workers are not there. And posting is mandatory, so the last option states the opposite of the rule.

Labor Code §1773.2

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11. Which project is generally considered 'public works' subject to prevailing wage?
a.A homeowner's private kitchen remodel paid for in cash
b.Construction paid in whole or part with public funds✓
c.Any commercial building costing more than $25,000
d.A privately funded apartment complex on city-owned land

Labor Code §1720(a)(1) defines public works by the source of the money: construction, alteration, demolition, installation or repair done under contract and paid for in whole or in part out of public funds. A homeowner's own remodel involves no public money. Cost alone decides nothing, so the $25,000 commercial building is outside the definition unless public funds pay for it. Public land is not the test either: a privately funded complex on a city parcel is not a public work, while a privately owned building financed with a public subsidy can be.

Labor Code §1720(a)(1)
12. On a public works project, the bond that guarantees the project will be completed according to the contract is the:
a.The payment bond given before work starts
b.The performance bond given at the award✓
c.The licence bond the CSLB requires
d.The bid bond filed with the offer

The performance bond runs to the public agency and guarantees that the work will be completed according to the contract, with the surety arranging completion or paying damages on a default. The payment bond required by Civil Code §9550 before work starts protects subcontractors and suppliers instead, since they cannot lien public property. The CSLB licence bond is a condition of licensure and answers to injured parties generally, not to this contract. The bid bond guarantees only that the successful bidder will sign and post the other bonds.

Public Contract Code §20170; Civil Code §9550
13. A contractor's registration with the DIR to perform public works must be:
a.Obtained once, never renewed
b.Renewed with the CSLB licence
c.Obtained anew for each project
d.Renewed each year for a fee✓

Labor Code §1725.5 makes DIR public works registration an annual registration carrying an annual fee, and it must be current whenever the contractor bids, is listed, is awarded work, or performs. A one-time registration would defeat the annual fee. The CSLB licence runs on its own two-year cycle and the two renewals are unrelated. Registration attaches to the contractor rather than to the job, so it is not obtained again for each project.

Labor Code §1725.5(a)
14. On a covered public works project, prevailing wage must be paid to:
a.All workers on the project, subs' included✓
b.Only the members of a labor union on the crew
c.Only workers paid less than minimum wage
d.Only the prime contractor's own employees

Labor Code §1772 treats every worker employed on a public work as employed on it, and §1774 binds the contractor and every subcontractor to pay not less than the prevailing rate. Union membership decides nothing, because the rate is set by craft and county. The minimum wage is a floor for all employment and has no bearing on who is owed the prevailing rate. Confining the duty to the prime's own payroll is the error §1774 exists to close, since most public works labour is subcontracted.

Labor Code §1772; §1774
15. On public works, the standard apprentice-to-journeyman ratio a contractor must meet is at least:
a.One apprentice hour for every journeyman hour worked
b.One apprentice hour for every ten journeyman hours
c.One apprentice for the whole project, at least
d.One apprentice hour to each five journeyman hours✓

Labor Code §1777.5(g) and 8 CCR §230.1 require at least one hour of apprentice work for every five hours of journeyman work in the craft, measured over the duration of the project rather than shift by shift, unless the approved standard for that craft sets another ratio. One-for-one doubles the duty. One in ten halves it. A single apprentice for the whole project is not a ratio at all: the requirement scales with the journeyman hours actually worked.

Labor Code §1777.5(g); 8 CCR §230.1
16. On a public works project, a worker who works more than 8 hours in a single day must generally be paid:
a.At least 1.5 times the basic hourly prevailing rate✓
b.The straight-time prevailing rate for all hours worked
c.Nothing extra until the week passes 40 hours
d.Double the prevailing rate for the hours over 8

Labor Code §1811 sets eight hours as a day's work on public works and §1815 requires at least one and one-half times the basic hourly prevailing rate for hours worked beyond eight in a day or 40 in a week. Straight time for all hours is exactly the violation §1815 forbids, and it also triggers the §1813 forfeiture of $25 per worker per day. Waiting for the 40-hour week misses the daily trigger: the ninth hour on Monday is overtime even in a short week. Double time is not the §1815 rate.

Labor Code §1815; §1811
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?
a.$10 per worker per day
b.$25 per worker per day✓
c.$100 per worker per day
d.$200 per worker per day

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.

Labor Code §1813
18. Why can an unpaid subcontractor NOT record a mechanics' lien against a completed public school building?
a.Mechanics liens were abolished in California long ago
b.Public property cannot be sold to satisfy a lien✓
c.Only the direct contractor may record a lien on the job
d.Liens are barred on any project costing over $25,000

A mechanics lien works only because the property can be sold at foreclosure to satisfy the debt; land held for public use cannot be sold that way, so the lien has nothing to attach to, and the legislature substituted the payment bond of Civil Code §9550 and the stop payment notice. Mechanics liens are alive and well on private work, so the first option is simply false. Subcontractors and suppliers, not just the direct contractor, hold lien rights on private jobs. And no dollar threshold bars liens: the $25,000 figure is the point at which a public works payment bond becomes compulsory.

Civil Code §8000; §9550
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.Guarantee the workers and suppliers will all be paid
b.Guarantee the finished work meets code
c.Replace the contractor's CSLB licence bond on the job
d.Guarantee the bidder signs and posts the bonds✓

A bid bond protects the public agency against a bidder that wins and then walks away: it guarantees the bidder will execute the contract and furnish the payment and performance bonds, and the surety covers the extra cost of going to the next bidder. Paying workers and suppliers is the payment bond's job under Civil Code §9550. Code compliance is enforced by inspection and by the performance bond's completion promise, not by the bid bond. The CSLB licence bond is a condition of licensure and is never displaced by a project bond.

Public Contract Code §20170; Civil Code §9550
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:
a.Loses its CSLB licence permanently on the first offense
b.Must pay the state three times the contract value owed
c.Is barred from bidding on public works for a period✓
d.Is barred only from federal jobs, not state ones

Labor Code §1777.1 makes a debarred contractor, and any firm in which it holds an interest, ineligible to bid on, be awarded, or work as a subcontractor on public works for a stated term of one to three years; the term ends and eligibility returns. The CSLB licence is a separate matter and is not revoked by debarment, permanently or otherwise. Treble damages are not the prevailing wage remedy; §1775 adds a per-worker, per-day penalty plus the wage difference. California debarment reaches state and local public works, while federal exclusion is a separate federal process.

Labor Code §1777.1
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?
a.The names of all crafts and classifications worked
b.Each worker's name, address, and social security number✓
c.The hours each worker performed and the wage rates paid
d.The name of the awarding public agency

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.

Labor Code §1776
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:
a.Ignore the fringe part, since the cash base rate is paid
b.Pay the fringe amounts in a lump sum at job's end
c.Report the worker as exempt from the prevailing wage
d.Pay the required fringe values to the worker as wages✓

Under Labor Code §1773.1 the prevailing wage is one package: the basic hourly rate plus employer payments for benefits. An employer that makes no qualifying contributions must pay the dollar value of those benefits to the worker as additional cash wages, so the total meets the determination. Ignoring the fringe portion underpays every hour and is a §1775 violation. Deferring it to the end of the job fails because the obligation attaches to each pay period, not to project closeout. And there is no exemption to report: coverage follows the classification and the work performed.

Labor Code §1773.1(d); §1773.1(a)
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?
a.Title insurance
b.Course-of-construction (builder's risk) insurance only
c.Workers' compensation insurance✓
d.Key-person life insurance

Workers' compensation is the answer, and it follows the employees, not the kind of project: Labor Code §3700 requires every employer to secure it, and B&P §7125(a) makes a current Certificate of Workers' Compensation Insurance, or a Certification of Self-Insurance from the Director of Industrial Relations, a condition precedent to the issuance, reinstatement, reactivation, renewal or continued maintenance of a licence. Until January 1, 2028, §7125(b) lets a licensee with no employees file an exemption statement instead — unless it holds a C-8, C-20, C-22, C-39 or D-49 classification, which must carry coverage regardless; from January 1, 2028 the SB 216 version, postponed by SB 1455 (Stats. 2024, ch. 485), requires coverage of every licensee except a §7029 joint venture with no employees. A public agency therefore cannot award to a contractor whose required coverage has lapsed, because §7125.2 suspends the licence itself. The three wrong answers are real policies that answer other risks: title insurance covers defects in ownership of land, builder's risk covers physical loss to the work under construction, and key-person life insurance pays the business on the death of an owner or manager. None of them pays an injured worker.

B&P §7125(a)-(b) (as amended by Stats. 2024, Ch. 485, Sec. 12; SB 216 version operative 2028-01-01 under Sec. 13); §7125.2; §7029; Labor Code §3700
24. A contractor on a public works project knowingly fails to employ apprentices in the required ratio. The most likely consequence is:
a.Automatic forfeiture of the entire contract price
b.Criminal felony charges against the firm's officers
c.Nothing at all, since the ratio is only advisory
d.Civil penalties and a possible bar on bidding✓

Labor Code §1777.7(a) sets a civil penalty of up to $100 for each full calendar day of noncompliance, up to $300 a day for a knowing second violation within three years, and §1777.1(d)(1) lets the Labor Commissioner deny the right to bid or perform for up to one year, or up to three on a repeat. The contract price is not forfeited; the awarding body withholds only assessed amounts. This is a civil scheme, not a criminal one. And the ratio is mandatory: §1777.5 requires the dispatch request and the ratio, with relief only through the approved-programme procedures.

Labor Code §1777.7(a); §1777.1(d)(1)
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:
a.Within 30 days after a notice of completion is recorded✓
b.Within 90 days of completion, notice recorded or not
c.Only after the agency formally accepts the project
d.At any time, even years after the work is done

Civil Code §9356 sets two windows and only two: 30 days after a notice of completion, acceptance or cessation is recorded, or, if none is recorded, 90 days after completion or cessation. Recording such a notice shortens the period; it never leaves the 90-day branch in place, which is why the second option is the trap. Waiting for formal acceptance can push the claimant past the deadline, and acceptance is itself one of the events that starts the 30-day clock. There is no open-ended right: once the window closes the public entity has no duty to withhold, and §9558 separately cuts off suit on the payment bond six months after the stop-notice period ends.

Civil Code §9356; §9558
26. The payment bond required on a public works contract over $25,000 must be issued by:
a.Any bank the contractor chooses to act as its guarantor
b.The contractor's own insurance agent, acting in person
c.An admitted surety insurer authorised in California✓
d.The awarding public agency, out of project funds

Civil Code §9554(a) requires the payment bond to be executed by an admitted surety insurer, meaning a company the Insurance Commissioner has licensed to transact surety business in this state, so the agency can verify the guarantor's solvency. A bank may issue a letter of credit, but that is not a bond and does not satisfy §9554. An insurance agent sells the bond and does not stand behind it; personal liability of the agent is not security the statute recognises. And the awarding body is the party the bond protects, so it cannot also be the guarantor.

Civil Code §9554(a); Code Civ. Proc. §995.311
27. Which prevailing wage determination applies to the workers on a public works project?
a.The rates in effect on the day the contractor bid the job
b.The rates for the locality and craft when work is done✓
c.The lowest rates published anywhere in the state
d.The rate the agency wrote into its original budget

Labor Code §1773 has the Director determine rates by craft and locality, and the worker must be paid the determination in effect when the work is actually performed, which is why a determination with a later expiration date can raise the rate mid-project. The bid date matters for pricing the job but does not freeze the wage owed. Rates are local by design, so a rate published for another county is irrelevant. And an agency's budget figure binds nobody: the determination, not the estimate, sets the obligation.

Labor Code §1773; 8 CCR §16204
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?
a.Within 24 hours
b.Within 10 days
c.Within 5 days✓
d.Within 30 days

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.

Labor Code §1773.3
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?
a.$10
b.$25✓
c.$100
d.$200

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.

Labor Code §1813
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:
a.6 months
b.1 year
c.2 years
d.3 years✓

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.

Labor Code §1777.1(d)(1)
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?
a.30 days✓
b.60 days
c.90 days
d.120 days

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.

Civil Code §9356
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?
a.Yes, because the contract is over the $1,000 line
b.No, the work is not paid for out of public funds✓
c.Yes, because all California construction requires it
d.Only if the city issues a building permit for the job

Labor Code §1720(a)(1) makes public funding the test: prevailing wage attaches to work done under contract and paid for in whole or in part out of public funds. A privately owned strip mall paid for entirely with private money is not a public work, so the §1771 threshold never comes into play. The $1,000 figure only marks where prevailing wage begins on work that is already public, and it does not convert a private job. No statute imposes prevailing wage on all California construction. A building permit is a code-enforcement act and spends no public money on the project.

Labor Code §1720(a)(1); §1771
33. DIR's prevailing wage determinations on public works are issued by craft and locality and are generally updated:
a.Once every five years
b.Only when the legislature amends the Labor Code
c.Semi-annually (twice each year)✓
d.Daily, based on union dispatch rates

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.

Labor Code §1773
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?
a.By certified U.S. mail to the Labor Commissioner
b.By hand-delivered paper copies to the awarding body
c.By fax to the nearest labor standards office
d.Electronically, through the DIR's eCPR system✓

Labor Code §1771.4(a)(3) requires each contractor and subcontractor on a monitored project to furnish the §1776 records directly to the Labor Commissioner, in an electronic format in the manner prescribed on the department's website, at least once every 30 days while work continues and once more within 30 days of the last day worked. Certified mail reaches the right office in the wrong form. Paper to the awarding body is the common error: the awarding body still receives records on request under §1776(b), but that does not satisfy the §1771.4 duty. Fax is not a prescribed format at all.

Labor Code §1771.4(a)(3); §1776(c)
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?
a.Withhold enough from progress payments to cover it✓
b.Cancel the contract immediately, with no process at all
c.Refer the contractor for criminal prosecution instead
d.Do nothing, since only the DIR may act on this

Labor Code §1726 and §1727 make the awarding body withhold from progress or final payments the wages, penalties and forfeitures the Labor Commissioner has assessed, and hold them until the assessment is resolved, so the money stays available to the underpaid workers. Cancelling the contract is a remedy for breach and is governed by the contract's own default and notice provisions, not by a wage audit. Prevailing wage enforcement is civil, so a criminal referral is not the ordinary route. And the awarding body is not a bystander: withholding is its own statutory duty once it is notified.

Labor Code §1726(a); §1727
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:
a.Has no liability at all, since hiring choices are private
b.Violates the Labor Code and forfeits a statutory penalty✓
c.Must attend training and may keep bidding as before
d.Loses only the right to have retention released

Labor Code §1735 forbids discrimination on public works on the basis of race, religious creed, colour, national origin, ancestry, physical disability, medical condition, marital status, sex, age or sexual orientation, and imposes a forfeiture for each offence on top of any other remedy the worker may have. Private hiring discretion is no defence, because the contractor took public money. Training is a settlement term a party may agree to, not the statutory consequence. And retention release is governed by Public Contract Code §7107, which has nothing to do with discrimination.

Labor Code §1735
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:
a.Only the Cal/OSHA safety posters for the trades on site
b.Only the contractor's CSLB licence number and address
c.Prevailing wage rates and worker rights, per DIR✓
d.Nothing at all, because the posting rule has been repealed

Labor Code §1771.4(a)(2) requires the awarding body, or the prime contractor at its direction, to post job-site notices as prescribed by regulation, and 8 CCR §16451(d) sets out the DIR notice covering the prevailing wage requirement, the duty to keep certified payroll, and where a worker can complain. Cal/OSHA posters are separately required and do not discharge this duty. A licence number belongs on the contractor's vehicles and contracts under B&P §7030.5, not on this notice. The requirement is current, not repealed, and is one of the conditions of DIR monitoring.

Labor Code §1771.4(a)(2); 8 CCR §16451(d)
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:
a.File a mechanics lien against the public building
b.Sue the awarding body directly for breach of contract
c.Wait for the awarding body to release retention
d.Make a timely written claim on the prime's payment bond✓

Civil Code §9550 requires the direct contractor on a public works contract over $25,000 to give a payment bond before starting, and it exists for exactly this claimant: a supplier who dealt with a subcontractor and cannot lien public property. The claim must be made and suit filed within the §9558 window, which closes six months after the stop-notice period ends. A lien on the school or city building (a) is void. The supplier has no contract with the awarding body, so a direct breach claim (b) fails for want of privity. And waiting for retention (c) is the trap: retention released under Public Contract Code §7107 goes to the prime contractor, not to a supplier two tiers down, so the wait runs the §9558 clock out on the only remedy that would have worked.

Civil Code §9550; §9558; Public Contract Code §7107
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:
a.40 apprentice hours✓
b.20 apprentice hours
c.8 apprentice hours
d.0 — apprentices are optional

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.

Labor Code §1777.5
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?
a.The county recorder for the county where the work is
b.The local building official, before each payment
c.Only the awarding body that issued the contract
d.The Labor Commissioner, through the DIR eCPR portal✓

Labor Code §1771.4(a)(3) makes each contractor and subcontractor on a monitored project furnish the §1776 records directly to the Labor Commissioner, electronically, in the manner prescribed on the department's website, at least every 30 days while work continues. Sending them only to the awarding body is the common error: that body still receives records on request under §1776(b), but that does not discharge the §1771.4 duty. The county recorder takes recorded notices, never payroll. Building officials check code compliance, not wages.

Labor Code §1771.4(a)(3)
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?
a.DAS-1, filed within 30 days of project completion
b.PWC-100, sent by the prime to the awarding body only
c.Form A-1-131, sent to CSLB headquarters in Sacramento
d.DAS-140, to each applicable apprentice committee✓

Under Labor Code §1777.5 and 8 CCR §230(a), the contractor gives written notice of the contract award on a DAS-140 to the apprenticeship committee of each craft in the area of the site, within 10 days of the award and before work starts. The DAS-1 is the apprentice's own registration agreement, not a contract-award notice. The PWC-100 is the awarding body's filing with the DIR under §1773.3, not the contractor's. There is no CSLB form in this chain at all; apprenticeship is administered by the Division of Apprenticeship Standards.

Labor Code §1777.5; 8 CCR §230(a)
42. If no apprenticeship program in the craft and county dispatches apprentices when requested by a public works contractor, the contractor must:
a.Pay double the journeyman wage for every slot left unfilled
b.Request a CSLB waiver within 5 days
c.Hire non-union workers at the apprentice rate
d.Send a DAS-142 request at least 72 hours before needed✓

8 CCR §230.1(a) requires the contractor to request dispatch of apprentices from the applicable committee on a DAS-142 at least 72 hours, excluding weekends and holidays, before apprentices are needed on the job; a committee that then fails to dispatch leaves the contractor covered by its documented request. No statute imposes a double journeyman wage for an unfilled slot. Waivers under §1777.5 come from the Division of Apprenticeship Standards, not the CSLB Registrar. And paying anyone the apprentice rate who is not a registered apprentice is itself a prevailing wage violation.

Labor Code §1777.5; 8 CCR §230.1(a)
43. Certified payroll records on a public works project must be retained by the contractor for at least how long?
a.Three years after completion of the work✓
b.Until the awarding body releases the retention
c.Two years after final acceptance of the work
d.One year after the completion notice

Labor Code §1771.4(a)(4) fixes the period at three years after completion of the work, and §1174(d) requires payroll records generally to be kept at least three years, so the two rules agree. The shorter periods would let records disappear while an assessment or a §1741 review is still live. Tying retention of the records to release of the retention money confuses two different things that share a word: retention proceeds are governed by Public Contract Code §7107 and are usually released within 60 days of completion, long before the record-keeping duty ends.

Labor Code §1771.4(a)(4); §1174(d)
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:
a.$1,000 for any public work, with no exception at all
b.$25,000 for construction, $15,000 for repair, with an LCP✓
c.$100,000 for projects awarded to certified small businesses
d.$50,000 for any project funded from local revenue

Labor Code §1771.5(a) lets an awarding body skip prevailing wage only if the Director has approved it to run a labor compliance program, and then only on construction of $25,000 or less, or alteration, demolition, repair or maintenance of $15,000 or less. The $1,000 line is §1771's general floor: below it no prevailing wage is owed at all, so it is not an exemption the agency elects. The $50,000 and $100,000 figures appear nowhere in the statute, and small-business status waives nothing.

Labor Code §1771.5(a); §1771
45. California's general prevailing wage requirement applies to public works projects exceeding what threshold?
a.$500 for any public work
b.$5,000 for new construction
c.$1,000 for all public works (the general statutory threshold)✓
d.$25,000 for new construction and $15,000 for repair/maintenance, regardless of labor compliance program

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.

Labor Code §1771
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?
a.Ten percent of the contract price, however many workers
b.Triple the underpaid wages, payable to the worker
c.$50 per worker per day, capped at $5,000 a project
d.Up to $200 per worker per day, plus back pay✓

Labor Code §1775(a) lets the Labor Commissioner assess up to $200 for each worker for each calendar day of underpayment, on top of the wage difference owed to the worker, with the amount set by the gravity of the offence and the contractor's history. A percentage of the contract price is not in §1775 and would make the penalty independent of how many workers were shortchanged. Treble damages belong to other wage statutes, not to this one. The $50 rate with a $5,000 project cap borrows the shape of the §1771.4 records penalty and applies it to the wrong violation.

Labor Code §1775(a)
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:
a.120 days after final acceptance of the work
b.90 days, with no penalty for a late release
c.30 days, or interest runs at the legal rate
d.60 days after completion, or 2% a month accrues✓

Public Contract Code §7107(c) requires the public entity to release retention within 60 days after the date of completion, and §7107(f) charges 2 percent per month on any amount improperly withheld, in lieu of other interest, plus attorney's fees to the prevailing party in a collection action. The 90- and 120-day answers exceed the statutory window, and the penalty for delay is not optional. The 30-day figure borrows from progress-payment timing; §7107(d) does give the prime seven days to pass the retention down to its subs, which is a different clock.

Public Contract Code §7107(c), (f)
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:
a.$25,000 of work in any single trade or category
b.$10,000 or 5% of the total bid, whichever is more
c.One-half of 1% of the prime contractor's bid✓
d.10% of the prime's bid for a single trade

Public Contract Code §4104(a)(1) requires the prime to set out in its bid the name, place of business, California licence number, DIR registration number and portion of work of each subcontractor whose work exceeds one-half of 1 percent of the prime's total bid. Street and highway work has its own variant — one-half of 1 percent or $10,000, whichever is greater — which is where the $10,000 in another option comes from, but the percentage there is still one-half of 1 percent, not 5 percent. The $25,000 and 10 percent figures are not in the statute; listing wrongly can cost the contract under §4110.

Public Contract Code §4104(a)(1)
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:
a.The listed sub agrees in writing and takes a kill fee
b.The prime notifies the agency and the new sub bids lower
c.The swap happens before the contract is even signed
d.A statutory ground applies and the sub may object to it✓

Public Contract Code §4107(a) permits substitution only on a listed ground — the sub refuses to execute the subcontract, becomes insolvent, fails to perform, is not properly licensed, and so on — and only after the awarding body gives the listed subcontractor written notice and at least five working days to object and request a hearing. A lower price from a replacement is bid shopping, which the Act exists to stop, and notice alone does not authorise it. The listed sub's agreement is not required when a ground exists, and a payment for stepping aside is not one of the grounds. Signing day changes nothing: listing binds from bid opening.

Public Contract Code §4107(a)
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:
a.One apprentice hour per five journeyman hours✓
b.One apprentice for each journeyman on every shift
c.Two apprentices for every journeyman, at all times
d.Whatever ratio the prime finds convenient on the site

Labor Code §1777.5(g) and 8 CCR §230.1 require at least one hour of apprentice work for every five hours of journeyman work in the craft, computed over the duration of the project rather than shift by shift, unless the approved standard for that craft sets a different ratio. One-for-one on every shift both inflates the ratio and applies the wrong measuring period. Two apprentices per journeyman inverts the relationship entirely. And the ratio is not the prime's to choose: missing it without a documented DAS-142 dispatch request draws §1777.7 penalties and possible debarment.

Labor Code §1777.5(g); 8 CCR §230.1(a)

Last reviewed: · editorial process

PrepPass team · Verified against California CSLB · How we review

What's on the California CSLB Law & Business Exam?

The California CSLB Law & Business Exam is administered by the California Contractors State License Board (CSLB). Topic weights below come directly from the official exam blueprint — focus your study on the highest-weighted areas first.

Official source: California Contractors State License Board (CSLB) →

Questions
115 questions — 5 independent prep providers agree; CSLB publishes none.
Time limit
210 minutes
Passing score
Not published by CSLB

Every figure above, with the document it came from and the date we read it →

Topic blueprint

  • 21%
    Contracts & Execution
  • 20%
    Employment
  • 15%
    Business Finances
  • 14%
    Safety
  • 13%
    Business & Licensing
  • 12%
    Insurance & Liens
  • 5%
    Public Works
PrepPass team · Verified against California Contractors State License Board (CSLB) · How we review

How hard is the exam?

Moderate difficulty. The CSLB Law & Business exam runs 3.5 hours and is dense with contract law, payroll rules, and Cal/OSHA safety standards. CSLB publishes neither the question count nor the passing score — you are told the percentage of correct answers you need at the test site.

Recommended study hours
40-80 hours over 4-8 weeks (most candidates)
Published pass rate
57% across all attempts (n = 17,737) — CSLB, reporting to the Legislature, FY 2022/23. The same table gives 52% (n = 14,844) in FY 2019/20, 58% (n = 16,724) in FY 2020/21 and 54% (n = 25,061) in FY 2021/22. CSLB labels every one of them “Overall Pass %”, so none is a first-attempt rate.Source: CSLB — 2024 Sunset Review Oversight Report (PDF), Table 8: Examination Data
Where to focus first
Contracts (largest topic by exam weight) and Cal/OSHA Safety — together these are usually 40%+ of the exam.

Fees and salaries are approximate and change over time. The pass rate above is quoted from the source linked beside it, for the period that source covers — where we have not checked a source, we say so and give no number.

Frequently asked questions

How many CSLB Law & Business practice questions are in this bank?+

1,632 original practice questions across all 7 topics of the CSLB Law & Business exam, with full explanations, and California statute citations on 1,359 of them.

Is the CSLB Law & Business practice free?+

Yes — every practice question, organized by topic with full explanations, is free and needs no signup. The full timed mock exam (mock-readiness score, PDF report and weak-area retest) is free too. None of the practice is paywalled. Separately, PrepPass sells optional downloads — the CSLB Law & Business study guide, a printable cheat sheet, and bundles of them — which you never need in order to practice.

Are these the real CSLB exam questions?+

No. All questions are 100% original prose authored from public-domain sources (California Business and Professions Code, Civil Code, Labor Code, Title 16 CCR). We never copy from real CSLB exams or paid prep providers.

What topics does the CSLB Law & Business exam cover?+

Seven topics: Business Organization & Licensing, Business Finance, Employment Requirements, Insurance & Liens, Contracts & Performance, Public Works, and Safety.

What's the passing score for the CSLB Law & Business exam?+

CSLB does not publish one. It says you will be told at the test site what percentage of correct answers you need, and that the percentage varies by exam; passing candidates are never shown their own score. CSLB does not publish the question count either — prep providers quote figures for both, and those are theirs, not CSLB's. What CSLB does publish is the time: 3.5 hours at a PSI testing center.

Can I take the CSLB exam in Spanish?+

Yes — the official CSLB exam is offered in English and Spanish. Other languages may be available by translator request (4–6 weeks lead time). PrepPass practice questions are available in English, 中文, and Español.

Does PrepPass track which questions I get wrong?+

Yes — sign up free and the 'My mistakes' filter shows you only the questions you've missed across all your practice sessions. It updates automatically as you re-attempt and get them right.

Is there a study guide for the CSLB Law & Business?+

Yes. PrepPass sells CSLB Law & Business — Complete Study Guide (2026), a PDF + EPUB download, $24.99 one-time; the practice on this page stays free without it. See the study guide →

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