Public WorksQuestion 124 of 690

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

a.A warning only
b.An automatic CSLB license revocation
c.No consequence if the worker agreed to the lower rate
d.Liability for back wages plus penalties assessed by the Labor Commissioner

Explanation

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.

Law Reference: Labor Code §1775

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