Public WorksQuestion 124 of 1632

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

Explanation

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.

Law Reference: Labor Code §1775(a); §1726

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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)
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