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); §1726This topic, taught in full in the CSLB Law & Business guide. CSLB Law & Business — Complete Study Guide (2026) — PDF + EPUB, $24.99 · 14-day refund →
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Related questions on this topic
- On a public works contract that exceeds $25,000, the prime contractor must furnish:
- An unpaid subcontractor on a public works project can compel the public agency to withhold project funds by serving:
- On most public works projects, contractors are required to:
- A contractor on a public works project must post the applicable prevailing wage determination:
- Which project is generally considered 'public works' subject to prevailing wage?
- On a public works project, the bond that guarantees the project will be completed according to the contract is the:
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PrepPass team · Verified against California CSLB Contractor License Law & Business Exam · How we review
Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)