EmploymentQuestion 277 of 1632

A contractor employs workers on a qualifying public works project. Failure to pay the required prevailing wage can result in:

a.Back wages only, with no penalty where the error was honest
b.A penalty capped at $40 for each worker on the project
c.Debarment alone, with no liability for the wage shortfall
d.Back wages, up to $200 a day per worker, and debarment

Explanation

Labor Code §1775(a) makes the contractor pay each worker the difference between the prevailing rate and what was actually paid, and forfeit a penalty the Labor Commissioner sets at up to $200 for each calendar day, or portion of a day, for each underpaid worker; §1777.1 adds debarment from public works for one to three years. A good-faith mistake can reduce the penalty to $40 a day, but it does not erase it. The $40 figure is a daily floor per worker, not a total cap. And debarment supplements the wage liability rather than replacing it.

Law Reference: Labor Code §1775(a); §1777.1; §1771

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