EmploymentQuestion 277 of 1605
A contractor employs workers on a qualifying public works project. Failure to pay the required prevailing wage can result in:
a.No consequences if the workers agreed to less
b.A reduction in the project's scope only
c.An automatic upgrade of the contractor's license class
d.Liability for wage shortfalls plus statutory penalties and possible debarment from public works
Explanation
On public works subject to prevailing wage, paying less than the required rate exposes the contractor to back-wage liability, statutory penalties assessed by the Labor Commissioner, and potential debarment from bidding on public works.
Law Reference: Labor Code §1720 / §1771Practice all 1605 questions free — no signup required.
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)