A contractor employs workers on a qualifying public works project. Failure to pay the required prevailing wage can result in:
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; §1771This 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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