A general contractor on a public works job pays a laborer the basic hourly rate in cash but provides NO health, pension, or training contributions. To comply with the prevailing wage determination, the contractor must:
Explanation
Under Labor Code §1773.1 the prevailing wage is one package: the basic hourly rate plus employer payments for benefits. An employer that makes no qualifying contributions must pay the dollar value of those benefits to the worker as additional cash wages, so the total meets the determination. Ignoring the fringe portion underpays every hour and is a §1775 violation. Deferring it to the end of the job fails because the obligation attaches to each pay period, not to project closeout. And there is no exemption to report: coverage follows the classification and the work performed.
Law Reference: Labor Code §1773.1(d); §1773.1(a)This 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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