Public WorksQuestion 491 of 1605
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:
a.Ignore the fringe portion because cash payment of the base rate is enough
b.Wait until the project ends and pay the fringe amounts in a lump sum
c.Report the worker as exempt from prevailing wage
d.Pay the dollar value of the required fringe benefits directly to the worker as additional wages
Explanation
Under Labor Code §1773.1, the prevailing wage is the basic hourly rate plus employer payments for fringe benefits. If the employer makes no qualifying fringe-benefit contributions, the dollar value of those benefits must be paid to the worker as additional cash wages so the total package meets the determination.
Law Reference: Labor Code §1773.1Practice all 1605 questions free — no signup required.
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)