Public WorksQuestion 615 of 690

Under Labor Code §1771.5, a public agency may exempt a public works project from prevailing wage requirements only if the project does not exceed:

a.$1,000 for any public work
b.$25,000 for construction and $15,000 for alteration, demolition, repair, or maintenance, AND the agency has adopted a labor compliance program
c.$50,000 for any project funded by local revenue
d.$100,000 for projects awarded to small businesses

Explanation

Labor Code §1771.5 allows an awarding body to exempt projects from prevailing wage only if it has adopted a DIR-approved labor compliance program AND the project is $25,000 or less for new construction, or $15,000 or less for alteration, demolition, repair, or maintenance. The $1,000 figure is the general threshold under §1771 above which prevailing wages always apply (with no agency exemption available). The $50,000 and $100,000 options are fabricated thresholds that do not exist in the statute, and small-business status does not waive prevailing wage.

Law Reference: Labor Code §1771.5

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