Public WorksQuestion 690 of 1632

A Project Labor Agreement (PLA) on a California public works project is generally:

a.Permitted where the PLA meets PCC §2500's criteria
b.Required on every state-funded project over $1 million
c.Prohibited as discriminatory against non-union firms
d.Permitted only on federally funded public jobs

Explanation

Public Contract Code §2500 lets an awarding body use a project labor agreement so long as the agreement takes bids from union and non-union contractors alike, recognises the workers' right to choose representation, bars strikes and lockouts, sets a dispute procedure, and binds every contractor and subcontractor on the project. A PLA is therefore neither prohibited nor limited to federal work. Nor is it compulsory at any dollar figure: the choice belongs to the awarding body. Section 2503 goes the other way, conditioning state construction funding for charter cities that forbid project labor agreements.

Law Reference: Public Contract Code §2500; §2503

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 →

Practice all 1632 questions free — no signup required.

Own the complete CSLB Law & Business guide — PDF + EPUB, $24.99 →

Related questions on this topic

Last reviewed: · editorial process

PrepPass team · Verified against California CSLB Contractor License Law & Business Exam · How we review
Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)
Report