When calculating whether it has met the prevailing wage obligation, a contractor may generally credit:
Explanation
Labor Code §1773.1 lets the employer count payments to bona fide health and welfare, pension, vacation and holiday, apprenticeship and training, and similar plans toward the total prevailing wage obligation, so long as the worker still receives the full package of cash plus creditable benefits. Overhead is the contractor's own cost of doing business and buys the worker nothing. Meals and lodging are not on the §1773.1 list; travel and subsistence are separately owed under §1773.8. The last option states the opposite of the rule: benefits are creditable, which is exactly why §1773.1 exists.
Law Reference: Labor Code §1773.1(a); §1773.1(d)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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