Public WorksQuestion 1602 of 1632

When calculating whether it has met the prevailing wage obligation, a contractor may generally credit:

a.Employer payments for bona fide fringe benefit plans
b.Its own overhead, allocated to the workers on the job
c.The value of meals and lodging provided to the crew
d.Only cash wages, since benefits are not creditable

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)

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