Public WorksQuestion 1602 of 1605

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

a.Employer payments for bona fide fringe benefits (health, pension, vacation, training) toward the total prevailing wage obligation
b.The contractor's overhead
c.Meals provided to workers
d.Only cash paid, never benefits

Explanation

Labor Code §1773.1 lets employers count qualifying fringe benefit contributions (health/welfare, pension, vacation/holiday, apprenticeship training) toward the total prevailing wage obligation. The worker must still receive at least the required total of cash wage plus creditable benefits.

Law Reference: Labor Code §1773.1

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Reviewed by Abraham Chen Licensed California General Contractor (CSLB License #1101856 verify)
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