EstatePass
CaliforniaBusinesseasy20% of exam part

Under California prevailing wage law, which type of project is subject to prevailing wage requirements?

Correct Answer

B) Public works projects over $1,000

California prevailing wage law applies to public works projects over $1,000. The threshold is very low to ensure most public projects are covered.

Answer Options
A
Private residential projects over $1 million
B
Public works projects over $1,000
C
All projects in incorporated cities
D
Commercial projects with public funding

Why This Is the Correct Answer

California Labor Code Section 1720 et seq. requires prevailing wages to be paid on public works projects. The monetary threshold is very low — currently $1,000 — to ensure that nearly all public projects are covered. This applies to contracts awarded by state, county, city, or any public agency.

Why the Other Options Are Wrong

Option A: Private residential projects over $1 million

Private residential projects are not subject to California prevailing wage law regardless of their value. Prevailing wage requirements are tied to public funding or public agency contracts, not to the size of a private construction project.

Option C: All projects in incorporated cities

Location in an incorporated city does not trigger prevailing wage requirements. The determining factor is whether the project is a public works contract funded or directed by a public agency, not the geographical jurisdiction.

Option D: Commercial projects with public funding

Commercial projects with some public funding may be subject to prevailing wage if the public agency is the awarding body, but the answer as stated is incomplete and too narrow. The accurate trigger is 'public works project over $1,000' — a broader category than just commercially-framed projects with partial public funding.

Memory Technique

Remember: 'Public works = prevailing wage, even for $1,000.' The $1,000 floor is so low it's almost symbolic — California wanted virtually every public works dollar to carry prevailing wage protection. Think: 'If the public is paying, prevailing wage is playing — even for $1,000.'

Was this explanation helpful?

More California Questions

A contractor is bidding on a public works project in Los Angeles County with a contract value of $2,000,000. The prevailing wage determination shows carpenter wages at $45.50 per hour. What additional amount must be paid for health and welfare benefits?

A construction company has 15 employees working on a project. One employee suffers a work-related injury. Under California law, what is the primary difference between Cal/OSHA and federal OSHA jurisdiction?

A contractor employs 8 workers and pays total wages of $480,000 annually. If the Unemployment Insurance (UI) tax rate is 3.4% on the first $7,000 of each employee's wages, what is the total annual UI tax owed?

Under Cal/OSHA regulations, what is required when a construction site has a trench excavation deeper than 5 feet?

A public works project requires certified payroll records. The prevailing wage for an electrician is $52.75 per hour with $18.50 in fringe benefits. If an electrician works 8 hours, what is the total prevailing wage obligation?

On a prevailing wage project, a carpenter's regular rate is $28/hour, but the prevailing wage is $35/hour with $8/hour in benefits. What must the contractor pay if the carpenter already receives $6/hour in benefits?

A California contractor has quarterly payroll of $85,000. What is the State Disability Insurance (SDI) withholding amount if the current SDI rate is 0.9% and the wage base limit is $153,164 annually?

Under California law, which statement about business entity liability is CORRECT?

XYZ Contracting LLC has 8 employees in California. An employee is injured on the job and requires medical treatment costing $15,000. The company has no workers' compensation insurance. What is XYZ's potential liability?

A general contractor subcontracts electrical work to an LLC. The electrician works exclusively for this contractor, uses the contractor's materials, and follows the contractor's daily schedule. Under AB5, this relationship is likely:

People Also Study

Related Study Resources

Practice More Contractor Exam Questions

Access all practice questions with progress tracking and adaptive difficulty to pass your contractor license exam.

Start Practicing

Disclaimer: EstatePass is an independent exam preparation platform and is not affiliated with, endorsed by, or connected to any state contractor licensing board, the Construction Industry Licensing Board (CILB), the Department of Business and Professional Regulation (DBPR), NASCLA, Pearson VUE, PSI, or any government agency. Exam requirements, fees, and regulations change frequently. Always verify current requirements with your state's licensing board before making decisions. Information shown was last verified on the dates indicated and may not reflect the most recent changes.