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California Contractors Penalized $1.1M for Wage Underpayments

Updated: May 26

California Contractors Penalized for Prevailing Wage Underpayments $1.1 Million

Industry News: California Contractors Penalized for Prevailing Wage Underpayments $1.1 Million

Paying your employees correctly isn’t just a legal obligation; it’s a commitment to fairness. California Labor Code 1774 safeguards workers being paid fair compensation on prevailing wage required projects. Did you know prevailing wage rates are posted publicly online and should be accessible on the public works jobsite for employees to review when needed? When employees file a compliant due to underpayment, you open yourself up to state investigations, payment of restitution, and penalties assessed 🛠️💸

CA state prevailing wages can be tricky. There are two determinations issued each year, and the determining factor as to which to select for your project comes down to the first bid advertised date which can be found on the project’s DIR page. From there, select the location of your project, find your classification and review all information provided to ensure you are not misclassifying your employees. Also, be sure to keep an eye out for predetermined rate increases. Missing an increase date will result in underpayments.

Our team of experienced professionals are here to help make this process as simple as possible. Provide us with your project details so that we can pull the applicable determination, review your scope of work, pull the covered classifications, calculate the prevailing wage rates, and remind you when an increase is coming up without skipping a beat!

Contact us today to learn more about our services and how we can help your company with your prevailing wage labor compliance needs!

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