The Public Works section: prevailing wage in one hour
Only 5% of the Law and Business exam — the smallest section. Worth an hour of focused work, not a weekend. Here is the hour.
If you never bid public jobs, this section is all new, and that is fine: it is small and the rules are mechanical. The point is to collect the handful of sure points, not to become a prevailing wage expert. An hour on Contracts is worth about four here, so keep it in proportion.
What CSLB says it covers
The official study guide lists three topics under Public Works (5%):
- Prevailing wage requirements — what public works is, who sets the rates, payroll records, apprentices, penalties.
- Bonding requirements.
- Insurance requirements — including the workers' compensation certification.
The numbers that get asked
| Rule | Number |
|---|---|
| Prevailing wage applies to public works projects over Labor Code §1771 | $1,000 |
| Certified payroll records filed electronically with the Labor Commissioner DIR FAQ; §1771.4 | at least monthly |
| Produce payroll records after a written request Labor Code §1776 | 10 days |
| Penalty for not producing them in time Labor Code §1776 | $100 per day per worker |
| Apprentices required on contracts of Labor Code §1777.5 | $30,000 or more |
| Apprentice ratio (straight-time hours, per craft) Labor Code §1777.5; DAS | 1 hour per 5 journeyman hours |
| DAS 140 contract award notice to apprenticeship committees DAS FAQ | within 10 days of the contract |
| DAS 142 request for apprentices DIR apprenticeship page | 3 business days ahead |
| Penalty for paying less than prevailing wage Labor Code §1775 | up to $200 per day per worker |
| Penalty for an overtime violation on public works Labor Code §1813 | $25 per worker per day |
California Prevailing Wage Laws (DIR compilation of the Labor Code); DIR public works FAQ and Public Works Manual; DIR and DAS apprenticeship pages. Checked 28 September 2026.
Where people lose points
- “In whole or in part.” Work is public works when it is done under contract and paid for in whole or in part out of public funds. A little public money is enough. Work a public agency does with its own employees is not covered.
- Who sets the rate. The Director of the Department of Industrial Relations determines prevailing wage rates. Not the awarding body, not the union, not you. The awarding body gets the rates from DIR and must post them at each job site.
- Register before you bid. Contractors and subcontractors must be registered with DIR before they bid on, are listed in a bid for, or work on a public works project.
- Apprentices are counted in straight-time hours. One apprentice hour for every five journeyman hours, per craft, and overtime hours do not count toward the ratio. On a job with 100 journeyman hours in a craft, that is 20 apprentice hours.
- Two penalties, two logics. Underpaying prevailing wage: up to $200 per worker per day, set by the Labor Commissioner, on top of the back wages. Overtime violations: a flat $25 per worker per day that the Labor Commissioner cannot reduce.
- No mechanics lien on public works. You cannot lien public property; the remedy for unpaid subs and suppliers is a stop payment notice on the funds. This one is shared with the Insurance and Liens section.
- Workers' comp, in writing, before work starts. A public works contractor must sign and file with the awarding body a certification that it carries workers' compensation insurance or is self-insured, before performing the work.
How the questions tend to read
Short and factual: who, how much, how often. A few ratio calculations. An example of our own, written the same way (not an actual exam question):
On a $400,000 school project your carpenters work 240 straight-time journeyman hours and 30 overtime hours. How many apprentice hours does the minimum ratio require for carpentry?
48. 240 ÷ 5 = 48. Overtime hours are not counted toward the ratio.
How to study it
- Read DIR's public works FAQ once. It is plain language and covers most of this page.
- Learn the table above and stop there. One hour in a four-week plan, maybe a second for review. Our study plan gives it 1 hour in two weeks and 1½ in four.
Left out on purpose. Bond percentages and retention limits on public contracts come from the Civil Code and Public Contract Code, which we have not verified against the statute text, so we do not quote them. The DIR registration fee and the small-project exemption from registration sit in a Labor Code section marked operative only until 1 July 2026; check DIR for the current rules before relying on any figure.
Common questions
I will never do public work. Can I skip this section?
You can budget it lightly, but do not skip it. At 5% it is still several questions, and they are some of the easiest points on the exam.
Does prevailing wage apply to private jobs?
Not as a rule. It applies to public works as defined in the Labor Code: work under contract paid in whole or in part from public funds.
How often is certified payroll due?
At least monthly, filed electronically with the Labor Commissioner through DIR's system, or more often if the contract requires it.
Last reviewed 28 September 2026 against Labor Code §§1720, 1770, 1771, 1771.1, 1771.4, 1773.2, 1775, 1776, 1777.5, 1813 and 1861 (DIR compilation, revised February 2025), the DIR public works FAQ and Public Works Manual, and the DIR and DAS apprenticeship pages. Laws change; confirm at dir.ca.gov. Study guidance, not legal advice. We are not affiliated with CSLB, DIR or PSI.