Under California law prevailing wage rates are set by statute for contractors and sub-contractors that perform work on state, municipal and local public works projects with a value of over $1,000.00. Under prevailing wage law, workers must be paid certain rates of pay for each type of work performed. Prevailing wage rates are meant to prevent contractors and sub-contractors from recruiting and paying low wage workers from other areas or countries to do the work at a lower rate since all contractors and sub-contractors would be bound to pay the same amount for the same work duties under the prevailing wage law.
Prevailing wage also provides workers with fringe benefits or payment for benefits such that employees are paid the same wage for the same category of work on public works projects.

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