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ARTICLE · 18 FEBRUARY 2014

Changes To California Prevailing Wage Law: Implications For Solar Projects

Foley & Lardner LLP
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Recent changes to California’s prevailing wage laws highlight the importance of complying with them. Prevailing wage laws are aimed at ensuring that a contractor’s ability to win a public works contract is not based on paying lower wages than a competitor pays.

United StatesEnergy and Natural Resources
Foley & Lardner
Foley & Lardner
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Recent changes to California's prevailing wage laws highlight the importance of complying with them. Prevailing wage laws are aimed at ensuring that a contractor's ability to win a public works contract is not based on paying lower wages than a competitor pays. Contractors are required to set the same wage rates when bidding on a public works project, comply with daily and weekly overtime pay requirements, and maintain accurate payroll records. Prevailing wages vary by trade craft and location, and a matrix of the State's prevailing wages can be found at the Department of Industrial Relations website.

A contractor or subcontractor that fails to comply with prevailing wage requirements risks facing a potentially costly action for unpaid wages, penalties, liquidated damages and fees/costs. The State Legislature recently increased the risk of exposure for prevailing wage violations by (1) extending the period of time (from 180 days to 18 months) during which state

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