California law provides special wage and hour requirements for labor performed on public works projects. "Public Works" includes any construction, alteration, demolition, or repair work performed under contract and paid for, in whole or in part, out of public funds, except for certain work done directly by a public entity. Among these requirements is the obligation to pay no less than the prevailing rate of per diem wages to all employees on the public works job. Employers subject to state contracts as result of a business-relationship with the state government should carefully review the obligations engendered by such a relationship.
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