Handyman Insurance, Follow the Safe Harbor Provisions of CA Labor Code Section 1775.
Although a general contractor can still be found liable for a prevailing wage violation, general contractors will not be separately liable for penalty assessments if it acts in accordance with the following:
1) The subcontract includes a copy of the provisions of Labor Code sections 1775, 1771, 1776, 1777.5, 1813, and 1815.
2) The general contractor closely oversees payment of the specified prevailing rate of per diem wages by the subcontractor to its employees, by monitoring of the subcontractors actual payroll records.
3) Upon becoming aware of any violation, the general contractor should immediately take corrective action to comply with the specific prevailing wage at issue, including retaining from the subcontractor the appropriate amount due for underpaid workers performing work on the project.
4) Prior to releasing final payment or retention to the subcontractor , the general contractor must secure an affidavit signed under penalty of perjury from the subcontractor stating that the subcontractor has paid the specified general prevailing rate of per diem wages to its employees on the project and any amounts due for overtime pursuant to Labor Code Section 1813.