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🐻 California Prevailing Wage & DIR Compliance

California has the most comprehensive — and demanding — prevailing wage program in the country. If you work on public projects in California, compliance isn't optional, and the penalties for getting it wrong are severe.

Key Principle

California's system has teeth. Unlike some states where prevailing wage enforcement is minimal, California's Department of Industrial Relations (DIR) actively investigates, audits, and penalizes. The eCPR system gives them visibility into every payroll you submit. Treat California compliance as seriously as you treat your bonding relationship.

When California Prevailing Wage Applies​

The Threshold​

California prevailing wage applies to public works projects over $1,000 — one of the lowest thresholds in the country.

What Counts as "Public Works"?​

Project TypePrevailing Wage Required?
State-funded constructionYes
City/county constructionYes
School district constructionYes
Water district / utility projectsYes
Transit / transportation projectsYes
Publicly subsidized private projects (Labor Code §1720.2)Yes — if public subsidy is "significant"
Private projects on public landOften yes
Maintenance work on public facilitiesYes (if over $1,000; hauling over $1,000)
Emergency repairsExempt in some cases
Purely private workNo
The "De Facto Public Works" Trap

Some projects that appear private may trigger prevailing wage if they receive public subsidies, tax incentives, or public land use agreements. AB 2011 and SB 35 housing projects have their own prevailing wage requirements. Always verify the funding and land ownership before assuming prevailing wage doesn't apply.

DIR Registration (PWC Registration)​

Who Must Register?​

Every contractor and subcontractor working on California public works must register with DIR as a Public Works Contractor (PWC).

RequirementDetails
Registration typePWC (Public Works Contractor)
Cost$400/year (as of 2024)
RenewalAnnual — registration expires June 30 each year
Who registersEvery tier — prime, sub, sub-sub
When to registerBefore submitting a bid or being listed on a bid
Penalty for non-registrationContract is void; penalties up to $100/day

How to Register​

  1. Go to dir.ca.gov/Public-Works/Contractor-Registration.html
  2. Create an account (or log in)
  3. Enter company information, license number, workers' comp info
  4. Pay the $400 annual fee
  5. Keep registration current — it must be active throughout the project

SB 854 Requirements​

SB 854 (2014) added major registration and compliance requirements:

SB 854 RequirementDetails
PWC registrationRequired to bid or work on public projects
eCPR filingMust submit certified payroll electronically to DIR
ListingSubs must be registered at time they're listed in the prime's bid
No work without registrationUnregistered contractors must stop work
Awarding body reportingAgencies must report project awards to DIR

California Wage Determinations​

Where to Find Rates​

California prevailing wage rates are published by DIR's Office of Policy, Research and Legislation (OPRL):

  1. Go to dir.ca.gov/oprl/DPreWageDetermination.htm
  2. Select the determination type (General, Residential, etc.)
  3. Select the craft/classification
  4. Select the county (rates vary by county)
  5. Review the rate, effective date, and expiration date

Reading a California Determination​

A typical California rate entry:

ComponentAmount
Basic hourly rate$54.00
Health & Welfare$15.50
Pension$13.25
Vacation/Holiday$5.00
Training$0.85
Other$0.50
Total hourly rate$89.10

Key Differences from Federal Rates​

FeatureFederal (Davis-Bacon)California (DIR)
Rate sourceDOL via SAM.govDIR via dir.ca.gov
Lock-inRates locked at bid openingRates may expire during project — must pay updated rates
ExpirationNo expiration within contractRates expire on specific dates
UpdatesPeriodic surveysCan change semi-annually or annually
Overtime baseOT on basic rate onlyOT on basic rate + certain fringes
Dual coverageIf federal $ involved, both apply — pay the higher rateSame
Rate Expiration Is Critical

Unlike federal rates, California prevailing wage rates expire on a specific date. If the rate expires mid-project, you must start paying the new rate as of the expiration date. Set up rate expiration alerts — this is one of the most common California compliance violations.

Electronic Certified Payroll Reporting (eCPR)​

What Is eCPR?​

California requires all certified payroll reports to be submitted electronically through DIR's online system. Paper certified payroll is no longer sufficient for state compliance.

Filing Requirements​

RequirementDetails
Who filesEvery contractor and sub on the project
FrequencyFor each pay period
DeadlineWithin 30 days of the last day of the pay period
FormatXML upload or manual entry via DIR portal
ContentSame as WH-347 plus California-specific fields

eCPR Required Fields​

Each eCPR record must include:

FieldDetails
Project informationPWC number, project name, awarding body
Contractor informationLicense number, DIR registration number
Worker informationName, address, last 4 of SSN, classification
Hours by dayDaily hours breakdown for the work week
Pay ratesBasic rate, fringe rates, total rate
Gross wagesTotal compensation
DeductionsTaxes, union dues, garnishments
Net wagesTake-home pay
Fringe paymentsAmounts paid to each trust fund or as cash
Apprentice informationProgram, period, ratio

eCPR Filing Methods​

MethodBest For
DIR online portalSmall contractors with few workers
XML uploadLarger contractors with payroll software
Software integrationContractors using prevailing wage time tracking software
Automate eCPR

Manual eCPR entry is time-consuming and error-prone. If you do more than occasional public works, invest in software that generates eCPR-compliant XML files directly from your time tracking data. The time savings and error reduction pay for the software quickly.

California Apprenticeship Requirements​

Mandatory Apprentice Employment​

California requires contractors on public works to employ registered apprentices:

RequirementDetails
RatioMinimum 1 apprentice per 5 journeymen (1:5 ratio) in each craft
RegistrationApprentices must be enrolled in a California-approved apprenticeship program
RequestMust request apprentice dispatch from an approved program within 72 hours
ExemptionIf the approved program cannot fill the request, you're exempt from the ratio
ReportingDAS 140 (contract info) and DAS 142 (request for dispatch) forms required

DAS Forms​

FormPurposeWhen to File
DAS 140Notify the apprenticeship committee of the contract awardWithin 10 days of award
DAS 142Request dispatch of apprenticesAt least 72 hours before needed

Apprentice Prevailing Wage Rates​

Apprentices on California public works must be paid the apprentice prevailing wage rate for their period:

Apprentice PeriodTypical % of Journeyman Rate
1st period40–50%
2nd period50–55%
3rd period55–60%
4th period60–70%
5th period70–75%
6th period75–80%
7th period80–85%
8th period85–90%

Exact percentages vary by trade and program.

Apprentice Fringe Requirements​

Apprentices must receive:

  • Health & Welfare — Same rate as journeyman (in most crafts)
  • Pension — Same rate as journeyman (in most crafts)
  • Vacation — Varies by program
  • Training — Same rate as journeyman

California Overtime Rules​

California prevailing wage overtime rules are more complex than federal rules:

Daily Overtime​

HoursRate
First 8 hours/dayStraight time
Over 8 to 12 hours/day1.5× (overtime)
Over 12 hours/day2× (double time)
7th consecutive day, first 8 hours1.5×
7th consecutive day, over 8 hours2×

Saturday / Sunday / Holiday​

DayRate (Typical)
Saturday (first 8 hrs)1.5× (varies by determination)
Saturday (over 8 hrs)2×
Sunday2×
Holidays2×

What Gets the Overtime Premium?​

In California, overtime on prevailing wage is generally calculated on the base hourly rate — but check the specific wage determination, as some include certain fringe components in the overtime calculation.

Double Coverage

On projects with both federal (Davis-Bacon) and California prevailing wage coverage, you must pay the higher rate for each classification. This typically means California rates (which are usually higher) plus the stricter of the two sets of rules.

Penalties for Violations​

California prevailing wage penalties are among the harshest in the country:

ViolationPenalty
Paying below prevailing wageBack pay + penalty of $200/day per worker
Not filing eCPR$100/day per worker
Late eCPR filing$100/day per worker
Falsifying certified payrollCriminal penalties + debarment
Using unregistered subsPenalty + contract may be void
Not employing apprenticesCivil penalty + back pay at journeyman rate
Repeat violationsDebarment from public works for up to 3 years
Willful violationsCriminal prosecution possible

Debarment​

Contractors found to have committed willful violations can be debarred from California public works for up to 3 years. Debarment means:

  • Cannot bid on public works projects
  • Cannot work as a subcontractor on public works
  • The debarment list is public (DIR publishes it online)
  • Debarment is sometimes based on violations by your subcontractors

Compliance Checklist​

Before the Project​

  • Verify DIR PWC registration is current (renew annually by June 30)
  • Obtain the correct wage determination for the project county and type
  • Note rate expiration dates and set alerts
  • File DAS 140 within 10 days of contract award
  • File DAS 142 to request apprentice dispatch (72 hours before needed)
  • Verify all subcontractors are DIR-registered
  • Set up eCPR filing (portal access or software)

During the Project​

  • Track daily hours by classification for each worker
  • Pay prevailing wage rates (verify against current determination)
  • File eCPR within 30 days of each pay period
  • Maintain apprentice-to-journeyman ratios
  • Monitor rate expirations and update rates when they change
  • Review subcontractor eCPR filings
  • Post the wage determination at the jobsite

After the Project​

  • Complete all final eCPR filings
  • Retain payroll records for minimum 3 years (recommended: 5+ years)
  • Retain eCPR confirmation receipts
  • Respond promptly to any DIR audit or complaint investigations

Common California Compliance Mistakes​

MistakeHow to Avoid
Expired wage ratesSet calendar alerts for expiration dates; check rates monthly
Missing eCPR filingsFile immediately after each pay period — don't batch them
Unregistered subcontractorsVerify DIR registration before listing subs in your bid
No apprentice dispatch requestFile DAS 142 even if you don't think apprentices are available
Classification errorsUse daily time records that capture classification per task
Paying fringes as cash without tracking shortfallCalculate fringe credits accurately using actual benefit costs
Not posting wage determinationPost at a conspicuous location on the jobsite

California Compliance Hub​

General Resources​