Public Works Prevailing Wage Compliance: Complete California Guide 2025
Master prevailing wage compliance for California public works projects. Learn requirements, certified payroll, penalties, DIR registration, and best practices for contractors.
Prevailing Wage Overview
California Prevailing Wage Facts
Threshold:
$1,000
For public works
Penalty Range:
$50-200/day
Per violation
Debarment:
3 Years
For violations
California's prevailing wage law requires payment of locally prevailing wages on public works projects over $1,000. This includes construction, alteration, demolition, installation, repair, or maintenance work done under contract and paid for with public funds.
Public Works Include:
- • State and local government projects
- • School districts and universities
- • Public utilities and transit
- • Subsidized housing projects
- • Charter city projects
Work Types Covered:
- • New construction
- • Alterations and renovations
- • Demolition work
- • Maintenance (over $15,000 or 20%)
- • Installation and repair
Key Requirements
DIR Registration
- • All contractors and subcontractors must register
- • Annual renewal required ($400 fee)
- • Must be registered before bidding
- • PWC-100 form submission
Electronic Certified Payroll
- • Submit through eCPR system
- • Weekly submission required
- • All contractors and subs must comply
- • Statement of compliance required
Labor Compliance Program
- • Awarding body must have LCP
- • Third-party LCP or DIR coverage
- • Monitor and enforce compliance
- • Withholding for non-compliance
- Post prevailing wage rates at job site
- Pay correct prevailing wage rates
- Submit certified payroll weekly
- Maintain accurate records (3 years)
- Train employees on proper classification
- Respond to requests for records
Wage Determinations
Step 1: Identify Classification
Determine the craft and classification for each worker based on work performed
Step 2: Find Geographic Area
Rates vary by county - use project location, not company location
Step 3: Check Effective Date
Use rates in effect at bid advertisement (not award or start)
Step 4: Calculate Total Rate
Basic hourly rate + fringe benefits + training fund contributions
Resource: DIR website (dir.ca.gov/OPRL/pwd) for current rates
| Trade | Classification | Typical Work |
|---|---|---|
| Carpenter | Multiple groups | Framing, formwork, drywall |
| Laborer | Group 1-3 | General labor, cleanup |
| Operating Engineer | Group 1-8 | Equipment operation |
| Electrician | Inside Wireman | Electrical installation |
Certified Payroll Requirements
- Register for eCPR account at dir.ca.gov
- Add project using PWC project number
- Enter worker information and hours
- Calculate wages and fringes
- Submit Statement of Compliance
- Submit weekly (within 10 days)
- Maintain confirmation receipts
Warning: False certified payroll is a felony punishable by fine and/or imprisonment
Worker Details
- • Full name and address
- • Social Security (last 4 digits)
- • Classification(s) worked
- • Apprentice registration number
Payment Information
- • Hours worked each day
- • Hourly rate paid
- • Gross amount earned
- • Deductions and net pay
- • Fringe benefit payments
Penalties & Enforcement
Wage Violations
- • $50/day per worker (first violation)
- • $100/day per worker (willful violation)
- • $200/day per worker (3rd violation in 3 years)
- • Plus unpaid wages and interest
Apprentice Violations
- • $100-300/day for ratio violations
- • Additional penalties for unregistered programs
Record Keeping
- • $100/day for failure to maintain records
- • $100/day for failure to provide records
- • Ineligible for public works (up to 3 years)
- • Listed on DIR debarment list
- • Cannot bid as prime or sub
- • Applies to responsible officers
- • May affect bonding and insurance
Best Practices
- Implement robust tracking systems
- Train field supervisors on classifications
- Conduct internal audits regularly
- Use certified payroll software
- Document scope of work changes
- Maintain detailed daily reports
- Misclassifying workers
- Using wrong geographic rates
- Late certified payroll submission
- Incomplete fringe reporting
- Ignoring apprentice ratios
- Poor subcontractor oversight
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