California has one of the most comprehensive prevailing wage laws in the nation. It applies to all public works projects exceeding $1,000, including construction, alteration, demolition, installation, or repair work done under contract and paid for with public funds. Contractors must register with DIR and submit certified payroll records electronically.
California has an active prevailing wage law (California Prevailing Wage Law (Labor Code Sections 1720-1861)). Administered by California Department of Industrial Relations (DIR). Certified payroll is required. Federal Davis-Bacon applies to all federal projects.
The federal Davis-Bacon Act applies to all federally funded or federally assisted construction contracts over $2,000 in California. This includes projects funded by federal agencies, FHWA highway projects, HUD housing, and projects receiving federal grants.
Penalties of up to $200 per worker per day for underpayment. Penalty increases to $300/day for willful violations. Contractors may be debarred from public works for up to 3 years. Workers can recover back wages plus interest.
As of 2025, expanded coverage for certain private projects receiving public funds and updated electronic reporting requirements.