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HCM
PREVAILING WAGE

California prevailing wage law

Whether California requires prevailing wages on public construction, from what contract size, who sets the rates, and what contractors file. Each fact links its official source and the date it was checked.

Facts from the official sources listed at the end of this page; the oldest was read from an archived copy dated September 21, 2026. For contractors and employers. General information, not legal advice: confirm the rules with the awarding body or the agency before you bid. Reviewed every year.

Prevailing wage in California at a glance

State prevailing wage law
In forceCal. Labor Code §§ 1720-1861
Contract threshold
Over $1,000Other amounts for some work
Certified payroll
At least monthly
Federal work
Davis-Bacon, over $2,000

California prevailing wage rules

The law
California requires prevailing wages on public works over $1,000 (Labor Code 1771).Source: California Labor Code section 1771 (opens in a new tab), checked October 6, 2026
Who it covers
Construction, alteration, demolition, installation or repair work done under contract and paid for in whole or in part out of public funds (Labor Code 1720), whoever the public owner is; not work done by a public agency's own forces (Labor Code 1771).Source: California Labor Code section 1720 (opens in a new tab), checked October 6, 2026
Threshold
Applies to public works over $1,000 (Labor Code 1771). An awarding body may choose not to require prevailing wages on projects of $25,000 or less (construction) or $15,000 or less (alteration, demolition, repair or maintenance) only if the Director of Industrial Relations has approved it to enforce a labor compliance program on every project it awards (Labor Code 1771.5).Source: California Labor Code section 1771.5 (opens in a new tab), checked October 6, 2026
Rates
Rate determinations (opens in a new tab)General prevailing wage determinations of the Director of Industrial Relations, which the awarding body must obtain (Labor Code 1773).Source: California DIR, Director's General Prevailing Wage Determinations (opens in a new tab), read from an archived copy dated October 3, 2026 (opens in a new tab)
Certified payroll
DIR Public Works Website Services (opens in a new tab)Each contractor and subcontractor furnishes its certified payroll records directly to the Labor Commissioner, electronically, at least monthly (at least once every 30 days while work is performed and within 30 days after the last day of work), or more often if the contract says so; a contractor not registered with DIR, working on a project too small to need registration (Labor Code 1725.5(f)), keeps the records for 3 years instead (Labor Code 1771.4).Filed with: Labor Commissioner (DIR), electronically.Source: California Labor Code section 1771.4 (opens in a new tab), checked October 6, 2026
Registration
DIR Public Works Website Services (opens in a new tab)Contractors and subcontractors must be registered with DIR to bid on, be listed in a bid for, or work on a public works contract (Labor Code 1725.5, 1771.1); DIR charges $400, $800 or $1,200 for one, two or three fiscal years. Not required on projects of $25,000 or less (construction, alteration, demolition, installation or repair) or $15,000 or less (maintenance) (Labor Code 1725.5(f)).Source: California Labor Code section 1725.5 (opens in a new tab), checked October 6, 2026
Apprentices
At least one hour of apprentice work for every five hours of journeyman work in each apprenticeable craft or trade, and no more than the ratio in the apprenticeship standards the contractor is bound by (Labor Code 1777.5(g)); the section does not apply to contracts under $30,000 (1777.5(o)).Source: California Labor Code section 1777.5 (opens in a new tab), checked October 6, 2026

Federally funded work in California

On a project whose federal funding carries Davis-Bacon, the federal rules apply whatever the state law says. Whether California's own law applies as well is in its coverage above: some state laws leave federally funded projects out.

Davis-Bacon
Federal Davis-Bacon labor standards apply to contracts over $2,000 for the construction, alteration or repair of public buildings or public works, or of work financed with federal funds under a law that requires Davis-Bacon, one of the Related Acts (29 CFR 5.5(a)).Source: 29 CFR 5.5, Contract provisions and related matters (opens in a new tab), checked October 6, 2026
Certified payroll
On Davis-Bacon work, each contractor and subcontractor submits certified payrolls weekly, for each week of covered work; the prime contractor is responsible for its subcontractors' payrolls (29 CFR 5.5(a)(3)(ii)(A)).Source: 29 CFR 5.5, Contract provisions and related matters (opens in a new tab), checked October 6, 2026

WORKLIO HCM

Prevailing wage and certified payroll in Worklio HCM

Set up prevailing wage rates by project, location and classification: your team assigns each worker's classification and apprentice step, and payroll applies the rates. Fringe benefits are calculated as cash or plan contributions, union dues and benefit packages are deducted with remittance reports by local, apprentices are paid at progressive rates by level, and WH-347 certified payroll reports carry job costing segments. Workers' comp class codes are set per job and employee. Union, prevailing wage, and certified payroll is available as an add-on to any plan.

See the union, prevailing wage, and certified payroll add-on

Prevailing wage in other states

Sources

The statute, agency page or federal rule behind each fact, as checked.

General information, not legal or tax advice. Rules change; confirm current requirements with the relevant agency or your advisor. You remain responsible for paying the required rates and filing on time.

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