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California prevailing wage law applies to public works contracts of $1,000 or more. There is no exemption for small public works projects.

The Director of the Department of Industrial Relations (DIR) determines prevailing wage rates by craft, classification, and locality. Contractors must pay the rate in effect when the work is performed.

In addition to holding a CSLB license, a contractor must register annually with the DIR before bidding on or being awarded a public works contract.

Contractors on public works must keep accurate certified payroll records and furnish them to the Labor Commissioner, generally through the DIR's online electronic system.

The prevailing wage is made up of a basic hourly rate plus employer payments for fringe benefits such as health care, pension, and training. The total package must meet the DIR determination.

Because subcontractors and suppliers cannot place a lien on public property, the prime contractor on a public works contract over $25,000 must provide a payment bond guaranteeing they are paid.

Since public property cannot be liened, an unpaid claimant on a public works project serves a stop payment notice on the public agency, which must then withhold enough project funds to cover the claim.

Public works contractors must request apprentices from a state-approved apprenticeship program and employ them on the project, supporting the training of the next generation of skilled workers.

A contractor who underpays prevailing wage is liable for the wage shortfall plus penalties assessed by the Labor Commissioner, and may be barred (debarred) from bidding on future public works.

The contractor must post the prevailing wage determination at a conspicuous place at the job site so workers can see the rates that apply to their craft.

A public works project is construction, alteration, demolition, or repair work paid for in whole or in part out of public funds. Prevailing wage and related rules attach because public money is involved.

A performance bond guarantees the project will be finished according to the contract. It is separate from the payment bond, which guarantees that workers and suppliers are paid.

DIR public works registration is an annual registration with an annual fee. A contractor must keep it current to remain eligible to bid on and perform public works.

Prevailing wage must be paid to all workers employed on the public works project — by the prime contractor and by every subcontractor — regardless of union membership.

Public works contractors must employ apprentices at a ratio of not less than one hour of apprentice work for every five hours of journeyman work, using apprentices from a state-approved program.

Labor Code §1815 requires that work performed on public works in excess of 8 hours per day be compensated at not less than 1.5 times the basic hourly prevailing rate. Daily overtime applies even if the weekly total is under 40 hours.

Labor Code §1813 sets a forfeiture of $25 for each worker for each calendar day during which that worker is required or permitted to work more than the legal maximum hours without the required overtime pay. This penalty is in addition to paying the overtime owed.

A mechanics' lien works by allowing a forced sale of the property to satisfy the debt. Because public property is held for public use and cannot be sold off to pay a private claim, liens cannot attach to it — which is why the law instead provides payment bonds and stop payment notices on public works.

A bid bond protects the public agency by guaranteeing that, if the contractor is the successful low bidder, it will sign the contract and furnish the required performance and payment bonds. If the bidder backs out, the bond covers the extra cost of awarding to the next bidder.

Debarment is a period — typically up to three years — during which a contractor (and its responsible officers) is prohibited from bidding on or being awarded any public works contract. It is a separate consequence from monetary penalties and back-wage liability.

Labor Code §1776 requires certified payroll to be available for inspection, but copies provided to the public must have personal identifying information — such as each worker's name, address, and social security number — redacted to protect worker privacy.

Under Labor Code §1773.1, the prevailing wage is the basic hourly rate plus employer payments for fringe benefits. If the employer makes no qualifying fringe-benefit contributions, the dollar value of those benefits must be paid to the worker as additional cash wages so the total package meets the determination.

Any contractor with employees in California must carry workers' compensation insurance, and this requirement applies fully to public works. A public agency cannot award the contract to a contractor that lacks valid workers' compensation coverage.

Violating the apprenticeship requirements of Labor Code §1777.5 exposes the contractor to civil penalties under §1777.7, and a knowing violation can also make the contractor ineligible to bid on or be awarded public works contracts for a period of time.

Stop payment notices on public works are time-limited. A claimant must serve the notice within the statutory window tied to completion or cessation of the work (a notice of completion or acceptance triggers a shorter deadline); serving late means the public entity is not obligated to withhold funds.

The payment bond on public works must be furnished by an admitted surety insurer — a surety company licensed and authorized to transact surety business in California. This ensures the bond is backed by a financially responsible, regulated guarantor.

Under Labor Code §1773 and the DIR's determinations, workers must be paid the prevailing wage rate in effect for their craft and locality at the time the work is performed. Determinations are issued by craft and geographic area and can change over the life of a project.

Labor Code §1773.3 requires the awarding body to file a separate notice (commonly the PWC-100) with the DIR within 5 days of awarding any public works contract, providing the project identification number used for certified payroll reporting.

Labor Code §1813 imposes a $25 penalty per worker for each calendar day during which the worker was required or permitted to work more than the legal hours without paying the required overtime rate on public works.

Labor Code §1777.7 authorizes debarment from bidding on or being awarded public works contracts for up to 3 years for a knowing second violation of apprenticeship standards within a 3-year period, in addition to civil penalties.

Under Civil Code §9356 and §9558, a claimant other than the direct contractor must serve a stop payment notice within 30 days after recording of a notice of completion, acceptance, or cessation on a public work; if no such notice is recorded, the deadline extends to 90 days after actual completion or cessation.

Labor Code §1720 defines public works as construction paid for in whole or in part out of public funds. A privately owned, privately funded project is not a public work and §1771's prevailing wage requirement does not apply.

Under Labor Code §1773, the Director of Industrial Relations determines per-craft, per-county prevailing wage rates and publishes general determinations on a semi-annual schedule (typically February 22 and August 22 each year), with special determinations as needed.

Labor Code §1776 and DIR regulations require contractors on public works projects monitored by the DIR to submit certified payroll records electronically through the DIR's eCPR system, generally at least monthly while work is being performed.

Labor Code §1726 directs the awarding body, upon notification of an underpayment, to withhold from progress or final payments the amounts assessed by the Labor Commissioner for unpaid prevailing wages, statutory penalties, and forfeitures until the matter is resolved.

Labor Code §1735 prohibits discrimination on public works on the basis of race, religious creed, color, national origin, ancestry, physical disability, medical condition, marital status, sex, age, or sexual orientation, and imposes a forfeiture for each offense in addition to other remedies.

Labor Code §1771.4 requires contractors on DIR-monitored public works to post job-site notices about prevailing wage rates and workers' rights as specified by the DIR, in addition to the certified payroll and registration requirements.

Mechanics' liens cannot attach to public property. Civil Code §9550 requires the prime contractor on public works over $25,000 to furnish a payment bond protecting laborers and material suppliers, who recover unpaid sums by making a timely written claim on that bond.

The §1777.5 ratio requires at least 1 hour of apprentice work for every 5 hours of journeyman work. With 200 journeyman hours, the contractor must employ apprentices for at least 200 ÷ 5 = 40 hours, drawing from a state-approved apprenticeship program.

Under Labor Code §1771.4, public works projects monitored by DIR require contractors to submit certified payroll records (CPRs) electronically to the Labor Commissioner through DIR's online eCPR (electronic Certified Payroll Reporting) system. Submission directly to the awarding body alone is insufficient because §1771.4 specifically channels enforcement through DIR. The county recorder handles liens and notices, not payroll, and local building officials oversee code compliance, not wage compliance. Failure to upload CPRs to DIR can trigger penalties under Labor Code §1776(g).