Question 1

Does prevailing wage apply to my project?

Accepted Answer

If any public money is involved, assume yes until it's confirmed otherwise. In California, prevailing wage applies to public works over $1,000 paid for in whole or in part with public funds, which can include fee waivers, below-market land, and other subsidies on private projects. Federally funded or assisted construction over $2,000 falls under Davis-Bacon. Clean energy projects of 1 MW or more claiming the IRA bonus credit must pay Davis-Bacon rates to get it. A project can fall under more than one of these at once.

Question 2

What's the difference between California prevailing wage and Davis-Bacon?

Accepted Answer

They're separate laws with separate rates, forms, and enforcers. California rates come from DIR determinations and certified payroll goes to the Labor Commissioner through eCPR. Davis-Bacon rates come from SAM.gov and certified payroll (usually the WH-347) goes to the funding or contracting agency every week. California also requires daily overtime after 8 hours and its own apprenticeship process (DAS-140, DAS-142, 1:5 ratio). When both apply, workers are owed the higher rate for their classification.

Question 3

How often is certified payroll due?

Accepted Answer

On Davis-Bacon projects, weekly, for every week contract work is performed. On California public works, payroll is uploaded to DIR eCPR at least monthly, or more often if the contract requires it, and many awarding bodies ask for weekly. In every case, records must be produced within 10 days when the Labor Commissioner or awarding body requests them. IRA projects don't submit payroll to an agency, but the taxpayer must keep the records for an IRS review.

Question 4

What are the apprenticeship requirements?

Accepted Answer

In California, contractors on public works over $30,000 send a DAS-140 to the apprenticeship committees within 10 days of the contract and before work starts, request apprentices with a DAS-142 at least 72 hours (business days) ahead, keep one apprentice hour for every five journeyman hours, and pay training fund contributions. On IRA projects, registered apprentices must work 15% of total labor hours (for construction starting in 2024 or later), each program's daily ratio must be met, and any contractor with four or more workers must employ at least one apprentice.

Question 5

Is the prime contractor responsible for a subcontractor's violations?

Accepted Answer

Yes. In California the prime is jointly liable for a sub's unpaid wages and penalties and is expected to monitor its subs. On federal jobs, the agency can withhold the prime's payments to cover a sub's back wages, and under DOL's 2023 rule it can withhold from other federal contracts too. That's why every tier's payroll should be reviewed, not just the prime's.

Question 6

We received a notice from the DIR, DOL, or awarding body. What now?

Accepted Answer

Note the deadline first. A California Civil Wage and Penalty Assessment must be appealed within 60 days, and back wages not paid within 60 days can double through liquidated damages. Then gather the payrolls, timecards, fringe documentation, and apprenticeship records for the period in question. We help organize the records, calculate what's actually owed, and handle the response, working alongside your attorney when needed.

Question 7

How do IRA prevailing wage and apprenticeship mistakes get fixed?

Accepted Answer

Underpaid workers must receive the difference plus interest, and the taxpayer pays the IRS a $5,000 penalty for each underpaid worker, with higher amounts for intentional disregard. The penalty can be avoided for errors corrected quickly. Apprenticeship shortfalls carry a $50 penalty per missing labor hour unless the good faith exception applies. Because the IRS reviews these records long after construction, keeping them complete during the job is what protects the credit.

Worker	Classification	M	T	W	Th	F	Hrs	Rate	Fringe
J. Ramirez	Laborer Gr. 11	8	8	8	8	8	40	38.50	24.10
D. Chen	Oper. Eng. Gr. 4	8	8	8	8	8	40	52.75	30.20
M. Ortiz	Carpenter Appr. P22	8	8	8	8	8	40	26.40	14.80
T. Brooks	Cement Mason	8	8	10	8	8	42	46.15	CR 22.953

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Prevailing wage questions, answered.