California DIR Registration & Prevailing Wage: Essential Compliance for Public Works

Public Works Compliance: The Basics

If you want to perform construction, alteration, demolition, or repair work funded by public money in California, you must comply with strict labor laws. The Department of Industrial Relations (DIR) oversees this compliance. Failure to adhere to these rules will result in your bid being rejected or your contract being terminated.

1. DIR Registration

Under SB 854, every contractor and subcontractor listed on a public works bid must hold an active DIR registration.

• Cost: $400 per fiscal year (July 1 to June 30). Multi-year options are available.
• Requirement: You cannot even submit a proposal without an active DIR registration number.

2. Prevailing Wage Thresholds

Prevailing wage is the legally mandated hourly rate (including fringe benefits) for specific crafts in each county.

• The $1,000 Rule: Any public works project exceeding $1,000 requires all workers to be paid the prevailing wage.
• Certified Payroll: You must prove compliance by submitting electronic certified payroll records (eCPR) directly to the DIR.

3. Apprenticeship Obligations

For public works contracts valued at $30,000 or more, you are legally required to employ apprentices.

• DAS 140 Form: Must be submitted to apprenticeship committees within 10 days of the contract award.
• DAS 142 Form: Use this to request the dispatch of apprentices at least 3 days before they are needed on site. You must maintain the required ratio (typically one apprentice hour for every five journeyman hours).

The Small Project Exemption

There is a narrow exemption for very small projects (under $25,000 for construction or $15,000 for maintenance). While you are exempt from the formal DIR registration and electronic eCPR filing for these tiny jobs, you are still required to pay prevailing wages and keep physical certified payroll records.