The short version
- California prevailing wage (DIR) governs state and local public works over $1,000.
- Davis-Bacon governs federal and federally-assisted construction contracts over $2,000, using U.S. DOL wage determinations and the WH-347.
- When a California project uses federal money, both can apply. You generally pay the higher rate per classification and comply with both reporting systems.
- The first question on any job is not "what's the rate"; it's "where does the funding come from."
Two regimes, not one
Two prevailing-wage regimes can touch a California construction project, and they are not interchangeable. Getting them confused is how a contractor pays the "right" rate under the wrong system and still ends up underpaying on paper.
California prevailing wage (state)
Administered by the Department of Industrial Relations under Labor Code §1770 and following, California prevailing wage applies to public works over $1,000 funded by state or local agencies. The DIR director issues wage determinations by craft, county, and effective date, and contractors report through the state's eCPR system after registering with the DIR.
Davis-Bacon (federal)
The federal Davis-Bacon Act applies to contracts over $2,000 for construction, alteration, or repair of public buildings or public works to which the federal government is a party. A large family of "Davis-Bacon Related Acts" extends the same requirement to projects funded or assisted by federal dollars, which is why so much infrastructure and IIJA-funded work is covered. Wage determinations come from the U.S. Department of Labor (published via SAM.gov), organized by county and by type of construction (building, heavy, highway, residential). Certified payroll is filed weekly on form WH-347.
When both apply
A California public-works project that receives federal funding is frequently subject to both systems at once. In that situation:
- For each classification, you generally must pay the higher of the state and federal prevailing rate.
- You must satisfy both reporting obligations: state eCPR and the federal WH-347, not one or the other.
- The classifications and fringe rules do not line up perfectly between the two determinations, so the same worker can map differently in each system.
Apprenticeship differs too
California requires apprentices to be enrolled in an approved program and worked within a set ratio, with the DAS-140 and DAS-142 forms on file (the duties are Labor Code §1777.5; the forms and their deadlines are 8 CCR §230 and §230.1). Federal Davis-Bacon work relies on registered apprenticeship programs recognized by the DOL. Both care that apprentices are genuine and correctly ratioed; the paperwork proving it is not the same.
The rate is the easy part. Which determination, which forms, and which of two overlapping systems govern the job is where the money is won or lost.
How to decide, quickly
- Trace the funding. State or local money only means California prevailing wage. Any federal dollars means you assume Davis-Bacon applies as well until proven otherwise.
- Pull the right determinations. State: DIR, by craft/county/bid date. Federal: DOL, by county/construction type.
- File both records when both apply. Reconcile the classifications rather than assuming they match.
Cited to the statute
Labor Code §1770 et seq.California prevailing wage, administered by the DIR.Davis-Bacon ActFederal prevailing wage on contracts over $2,000; wage determinations via SAM.gov.Labor Code §1777.5California apprentice enrollment and ratio requirements.
This article is educational and does not constitute legal or tax advice. Statutes and agency requirements change; confirm current rules with the California DIR, the U.S. Department of Labor, the IRS, or qualified counsel before relying on them. Aeternus Dynamics is a compliance and advisory firm, not a law or accounting firm.