Prevailing Wage Compliance & Defense for California Contractors

California's prevailing wage laws are among the most comprehensive in the country. Under the California Labor Code and regulations administered by the Department of Industrial Relations (DIR), contractors and subcontractors performing work on public works projects are required to pay workers the "prevailing wage" — a wage rate determined by the DIR based on the type of work and the location of the project.

Failure to comply with prevailing wage requirements can result in substantial penalties, including back wage assessments, liquidated damages, debarment from future public contracts, and civil liability. For many contractors, a prevailing wage audit or claim can represent a serious financial and operational threat.

At NewPoint Law Group, LLP, our attorneys assist contractors, subcontractors, and construction businesses in understanding and complying with California's prevailing wage framework, and in defending against claims and agency investigations.

How We Can Help

• Prevailing Wage Compliance Counseling: We help contractors determine whether their projects are subject to prevailing wage requirements, identify the correct wage rates and classifications, and implement compliant certified payroll recordkeeping practices.

• DIR Registration and Public Works Requirements: Since 2014, contractors and subcontractors performing work on public works projects in California are required to register with the DIR. We assist with DIR registration and help businesses understand their ongoing compliance obligations.

• Prevailing Wage Audit Defense: When the Labor Commissioner's Office or a DIR investigator initiates an audit or investigation, we work with contractors to respond to document requests, assess potential exposure, and pursue the most favorable resolution available under the circumstances.

• Wage Claim Defense: Prevailing wage claims can be filed by workers, labor unions, or the Labor Commissioner. We represent contractors in defending against these claims at both the administrative and judicial levels.

• Subcontractor Risk Management: Prime contractors can face liability for their subcontractors' prevailing wage violations. We assist in structuring subcontract agreements and compliance monitoring programs to help manage this downstream risk.

California's prevailing wage statutes apply to a wide range of public works projects — including those funded by state, county, city, and special district funds — and the applicable wage determinations and work classifications can be complex. Contractors operating in the Sacramento region and throughout Northern California work with our attorneys to address these compliance challenges proactively.

The information provided on this page is for general informational purposes only and does not constitute legal advice. Outcomes in any legal matter depend on the specific facts and circumstances involved.