California Labor Code 1725.5, explained

What section 1725.5 requires

You must be registered with DIR to be qualified to bid on a public works contract, to be listed in a bid proposal, or to do the work. "Contractor" includes a subcontractor, using the definition in Labor Code 1722.1. The main exemption is subdivision (f): projects of $25,000 or less, or $15,000 or less for maintenance. DIR lists $400 for one fiscal year. The penalties for working unregistered are in section 1771.1, covered below.

Who has to register

Everyone who bids on or does covered work, at every tier. DIR's public works FAQ defines a public works contractor as anyone who bids on or enters into a contract to perform work that requires prevailing wages. That includes subcontractors, and sole proprietors and brokers responsible for the work, even with no employees. Two main limits:

• Federal only projects. DIR's FAQ says registration is not required for projects awarded by and under the complete control of the federal government. A federally funded project run by a California awarding body does require it. See federal only projects.
• Small projects. Subdivision (f), below.

Subdivision (a): the fee and what you must show

(a)(1): fee and term

Under subdivision (a)(1), you register with DIR "in the manner prescribed by the department," pay an initial nonrefundable application fee, and pay an annual renewal fee on or before July 1 each year after. The statute does not write the amount. In the text now in force, it lets the director set annual fees of up to $800 by publishing them on DIR's website; fees above $800 need formal rulemaking. That $800 is the limit in force now. SB 909 (Statutes of 2026, chapter 660), signed September 27, 2026, raises that limit to $1,000, and fees above $1,000 would need formal rulemaking. It has no urgency clause, so it takes effect January 1, 2027 under article IV, section 8(c)(1) of the California Constitution. The bill also changes other amounts in the prevailing wage laws; see what SB 909 changes. DIR's registration page lists $400, $800, or $1,200 for one, two, or three fiscal years, July 1 to June 30, which fits (a)(1)(B): annual steps of up to three years, prepaid. Under (b), fees go to the State Public Works Enforcement Fund, which section 1771.3 limits to registration and enforcement costs.

(a)(2): five things you must show

Under subdivision (a)(2), you provide the evidence, disclosures, or releases needed to establish all five of these:

• (A) Workers' compensation. Coverage that includes any worker you employ on prevailing wage work, other than a contractor who is separately registered under this section. It can be shown by a current and valid certificate of workers' compensation insurance or a certification of self-insurance.
• (B) License. A contractor's license, if one applies to your trade.
• (C) No unpaid judgments. No delinquent liability to an employee or the state for back wages, damages, interest, fines, or penalties under a final judgment, order, or determination. One under appeal does not disqualify you if payment is secured by a bond or other appropriate means.
• (D) No debarment. You are not currently debarred.
• (E) No unregistered bidding, listing, or work in the last 12 months, including on section 1725.6 projects. You must not have bid on a public works contract, been listed in a bid proposal, or worked on public works without being lawfully registered. For a first violation in 12 months, the disqualification is waived if you pay a $2,000 penalty registration fee.

Subdivisions (c) through (e) and (g)

• (c) Missing the renewal. You cannot bid on or perform public work until you register again. If the miss was inadvertent, you can renew retroactively within 90 days of the due date by paying a penalty equal to the renewal fee. If you bid on, were awarded, or worked on public works after your registration expired, DIR's page lists a penalty of $400 for an accidental lapse or $2,000 for any other, when you renew from July 1 to September 30, and $2,000 after that. DIR's FAQ speaks of renewing by June 30, so plan on June 30.
• (d) Work later ruled public works. If the awarding body did not identify work as public work in its bid documents, and a determination by the Director of Industrial Relations or a court later says it is, the rule does not apply to that earlier work if you and your subs register, or are replaced by registered contractors, within 20 days after notice is served on the awarding body. The requirement applies to later bids, contracts, and work after the awarding body is served with notice.
• (e) Dates. The rule covers bids submitted on or after March 1, 2015, contracts executed on or after April 1, 2015, and public work performed on or after January 1, 2018, whenever the contract was signed.
• (g) The sister registration. Section 1725.6 is a companion registration for certain projects or developments. If you have paid and are registered under 1725.6, you do not pay the 1725.5 fee as well.

Subdivision (f): the small project exemption

Section 1725.5 "does not apply to work performed on a public works project" of $25,000 or less for construction, alteration, demolition, installation, or repair, or $15,000 or less for maintenance work. The statute measures the project, not your subcontract. DIR's FAQ says the amount is for the entire contract between the awarding body and the prime contractor.

Examples only. These amounts are made up to show how the line works.

Exempt from registration is not exempt from everything. The FAQ says contractors on these projects still keep certified payroll records and give them to the Labor Commissioner on request. Section 1771.4(a)(4) says an unregistered contractor on such a project keeps its section 1776 records for at least three years after the work. More in which small jobs are exempt.

Subdivision (h): the July 1, 2026 version

Subdivision (h) of the text now in force says the section "shall become operative on July 1, 2026." The earlier text is where you find the version marked operative only until that date, in DIR's compilation of prevailing wage laws (revised February 1, 2025). Subdivision (f) is word for word the same in both, so the $25,000 and $15,000 lines did not move. The earlier (a)(1)(A) wrote a $400 initial application fee into the statute. The current one drops the amount and adds the $800 cap. From January 1, 2027, SB 909 raises that cap to $1,000.

A second change is signed but not yet in force. SB 909 (Statutes of 2026, chapter 660) amends section 1725.5, and Governor Newsom's September 27, 2026 update lists it among the bills he signed. The chaptered text raises the cap in (a)(1)(A) from $800 to $1,000 and keeps subdivision (h) as written. It has no urgency clause, so it takes effect January 1, 2027. Until then, $800 is the limit in force. The $25,000 and $15,000 lines in (f) are not changed by SB 909.

What happens if you work unregistered

The penalties are in section 1771.1. The Labor Commissioner can assess a forfeit of $100 for each day of work performed in violation, up to $8,000, plus any penalty registration fee (1771.1(g)). The Labor Commissioner must also issue a stop order barring you from all public works until you register (1771.1(j)). A higher tier contractor that hires an unregistered sub can owe up to $10,000 (1771.1(h)(1)). These penalties do not apply to work on projects within the small project exemption (1771.1(n)). See our contractor registration guide.

How to register or renew

Register on DIR's Public Works Website Services portal at services.dir.ca.gov/pw. If you have not created a new account since May 24, 2024, DIR says you must create one for your contractor. DIR's renewal guide shows the form. DIR says credit card payments can be processed within 24 hours, and other payments can delay registration up to eight weeks. To check a sub, DIR's Contractors page links a search of active registrations.

Registration comes before filing

DIR's FAQ says a contractor must have an active registration to request to be added to a public works project. Once you are registered, the next job is the payroll filing. WellStanding prepares the WH-347 and the eCPR from the payroll export you already run, and a person reviews every filing. You review the finished filing and sign the certification in one step, and nothing is filed until you have signed. The certification is always yours; we never sign for you. To hand it over, start with the first filing free.

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