Is DIR registration required for federal only projects?

No, if the federal government awarded and fully controls the project. Yes, if a California state or local agency runs the project, even when the money behind it is federal. DIR states this directly in its public works FAQ: "Registration is not required for projects that are awarded by and under the complete control of the federal government."

The test is control, not the source of the money

DIR's FAQ answers the narrow "Davis-Bacon only" question directly, under "Is a contractor who only does Davis-Bacon work under federal contracts required to register?": "Registration is not required for projects that are awarded by and under the complete control of the federal government. However, federally funded or assisted projects that are controlled or carried out by awarding bodies in California are subject to the state's prevailing wage laws and therefore require registration." A separate entry on the same DIR FAQ, under "If an awarding body is awarded a contract directly by a federal agency, must it comply with California public works law?", adds the detail subs usually miss: those same federally funded or assisted projects, "including most highway construction projects, are subject to the state's prevailing wage laws."

That lines up with how California defines a public work in the first place. Labor Code section 1720(a)(1) defines public works as "construction, alteration, demolition, installation, or repair work done under contract and paid for in whole or in part out of public funds." The statute never asks whose stamp is on the money, only whether public funds paid for the work and who is running the contract. A federal grant or federal loan that flows through a state agency, a city, a county, a school district, or a water district still counts as public funds once it lands in that agency's contract. Our federal vs state certified payroll guide walks through this side by side with Davis-Bacon.

Three scenarios, and which one you are on

Who awards and runs the jobDIR registrationWhat you file instead or in addition
A federal agency itself: GSA, the VA, the Army Corps of Engineers, the Postal Service, a national park, a federal courthouseNot requiredWH-347 to the contracting federal agency, under Davis-Bacon
A California state or local awarding body running a project funded in part by a federal grant, loan, or insurance program, for example a city street project or a school modernization with federal dollars in the funding stackRequiredeCPR to DIR, plus WH-347 if Davis-Bacon is also triggered on the federal side
A California awarding body running a project with mixed state, local, and federal funding and no single source paying for all of itRequiredeCPR to DIR. California's prevailing wage rate applies when it exceeds the corresponding Davis-Bacon rate

Notice what does not appear anywhere in that table: the size of the federal check. A project can be almost entirely federally funded and still owe full California registration and eCPR filing, because the question DIR asks is who signed the contract and who administers it, not who wrote the biggest check.

What "Davis-Bacon only" actually describes

The phrase in DIR's own FAQ, "a contractor who only does Davis-Bacon work under federal contracts," describes a narrow group: contractors whose contracts are awarded directly by a federal agency and administered by that agency start to finish. It does not describe every contractor who happens to be paid prevailing wage on a job with federal money in it. If your contract lists a city department, a county, a school district, or a state agency as the awarding body, and the wage rates on the job are prevailing wage, you are very likely in the second row of the table above regardless of where the funding originated.

The fastest way to check is to look at the contract itself, not the funding source line in a budget document. Find the entity that signed as the awarding body and issued the notice to proceed. If that entity is a federal agency, you are in the federal-only lane. If it is any California public entity, DIR's registration and eCPR requirements apply the same way they would on a project with no federal money at all.

The small project exemption applies regardless of funding

Size, not funding source, is the other thing that changes the answer. Under the same DIR FAQ, the certified payroll reporting requirement carries "a small project exemption" for "all public works projects that do not exceed: $25,000 for new construction, alteration, installation, demolition or repair" or "$15,000 for maintenance." A California-controlled project under those thresholds does not require eCPR submission, federal money or not. DIR is explicit that this cannot be gamed: "the law does not permit jobs to be parceled in order to avoid the applicable thresholds," so splitting one job into several small purchase orders does not move you into the exemption. See our project thresholds guide for how this interacts with the separate $1,000 threshold for prevailing wage coverage itself under Labor Code 1771.

Legacy Labor Compliance Programs are a separate exception

Federally assisted highway and transit work in California is often routed through Caltrans, which is one of four agencies DIR still lets run its own approved Labor Compliance Program instead of eCPR submission to DIR directly. DIR's certified payroll reporting exemptions page lists the four: Caltrans, the City of Los Angeles, the Los Angeles Unified School District, and the County of Sacramento. Projects those agencies monitor are exempt from submitting certified payroll to DIR because the agency's own program does the monitoring instead. This exemption is about where the payroll record goes, not about registration, so do not read it as a reason to skip DIR contractor registration. See the Caltrans requirements page for how that legacy program actually works, and WH-347 vs eCPR for how the two filings relate when a project is federally assisted and state controlled.

A four step check for your own project

  • Find the awarding body. Read your contract or purchase order for the entity that awarded it, not the entity that funded it.
  • Ask if that entity is a federal agency. If yes, and the federal agency administers the job start to finish, DIR registration is not required for that project.
  • If it is a California entity, check for a legacy LCP. Caltrans, the City of Los Angeles, LAUSD, and the County of Sacramento file certified payroll through their own programs instead of eCPR.
  • Otherwise, assume both apply. DIR contractor registration and eCPR filing to DIR, on top of any WH-347 the federal funding side also requires. Our contractor registration guide covers the fees and renewal cycle, and the DIR eCPR system guide covers how the filing itself works.

Questions

Do I need to register with DIR if I only do Davis-Bacon federal work?
Not if the projects are awarded by and under the complete control of a federal agency. DIR's public works FAQ states registration is not required for those projects. But if any of your Davis-Bacon work is on a project where a California state or local agency is the awarding body, even with federal grant money paying for it, that project requires DIR registration.
Does federal funding exempt a California project from DIR registration?
No. DIR's FAQ is explicit that federally funded or assisted projects controlled or carried out by a California awarding body, including most highway construction, are subject to the state's prevailing wage laws and therefore require registration. Funding source does not change the answer; who administers the contract does.
What is the small project exemption from certified payroll reporting?
DIR exempts public works projects that do not exceed $25,000 for new construction, alteration, installation, demolition, or repair, or $15,000 for maintenance, from the requirement to submit certified payroll records. This applies regardless of whether the project has federal money in it. DIR has also stated that jobs cannot be parceled into smaller contracts to fall under these thresholds.
Is a Caltrans-funded highway project exempt from DIR eCPR filing?
Projects monitored by Caltrans, one of four legacy Labor Compliance Programs DIR still recognizes, are exempt from submitting certified payroll directly to DIR because Caltrans runs its own approved compliance program instead. That exemption covers where the certified payroll record is filed. It does not exempt the contractor from DIR public works contractor registration.
How do I know who controls my project?
Look at the contract or purchase order itself for the entity named as the awarding body, the one that issued the notice to proceed and holds the contract with you or with the prime above you. If that entity is a federal agency administering the job start to finish, you are on a federal-only project. If it is a city, county, state agency, school district, or special district, California's registration and filing rules apply even if federal dollars are funding the work.
Can a project be split into smaller contracts to avoid DIR registration or filing?
No. DIR states directly that the law does not permit jobs to be parceled in order to avoid the applicable thresholds. An awarding body or contractor structuring several small purchase orders around one larger scope of work does not create an exemption from registration or certified payroll reporting.

Not sure if your project needs it? First filing free

Send the payroll export you already run. We turn it into the WH-347 and the DIR eCPR filing, checked by software and verified by a person. Your first weekly filing is free, before you pay us anything. $995 one time setup, then $249 per month flat.

Got it. We reply the same business day. Next: we confirm your payroll system and the project, you send one export, and your first filing comes back for your review before anything is submitted.

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