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California Certified Payroll Penalties (2026 and 2027 Rates)

Updated November 1, 2026. General information, not legal advice.

California backs its certified payroll and prevailing wage rules with daily penalties that add up quickly, often per worker. In September 2026 the Legislature passed SB 909, which raises several of them on January 1, 2027. This guide lists the amounts in force today, what changes in 2027, and how each penalty is triggered.

Penalty table: 2026 vs. 2027

Violation Statute Through Dec. 31, 2026 From Jan. 1, 2027 (SB 909)
Records not furnished within 10 days of a written request Labor Code 1776(h) $100 per calendar day, per worker $140 per calendar day, per worker
eCPR not submitted to the Labor Commissioner Labor Code 1771.4 $100 per day, max $5,000 per project Unchanged
Paying less than prevailing wage Labor Code 1775 Up to $200 per day per worker; minimums $40, $80 or $120 Up to $280; minimums $56, $112 or $168
Working without DIR registration Labor Code 1771.1(g) $100 per day, max $8,000 Not amended by SB 909
Using an unregistered subcontractor Labor Code 1771.1(h) $100 per day, max $10,000 Not amended by SB 909

These are civil penalties. Back wages owed to workers are a separate issue.

Why January 1, 2027: SB 909 and the constitutional default

SB 909 (Smallwood-Cuevas, “Public works”) was approved by the Governor and chaptered on September 27, 2026 as Chapter 660, Statutes of 2026. Its status page lists it as non-urgency. It amends Labor Code 1725.5, 1771.3, 1775, 1776 and 1777.7, and Public Contract Code 2603.

The bill does not state its own effective date. The date comes from the California Constitution, article IV, section 8(c)(1): “a statute enacted at a regular session shall go into effect on January 1 next following a 90-day period from the date of enactment.” Ninety days from September 27, 2026 runs to December 26, 2026, so the next January 1 is January 1, 2027.

That is our reading of the default rule, since we found no operative-date clause in SB 909. If a violation spans the change, ask counsel or the Labor Commissioner which rate applies.

Labor Code 1776(h): late response to a records request

When someone with a right to your payroll records sends a written request, you have 10 days after receipt to file a certified copy with the requesting entity. If you miss it, Labor Code 1776(h) imposes a penalty of $100 for each calendar day, or portion of a day, for each worker, until you strictly comply. On request of the Division of Labor Standards Enforcement, the penalty can be withheld from your progress payments.

The per-worker multiplier is what makes this penalty expensive:

Crew size Days late Rate through 2026 Rate from 2027
6 workers 5 days 6 x 5 x $100 = $3,000 6 x 5 x $140 = $4,200
12 workers 10 days 12 x 10 x $100 = $12,000 12 x 10 x $140 = $16,800

A prime contractor is not liable for a subcontractor’s failure under this section. Each employer answers for its own records.

Labor Code 1771.4: missed eCPR uploads

Contractors and subcontractors must submit certified payroll to the Labor Commissioner electronically at least monthly. For failing to do so, Labor Code 1771.4 allows a penalty of $100 for each day in violation, up to $5,000 per project. The statute builds in a 14-day period before this penalty can be levied, and only the contractor or subcontractor that failed to submit is liable.

SB 909 does not amend 1771.4, so these amounts stay the same in 2027. See how to submit certified payroll to the DIR for the filing rules.

Labor Code 1775: underpaying prevailing wage

Labor Code 1775 sets a penalty of up to $200 for each calendar day, per worker paid less than the prevailing rate. The Labor Commissioner sets the amount within that cap, with minimums that depend on the contractor’s history:

Situation Minimum through 2026 Minimum from 2027
Standard minimum $40 $56
Prior violation within 3 years $80 $112
Willful violation $120 $168
Maximum per day per worker $200 $280

Underpayment often starts with a classification or rate error on the certified payroll itself, so these checks belong in your weekly routine: right craft, right wage determination, correct overtime rate, and fringes credited the way the record says.

Labor Code 1771.1: working without DIR registration

Contractors and subcontractors on public works must be registered with DIR. Under Labor Code 1771.1:

  • An unregistered contractor or subcontractor faces $100 per day, up to $8,000 (1771.1(g)).
  • A higher-tier contractor that uses an unregistered subcontractor faces $100 per day, up to $10,000 (1771.1(h)).
  • The Labor Commissioner can issue a stop order halting the unregistered work (1771.1(j)).

SB 909 does not amend 1771.1. DIR also charges its own late-registration penalties: $400 for an accidental lapse renewed between July 1 and September 30, $2,000 if the lapse was not accidental, and $2,000 for first-time registrants who bid on, were awarded or worked on public works in the prior 12 months. DIR says a contractor found in violation twice in 12 months can be disqualified from public works for up to 12 months at a time. Our DIR registration guide covers renewal in detail.

Penalties can stack

Each of these sections is separate. One bad stretch on a job can trigger more than one: for example, missing monthly eCPR uploads and then missing the 10-day deadline on a written request for the same weeks. Registration lapses can also stop the work itself.

How to stay clear

  • Put the eCPR 30-day window and the July 1 registration renewal on the company calendar.
  • Treat every written records request as a 10-day emergency, and keep a log of when each one arrived.
  • Check each worker’s classification and rate against the wage determination before you sign.
  • Verify each sub’s DIR registration before it starts work.
  • Keep payroll records organized by project so a request takes hours, not days.

If certified payroll is falling behind, our pilot program prepares the weekly payroll reports and eCPR file from the payroll you already run, checked by a person before you sign.

We checked SB 909 and AB 538 (2025) against these sections. Other 2026 bills could also touch them, so confirm current text on leginfo before you rely on any figure here.

Sources

Frequently asked questions

What is the penalty for not providing certified payroll records on request in California?

Under Labor Code 1776(h), $100 per calendar day, or portion of a day, for each worker, until strict compliance. SB 909 raises it to $140 starting January 1, 2027.

What is the penalty for not uploading eCPR to the DIR?

Labor Code 1771.4 allows $100 for each day in violation, up to $5,000 per project, and only the party that failed to submit is liable. SB 909 does not change this penalty.

When do the SB 909 penalty increases take effect?

January 1, 2027. SB 909 was signed on September 27, 2026 as a non-urgency statute. Under the California Constitution, it takes effect on January 1 following a 90-day period from enactment. The bill itself contains no separate operative date that we found.

Is a prime contractor liable for a subcontractor's late certified payroll?

Not for the 1776(h) penalty: the statute says a contractor is not subject to a penalty for a subcontractor's failure to comply. The 1771.4 eCPR penalty also falls only on the party that failed. A prime can still face its own penalty for using an unregistered sub under Labor Code 1771.1(h).