California AB 2143 solar prevailing wage requirements change how contractors must apply prevailing wage rules to certain commercial solar projects over 15 kilowatts (kW). These requirements affect how payroll teams calculate wages, document labor classifications, and report compliance on covered solar construction.
Because solar projects are an increasing portion of California’s construction pipeline, understanding AB 2143 is essential for payroll and compliance professionals working on commercial solar installations.
California AB 2143 is a state law that expands prevailing wage requirements to specific commercial solar projects exceeding 15 kW in capacity. Under the law, these projects are treated as public works for prevailing wage purposes when they are constructed for public agencies or under qualifying funding programs.
The law aims to ensure that workers on larger commercial solar installations receive prevailing wage protections similar to other public works projects.
For payroll teams, this means that certain solar projects previously exempt may now require prevailing wage compliance, certified payroll reporting, and fringe benefit tracking.
AB 2143 applies to contractors and subcontractors working on covered solar projects over 15 kW that meet the criteria for prevailing wage coverage in California.
Payroll and compliance teams must determine whether:
If all criteria are met, prevailing wage rules must be applied to all eligible work performed.
AB 889 Made Simple: Fringe Compliance & Annualization Rules Contractors Must Understand is a webinar created to help payroll teams working on California public works. The annualization rule has created a lot of second-guessing around fringe deposits, paycheck treatment, and what documentation actually holds up when projects get reviewed.
When AB 2143 applies, solar work must be paid at the applicable prevailing wage rates determined by the California Department of Industrial Relations.
Payroll teams must:
Work classifications and wage determinations may differ for electrical, installation, and other solar trade tasks depending on the wage survey.
For solar projects covered under AB 2143, certified payroll reports must be submitted according to California prevailing wage rules. This typically means weekly reporting that shows:
Accurate reporting demonstrates compliance and protects against wage claims or enforcement actions.
Common Payroll Challenges With Solar Prevailing Wage Requirements
Payroll teams often face challenges including:
Anticipating these challenges and building robust internal processes helps reduce errors.
To prepare, payroll and compliance teams should:
Clear internal procedures improve consistency and compliance outcomes.
Unlike the federal Davis-Bacon Act (DBA), which has prevailing wage requirements but generally does not mandate apprenticeship usage, California law is explicit and requires that contractors on public works projects participate in and use state-approved apprenticeship programs. AB 2143 carries these apprenticeship obligations over to the commercial solar projects it covers.
While both the California prevailing wage and the federal Davis-Bacon Act aim to ensure fair wages on publicly-funded or supported projects, their application and requirements differ significantly.
| Feature | California AB 2143 / State Prevailing Wage | Federal Davis-Bacon Act (DBA) |
| Applicability |
State law, covers specified private commercial solar projects (>15 kW) under NEM/NBT tariff. |
Federal law, covers federal or federally-funded construction contracts over $2,000. |
| Apprenticeship Mandate | Mandatory use of apprentices from state-approved programs (Labor Code § 1777.5). Required ratios must be maintained. | Generally not mandatory; no required ratios under the DBA itself, though may be required by other federal laws (e.g., IRA clean energy credits). |
| Wage Determination | Set by the California DIR Director, based on local collective bargaining agreements and wage surveys. | Set by the U.S. Department of Labor (DOL), based on local wage surveys. |
| Reporting | eCPRs submitted to the DIR (monthly minimum) and to the CPUC via the SURGE portal (biannually). | Certified Payroll (Form WH-347 or equivalent) submitted to the contracting agency. |
California Labor Code § 1777.5 requires contractors on public works projects to employ apprentices for a minimum number of hours, generally based on a ratio to journeypersons. This ratio varies by craft and is set by the California Apprenticeship Council.
Practical Steps for Apprenticeship Compliance:
If your company works on large commercial solar projects in California, review AB 2143 requirements now. Make sure payroll systems, wage determinations, and reporting processes are configured to handle prevailing wage rules when applicable.
Some construction payroll teams use tools like eBacon to help manage prevailing wage application, work classifications, and certified payroll workflows across different project types.
See how eBacon simplifies California prevailing wage and solar compliance. Book a quick demo.
Covered projects include commercial solar installations over 15 kW that meet prevailing wage coverage criteria in California.
No. Only those that meet the size threshold and qualifying criteria under AB 2143 and applicable funding or ownership conditions are covered.
The California Department of Industrial Relations publishes prevailing wage determinations by county and classification, which apply to covered solar work.
Certified payroll reports are typically submitted weekly for covered prevailing wage projects in California.
The material presented here is educational in nature and is not intended to be, nor should be relied upon, as legal or financial advice. Please consult with an attorney or financial professional for advice.