California Public Works Contractors Must Register With State by March 2015

by Best Best & Krieger LLP
Contact

The California Legislature imposed a new registration requirement for contractors and subcontractors involved in public works projects. Senate Bill 854, passed in June, created a registration program, which went into effect on July 1, to fund the Department of Industrial Relations’ monitoring and enforcement of prevailing wage laws.

The registration period is open now, and contractors and subcontractors wishing to work on a public works project must be registered by March 1, 2015. For public agencies/awarding bodies, the new law requires that all public works projects with bids submitted after March 1, 2015, or awarded on or after April 1, 2015, use only registered contractors and subcontractors. The bill also requires public agencies to include notice of the registration requirement in their bid invitations and bid documents.

Public agencies must additionally file notice of their public works projects with DIR using DIR form PWC-100 (contract award notice) for all public works projects. This requirement previously applied to about 90 percent of all projects.

Contractor and subcontractor registration is completed through an online application and requires a non-refundable $300 fee to be paid by the contractors and subcontractors. Contractors must pay an annual renewal fee by July 1 of each year. The registration form is located on the DIR’s website.

The registration process requires contractors to:

  • Provide workers’ compensation coverage to employees;
  • Hold a valid Contractors State License Board license if required for their trade;
  • Have no delinquent unpaid wage or penalty assessments;
  • Not be subject to federal or state debarment; and
  • Have no prior violation of the registration requirement once it becomes effective (First-time violators can avoid a 12-month disqualification by paying a penalty).

Once registration becomes mandatory early next year, contractors will also be subject to penalties for bidding or working on public works without being registered with DIR. However, contractors will not be in violation for working on a private job that is later determined to be public work.

Contractors and subcontractors on all public works projects will be required to submit certified payroll records to the Labor Commissioner unless excused from this requirement, which will be phased in, according to the DIR, as follows:

  • Will apply immediately to projects that have already been under CMU monitoring
  • Will apply to new projects awarded on or after April 1, 2015
  • May apply to other projects as determined by the Labor Commissioner
  • Will apply to all projects, new or ongoing, on and after Jan. 1, 2016

The Labor Commissioner may make exception to this requirement for:

  • Project covered by qualifying project labor agreement
  • Projects undertaken by one of four remaining awarding bodies with legacy Labor Compliance Programs, so long as those LCPs remain approved by DIR. These LCPs include the California Department of Transportation, City of Los Angeles, County of Sacramento and Los Angeles Unified School District.

Public agencies can replace an unregistered contractor or subcontractor with one who is registered, but contracts with unregistered contractors or subcontractors are not void as pertaining to past work. Also, receiving a bid with an inadvertent listing of an unregistered contractor or subcontractors will not necessarily invalidate that bid, especially since a contractor whose registration has lapsed has a grace period within which to become current.

To help awarding bodies and contractors comply with the new requirements, the DIR will post a database of registered contractors and subcontractors on its website.

The new registration system, based upon models in place in New Mexico and New Jersey, replaces the previous requirement that awarding bodies pay for costs to monitor and enforce compliance with prevailing wage laws for certain public works projects. Registration and renewal fees will go into the State Public Works Enforcement Fund, which provides for the administration of contractor registration, monitoring and enforcement of prevailing wage laws and the enforcement of Labor Code violations on public works projects by the DIR.

Previously, these activities were funded through billing awarding bodies for services provided on Compliance Monitoring Unit projects, a portion of the Labor Enforcement and Compliance Fund assessment charged to all California employers, the general fund and a handful of other sources.

The new program will cover all public works projects in the state rather than just selected categories of projects. The Labor Commissioner’s Office will continue to monitor and enforce prevailing wage requirements.

*This article first appeared in PublicCEO on Aug. 19, 2014. Reprinted with permission.

- See more at: http://www.bbknowledge.com/land-use/california-public-works-contractors-must-register-with-state-by-march-2015/#sthash.PXtrk4C9.dpuf

The California Legislature imposed a new registration requirement for contractors and subcontractors involved in public works projects. Senate Bill 854, passed in June, created a registration program, which went into effect on July 1, to fund the Department of Industrial Relations’ monitoring and enforcement of prevailing wage laws.

The registration period is open now, and contractors and subcontractors wishing to work on a public works project must be registered by March 1, 2015. For public agencies/awarding bodies, the new law requires that all public works projects with bids submitted after March 1, 2015, or awarded on or after April 1, 2015, use only registered contractors and subcontractors. The bill also requires public agencies to include notice of the registration requirement in their bid invitations and bid documents.

Public agencies must additionally file notice of their public works projects with DIR using DIR form PWC-100 (contract award notice) for all public works projects. This requirement previously applied to about 90 percent of all projects.

Contractor and subcontractor registration is completed through an online application and requires a non-refundable $300 fee to be paid by the contractors and subcontractors. Contractors must pay an annual renewal fee by July 1 of each year. The registration form is located on the DIR’s website.

The registration process requires contractors to:

  • Provide workers’ compensation coverage to employees;
  • Hold a valid Contractors State License Board license if required for their trade;
  • Have no delinquent unpaid wage or penalty assessments;
  • Not be subject to federal or state debarment; and
  • Have no prior violation of the registration requirement once it becomes effective (First-time violators can avoid a 12-month disqualification by paying a penalty).

Once registration becomes mandatory early next year, contractors will also be subject to penalties for bidding or working on public works without being registered with DIR. However, contractors will not be in violation for working on a private job that is later determined to be public work.

Contractors and subcontractors on all public works projects will be required to submit certified payroll records to the Labor Commissioner unless excused from this requirement, which will be phased in, according to the DIR, as follows:

  • Will apply immediately to projects that have already been under CMU monitoring
  • Will apply to new projects awarded on or after April 1, 2015
  • May apply to other projects as determined by the Labor Commissioner
  • Will apply to all projects, new or ongoing, on and after Jan. 1, 2016

The Labor Commissioner may make exception to this requirement for:

  • Project covered by qualifying project labor agreement
  • Projects undertaken by one of four remaining awarding bodies with legacy Labor Compliance Programs, so long as those LCPs remain approved by DIR. These LCPs include the California Department of Transportation, City of Los Angeles, County of Sacramento and Los Angeles Unified School District.

Public agencies can replace an unregistered contractor or subcontractor with one who is registered, but contracts with unregistered contractors or subcontractors are not void as pertaining to past work. Also, receiving a bid with an inadvertent listing of an unregistered contractor or subcontractors will not necessarily invalidate that bid, especially since a contractor whose registration has lapsed has a grace period within which to become current.

To help awarding bodies and contractors comply with the new requirements, the DIR will post a database of registered contractors and subcontractors on its website.

The new registration system, based upon models in place in New Mexico and New Jersey, replaces the previous requirement that awarding bodies pay for costs to monitor and enforce compliance with prevailing wage laws for certain public works projects. Registration and renewal fees will go into the State Public Works Enforcement Fund, which provides for the administration of contractor registration, monitoring and enforcement of prevailing wage laws and the enforcement of Labor Code violations on public works projects by the DIR.

Previously, these activities were funded through billing awarding bodies for services provided on Compliance Monitoring Unit projects, a portion of the Labor Enforcement and Compliance Fund assessment charged to all California employers, the general fund and a handful of other sources.

The new program will cover all public works projects in the state rather than just selected categories of projects. The Labor Commissioner’s Office will continue to monitor and enforce prevailing wage requirements.

*This article first appeared in PublicCEO on Aug. 19, 2014. Reprinted with permission.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Best Best & Krieger LLP | Attorney Advertising

Written by:

Best Best & Krieger LLP
Contact
more
less

Best Best & Krieger LLP on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
Sign up using*

Already signed up? Log in here

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Privacy Policy (Updated: October 8, 2015):
hide

JD Supra provides users with access to its legal industry publishing services (the "Service") through its website (the "Website") as well as through other sources. Our policies with regard to data collection and use of personal information of users of the Service, regardless of the manner in which users access the Service, and visitors to the Website are set forth in this statement ("Policy"). By using the Service, you signify your acceptance of this Policy.

Information Collection and Use by JD Supra

JD Supra collects users' names, companies, titles, e-mail address and industry. JD Supra also tracks the pages that users visit, logs IP addresses and aggregates non-personally identifiable user data and browser type. This data is gathered using cookies and other technologies.

The information and data collected is used to authenticate users and to send notifications relating to the Service, including email alerts to which users have subscribed; to manage the Service and Website, to improve the Service and to customize the user's experience. This information is also provided to the authors of the content to give them insight into their readership and help them to improve their content, so that it is most useful for our users.

JD Supra does not sell, rent or otherwise provide your details to third parties, other than to the authors of the content on JD Supra.

If you prefer not to enable cookies, you may change your browser settings to disable cookies; however, please note that rejecting cookies while visiting the Website may result in certain parts of the Website not operating correctly or as efficiently as if cookies were allowed.

Email Choice/Opt-out

Users who opt in to receive emails may choose to no longer receive e-mail updates and newsletters by selecting the "opt-out of future email" option in the email they receive from JD Supra or in their JD Supra account management screen.

Security

JD Supra takes reasonable precautions to insure that user information is kept private. We restrict access to user information to those individuals who reasonably need access to perform their job functions, such as our third party email service, customer service personnel and technical staff. However, please note that no method of transmitting or storing data is completely secure and we cannot guarantee the security of user information. Unauthorized entry or use, hardware or software failure, and other factors may compromise the security of user information at any time.

If you have reason to believe that your interaction with us is no longer secure, you must immediately notify us of the problem by contacting us at info@jdsupra.com. In the unlikely event that we believe that the security of your user information in our possession or control may have been compromised, we may seek to notify you of that development and, if so, will endeavor to do so as promptly as practicable under the circumstances.

Sharing and Disclosure of Information JD Supra Collects

Except as otherwise described in this privacy statement, JD Supra will not disclose personal information to any third party unless we believe that disclosure is necessary to: (1) comply with applicable laws; (2) respond to governmental inquiries or requests; (3) comply with valid legal process; (4) protect the rights, privacy, safety or property of JD Supra, users of the Service, Website visitors or the public; (5) permit us to pursue available remedies or limit the damages that we may sustain; and (6) enforce our Terms & Conditions of Use.

In the event there is a change in the corporate structure of JD Supra such as, but not limited to, merger, consolidation, sale, liquidation or transfer of substantial assets, JD Supra may, in its sole discretion, transfer, sell or assign information collected on and through the Service to one or more affiliated or unaffiliated third parties.

Links to Other Websites

This Website and the Service may contain links to other websites. The operator of such other websites may collect information about you, including through cookies or other technologies. If you are using the Service through the Website and link to another site, you will leave the Website and this Policy will not apply to your use of and activity on those other sites. We encourage you to read the legal notices posted on those sites, including their privacy policies. We shall have no responsibility or liability for your visitation to, and the data collection and use practices of, such other sites. This Policy applies solely to the information collected in connection with your use of this Website and does not apply to any practices conducted offline or in connection with any other websites.

Changes in Our Privacy Policy

We reserve the right to change this Policy at any time. Please refer to the date at the top of this page to determine when this Policy was last revised. Any changes to our privacy policy will become effective upon posting of the revised policy on the Website. By continuing to use the Service or Website following such changes, you will be deemed to have agreed to such changes. If you do not agree with the terms of this Policy, as it may be amended from time to time, in whole or part, please do not continue using the Service or the Website.

Contacting JD Supra

If you have any questions about this privacy statement, the practices of this site, your dealings with this Web site, or if you would like to change any of the information you have provided to us, please contact us at: info@jdsupra.com.

- hide
*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.
Feedback? Tell us what you think of the new jdsupra.com!