The California Department of Industrial Relations (“DIR”) has announced the launch of a new registration program for public works projects authorized by Senate Bill 854, which was signed into law on June 20, 2014, and became effective immediately.
In a press release issued by the DIR, the DIR states that the new program replaces the Compliance Monitoring Unit ("CMU") and Labor Compliance Program requirements for bond-funded and other public works projects. Under the new program, contractors will be required to register before bidding on and entering into contracts for state and local public works projects and awarding agencies will be required to give notice on form PWC-100 of all public works projects in the state.
For Contractors
Under the new program, contractors will be required to register before bidding and entering into pubic works contracts on state and local public works projects.
To implement the program, the DIR has established an online registration system which went live on July 1, 2014. Only contractors who have registered through the program may bid on public works projects beginning March 1, 2015 and may enter into public works contracts beginning April 1, 2015.
To register, contractors must pay an initial registration fee of $300, which will need to be renewed annually, and complete an online application showing that they:
- Have workers compensation insurance sufficient to cover any employees, as applicable;
- Have a valid contractor’s license from the California Contractors State License Board, as applicable;
- Are not subject to any delinquent wage or penalty assessments owed to an employee or the state;
- Are not currently debarred from performing work on a public works project under state or federal law; and
- Have not bid on a public works contract, been listed in a bid proposal, or performed work on a public works project without first being registered through the program, within the preceding 12 months or since the effective date of the program requirements, whichever is earlier.
In addition, replacing the now defunct “MyLCM” certified payroll submission system, contractors will be able to electronically submit certified payroll records through the DIR’s new electronic Certified Payroll Records program (“eCPR”). Electronic submission of certified payroll through eCPR applies:
- Immediately for public works projects in which contractors have been submitting certified payroll to through the DIR’s CMU;
- April 1, 2015 for public works projects awarded on or after that date;
- January 1, 2016 for all other public works projects; and
- Other projects as determined by the California Labor Commissioner.
Exceptions to the eCPR program may be made by the Labor Commissioner for public works projects covered by qualifying project labor agreements and projects subject to legacy labor compliance programs of certain agencies.
For State and Local Awarding Agencies
Under the new program, DIR will no longer charge awarding bodies for prevailing wage compliance monitoring and enforcement through the CMU. In addition:
- Requirements to use CMU or specified alternatives for state bond-funded and other specified projects have been eliminated; and
- Effective immediately, awarding agencies are now required to register and electronically submit form PWC-100 for all public works projects.
Further information on the new program can be found on the DIR’s website.
Garret Murai is a shareholder and construction attorney at Kronick Moskovitz Tiedemann & Girard. He is also the author of the construction law blog California Construction Law Blog, providing an informative yet wry look at construction law in California.