Department of Industrial Relation’s New Registration Program for Public Works Projects

This past year, Governor Jerry Brown signed into law Senate Bill 854 which went to effect immediately.  The bill requires that public works contractors register through the California Department of Industrial Relations (“DIR”) in order to bid on and enter into public works contracts and requires that public agencies involved in public works projects notify contractors of the new registration requirements.

Mandatory Registration and Notice Requirements

If you’re  a public works contractor or subcontractor you now need to register through the DIR to bid and enter into public works contracts on state and local public works projects. And if you’re a state or local public agency you must provide notice of the DIR’s new registration requirements in all call for bids and contract documents.

Requirements for Contractors and Subcontractors

Under the new law, public works contractors and subcontractors are subject to the following new requirements:

1. Annual Registration: Public works contractors and subcontractors must register with the DIR annually. The current registration fee is $300 fee. While this requirement went in to effect on July 1, 2014, unregistered contractors and subcontractors may not be listed in a bid after March 1, 2015, and may not work on a public works project after April 1, 2015. 
2. Electronic Submission of Certified Payroll Records: Public works contractors and subcontractors will be required to electronically submit certified payroll records on a new certified payroll form to be provided by the DIR. Electronic submission of certified payroll records will be required on all public works projects awarded after April 1, 2015 and all public works projects, irrespective of when awarded, beginning January 1, 2016. In addition, the California Labor Commissioner may in its discretion: (a) require contractors and subcontractors to electronically submit certified payroll records; and (b) excuse contractors and subcontractors who would otherwise be required to electronically submit certified payroll records on projects under the jurisdiction of one of the four legacy DIR-approved labor compliance programs (CalTrans, City of Los Angeles, Los Angeles Unified School District, and County of Sacramento) or if the project is covered by a qualifying project labor agreement.

Requirements for Public Agencies

Under the new law, state and local public agencies are subject to the following new requirements:

1. Electronic Submission of PWC 100 Form: State and local public agencies must electronically submit a PWC 100 form within 5 days of the award of every public works contract. This requirement went into effect on July 1, 2014. PWC 100 forms can be submitted electronically on the DIR website. 
2. Notice Requirements: Beginning January 1, 2015, state and local public agencies must include the following information in all call for bids and contract documents: (a) no contactor or subcontractor may be listed on a bid proposal for a public works project unless they are registered with the DIR; (b) no contractor or subcontractor may be awarded a public works contract unless registered with the DIR; and (c) work performed on the project is subject to compliance monitoring and enforcement by the DIR. 
3. Rejection of Bids Submitted by Unregistered Contractors: Beginning March 1, 2015, state and local public agencies may not accept a bid from a contractor that is not registered with the DIR. Public agencies can confirm whether a contractor is registered on the DIR website.
4. No Contracts With Unregistered Contractors: Beginning April 1, 2015, state and local public agencies may not enter into a contract with a contractor that is not registered with the DIR. 
5. Job Site Notices: On a date yet to be determined, state and local public agencies must post, or require its direct contractor to post, job site notices in compliance with Title 8 of the California Code of Regulations Section 16451(d).

Further information on the new requirements can be found on the DIR website.