Senate Bill (SB 854) was signed into law June 20, 2014, and established a new program with the Department of Industrial Relations (DIR) that requires contractor registration for all public works, valued at $1,000 or more.
This letter is to notify all contractors/vendors that if the work or services you are providing the District or may provide to the District in the future, fall under the definition of “public works”, please ensure you are registered with DIR prior to March 1, 2015. Effective immediately, the District will notify DIR of the work or services you are providing the District are categorized as public works defined by SB854 registration requirements. We ask that you complete DIR’s online contractor registration in a timely manner to avoid interruption in the work or services you are providing.
Public works refers to construction, alteration, demolition, installation, or repair work (including maintenance) done under contract and paid by public funds. For a more detailed explanation of public works projects as defined by the California Labor Code, refer to sections 1720 et al. The new requirements will apply to all public works that are subject to the prevailing wage requirements of the Labor Code, without regard to the funding source.
Below is a DIR phase-in timetable related to SB854 requirements:
Note: Annual fees for contractor registration are set by DIR, and directly collected between the contractor and DIR.
July 1, 2014:
DIR’s newly established contractor registration program requires contractor registration for all public works projects and maintenance work valued at $1,000 or more.
March 1, 2015:
No contractor or subcontractor may be listed on a bid proposal for a public works project unless registered with DIR.
April 1, 2015:
No contractor or subcontractor may work on a public works project unless registered with DIR. No bid can be accepted nor any contract or subcontract entered into nor purchase order issued without proof that the contractor or subcontractor is registered. All projects bid before March 1, 2015, or awarded prior to April 1, 2015 will not trigger the registration requirements.
Once the registration requirement becomes mandatory (March 1, 2015, for bids and April 1, 2015, for projects awarded), an awarding body may not accept a bid or enter into a contract for public work with an unregistered contractor. DIR maintains an up-to-date listing of registered contractors.
Public Works that meet the definition of a public work and are valued at $1,000.00 or greater, are subject to prevailing wage law, pursuant to Labor Code 1771. Prevailing wage rate information can be found on the State of California Department of Industrial Relations
website at http://www.dir.ca.gov/DLSR/PWD/
The Contractor/Firm must have current California Contractors License:
The Contractor/Firm must be free of any debarment State and Federal:
State Debarment: http://www.dir.ca.gov/dlse/debar.html
Federal Debarment EPLS: https://www.sam.gov/portal/SAM/#1
There are exceptions to the registration requirement for bidders in circumstances where a California Contractor State License Board (CSLB) license would not be required at the time of bidding.
Additional exceptions and protections are included in the registration laws to limit bid challenges, allow some violations to be cured through payment of penalty fees, and allow unregistered contractors to be replaced with registered ones.
All contractors and subcontractors must furnish electronic certified payroll records directly to the Labor Commissioner (aka Division of Labor Standards Enforcement).
The phase-in timetable for this requirement is as follows:
June 20, 2014:
Any project that was being monitored by the CMU/Labor Commissioner prior to the adoption of SB 854 will continue to be monitored by the Labor Commissioner afterward, and the contractors on those projects must continue to furnish certified payroll records to the Labor Commissioner until the project is complete.
April 1, 2015:
For all new projects awarded on or after this date, the contractors and subcontractors must furnish electronic certified payroll records to the Labor Commissioner.
For projects besides those listed above, the Labor Commissioner may at any time require the contractors and subcontractors to furnish electronic certified payroll records. The Labor Commissioner anticipates requiring this for green energy school projects that receive Proposition 39 funding.
January 1, 2016:
The requirement to furnish electronic certified payroll records to the Labor Commissioner will apply to all public works projects, whether new or ongoing.
Exceptions: The Labor Commissioner may (but is not required to) excuse contractors and subcontractors from furnishing electronic certified payroll records to the Labor Commissioner on a project that is 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 that is covered by a qualifying project labor agreement.
Ongoing projects that were subject to Labor Compliance Program (LCP) or Compliance Monitoring Unit (CMU) requirements prior to the adoption of SB 854: Older projects (contract for public work was awarded prior to January 1, 2012): The LCP requirements and alternatives that applied to projects funded by Propositions 47, 55, or 84 and to certain design-build projects remain in effect. These monitoring and compliance requirements must continue to be observed through the end of the project, even if the Labor Commissioner starts monitoring the project pursuant to SB 854.
For additional information about public works requirements and registration, please visit the DIR website at
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