The Contractors State License Board (CSLB) is reminding contractors and subcontractors who work on public works projects that they must continue to keep certified payroll records while the California Department of Industrial Relations (DIR) updates its online reporting system.

Enforcement of the requirement to submit certified payroll records using DIR’s online system is in effect. DIR has additional compliance information on its Public Works page.

In a related matter, registered contractors who failed to renew by July 1 but continued working on public works after that date were be subject to late fees and potential penalties.

Contractors must be registered with DIR before bidding, being awarded or performing work on public works projects in California. DIR registration requires that all contractors be in good legal standing, which includes having a current license in good standing with CSLB.

Using any Internet-connected computer, public works contractors can:

  • Register for the first time
  • Renew an active registration
  • Reactivate a prior registration

Securely pay the nonrefundable $300 registration/renewal fee (and penalties if applicable). The registration process is finished upon processing of payment. If paying by credit card, the registration process can be completed within 24 hours.

Contractors who are not currently registered should carefully consider when to register. Any contractor who fails to register before bidding for a public works project or being awarded a public works project may be subject to a $2,000 penalty.

New features on DIR’s online registration system allow contractors to print out proof of registration and verify the status of their renewal or application on the database of qualified public works contractors. A user guide with instructions is posted online. DIR has additional compliance information on its Public Works page.

Public agencies must confirm this registration before considering a bid or awarding a public works contract, and prime contractors are required to make sure their bid team members are registered.

Federal Judge Enjoins State on AB 219

A federal district court judge has issued an injunction against the state of California on the controversial AB 219, which would have required payment of prevailing wage for material supplier drivers—specifically ready-mix concrete drivers—that went into effect July 1.

Governor Brown signed the bill in 2015 and the bill was codified as Labor Code Section 1720.9.

The Department of Industrial Relations had issued orders for registration under the new law when a lawsuit, filed in June of this year, by a group of ready-mix suppliers who asked for an injunction to stop the implementation of AB 219 while the matter was being litigated.

Construction and trucking interests joined the ready-mix suppliers in opposing the legislation, saying AB 219 was the first step in extending California Prevailing Wage Law to cover the delivery of ALL material supplies to public works projects.