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Real Estate Legal Alert
March 23, 2016              

The DIR Calls Timeout On Its New Electronic Certified Payroll Reporting Requirements

The California Department of Industrial Relations (DIR) recently issued a follow-up notice to public works contractors and agencies to clarify the DIR's current enforcement of its Electronic Certified Payroll (eCPR) requirements. SB 854 was the reform legislation requiring contractors and subcontractors on most public works projects to upload certified payroll records (CPRs) to the Labor Commissioner on a regular basis. The DIR deployed the new eCPR system in June 2015 and thousands of contractors have successfully used it. According to the DIR's notice issued on March 15, 2016, however, minor glitches and user difficulties have been encountered in the DIR's new reporting system. Before requiring all contractors to start using it, the DIR decided to address those irregularities and make improvements.

Keeping appropriate CPRs still required

The DIR's notice made it clear that keeping appropriate CPRs is still mandatory. In addition, the notice indicated that the eCPR system has not been shut down. "[I]t is still up and running, and contractors can choose to continue submitting CPRs through that system." In other words, those contractors who have had success using the new system can and should continue to do so.

Requirements for the awarding authorities remain in place

Significantly, all requirements remain in place for the awarding authorities (i.e., their duty to register all public works projects using the PWC-100 form). In addition, the requirement that contractors and subcontractors be registered with the DIR before bidding or working on a public works contract remains the law in California. Stay tuned to the DIR website for further developments.

Grady Patrick J Patrick J. Grady
Labor & Employment
Orange County
(949) 851-5431
(949) 553-8354 (fax)
Email Patrick