From June 20, 2014 all contractors on public works must be registered and furnish certified payroll records to the labor Commissioner until the project is complete. On or after March 1, 2015 the law requires that only registered contractors and subcontractors be listed on bids. On or after April 1, 2015, on any new public works projects awarded the contractor and subcontractors must not only be registered but also furnish electronic certified payroll records to the Labor Commissioner. To register Contractors will apply on line on the California Department of Public Relations web site and pay an annual renewal fee which was initially set at $300. The minimum requirements for contractors are:
- Must have workers’ compensation coverage for any employees and only use subcontractors who are registered public works contractors.
- Must have Contractors State License Board License if applicable to the trade bidding upon.
- Must have no delinquent unpaid wage or penalty assessments owed to any employee or enforcement agency.
- Must not be under federal or state debarment.
- Must not be in prior violation of the registration requirement. However, for the first violation in a 12 month period a contractor may still qualify for registration by paying an additional penalty.
It should be noted that:
- a contractor won’t be considered in violation for working on a private job that is later determined to be a public work.
- the inadvertent listing of an unregistered subcontractor on a bid won’t necessarily invalidate that bid.
- a contract with an unregistered contractor or subcontractor is subject to cancellation but is not void as to past work.
- an unregistered contractor or subcontractor can be replaced with one who is registered.
- a contractor whose registration lapses has a 90 day grace period within which to pay a late fee and renew.