Changes to DIR Prevailing Wage Monitoring Program (K-12)

Effective July 1, 2017, the following changes have been made to the Department of Industrial Relations (“DIR”) Prevailing Wage Monitoring Program, as codified in Labor Code §§ 1725.5 and 1770 et seq.:

LEGAL UPDATE

July 6, 2017

To:  Superintendents, Member School Districts (K-12) – Humboldt County

From: Loren W. Soukup, Senior Associate General Counsel

Subject: Changes to DIR Prevailing Wage Monitoring Program

Memo No. 18-2017


Effective July 1, 2017, the following changes have been made to the Department of Industrial Relations (“DIR”) Prevailing Wage Monitoring Program, as codified in Labor Code §§ 1725.5 and 1770 et seq.:

  1. Local educational agencies now have 30 days from the award of the contract, but no later than the first day in which a contractor has workers employed upon the public work, to file the PWC-100 form with DIR. The previous law required a 5 day timeline.
  2. PWC-100 forms must now be filed for public works projects (construction, alteration, demolition, installation, or repair work) over $25,000 (previously $1,000).
  3. PWC-100 forms must be filed for maintenance projects over $15,000 (previously $1,000).
  1. Annual registration fees for public works contractors have increased from $300 or $400.
  1. The Labor Commissioner will now be able to assess penalties of up to $8,000 against public works contractors for failing to register with DIR. Public works contractors will also be assessed penalties of up to $10,000 for hiring unregistered subcontractors.
  1. Local educational agencies will now be subject to penalties of up to $10,000, for hiring an unregistered contractor to perform work on a public works project. 
  1. Final payment due to a public works contractor must be withheld until at least 30 days after the PWC-100 form and all required information has been submitted to DIR. If the local educational agency makes final payment to the contractor after the 30 days and an unregistered contractor or subcontractor is found to have worked on the project, the local educational agency is subject to a fine of $100 for each full calendar day of noncompliance, for a period of up to 100 days, for each unregistered contractor or subcontractor.

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The information in this Legal Update is provided as a summary of law and is not intended as legal advice.  Application of the law may vary depending on the particular facts and circumstances at issue.  We, therefore, recommend that you consult legal counsel to advise you on how the law applies to your specific situation.

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