State of California Edmund G. Brown Jr. Governor. D e p a r t m e n t o f I n d u s t r i a l R e l a t i o n s

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1 State of California Edmund G. Brown Jr. Governor D e p a r t m e n t o f I n d u s t r i a l R e l a t i o n s

2 John Cumming Special Counsel to the Director of Industrial Relations

3 Public Works at DIR Office of the Director Prevailing Wage Determinations [Labor Statistics and Research Office within OPRL (formerly DLSR)] Coverage Determinations Enforcement Appeals Labor Compliance Programs Oversight

4 Public Works at DIR Labor Commissioner s Office (also known as Division of Labor Standards Enforcement) Public Works Contractor Registration Project Registration (PWC-100) electronic Certified Payroll Reporting Compliance Monitoring and Enforcement

5 Public Works at DIR Division of Apprenticeship Standards Public Works Apprenticeship Requirements Information, forms, and lists of approved programs and registered apprentices Office of Information Services Development, upgrade, and maintenance of automated systems for all of the above

6 Public Works Regulation in the State of California A brief history [P]ublic works means: Construction, alteration, demolition, installation, or repair work done under contract and paid for in whole or in part out of public funds (Section 1720(a)(1))

7 Public Works Regulation in the State of California A brief history Eight hours shall constitute a legal day s work on all public work. Source? First minimum wage on public works How much? When?

8 Public Works Regulation in the State of California A brief history (continued) Payroll Reporting on Public Works Public Wage Rate Act of California Labor Code adopted DIR determines Prevailing Wage Rates Certified Payroll Reporting (current format)

9 Information and Reporting Systems 1973 Notice of Award of Public Works Contract [Labor Code ] DAS Prevailing Wage Rates [Labor Code 1773] Available from Div. of Labor Statistics & Research 1980 Certified Payroll Reporting Form [Labor Code 1776] DLSE Form A Late 1990 s Information began migrating to DIR Website

10 SBX2-9 and Compliance Monitoring Unit Project Registration [Notice of Contract Award under Labor Code ] DAS 13 became PWC-100 Database of Public Works Projects electronic Certified Payroll Reporting (ecpr) Initially through MyLCM April 2013 May 2015: PDF copies of CPR form associated with PWC-100 for CMU projects

11 SB854 [2014 Reform Measure] Public Works Contractor Registration [New] Began July 1, 2014; mandatory Spring 2015 Public Works Project Registration using PWC-100 Expanded to all projects effective June 20, 2014 electronic Certified Payroll Reporting (ecpr) Phased in beginning April 1, 2015 New electronic system launched June 2015

12 SB854 [2014 Reform Measure] What SB 854 did NOT do -- Did NOT change the definition of public works under the California Labor Code. Did NOT change what types of contractors and work are subject to prevailing wage requirements.

13 Awarding Body Responsibilities Obtain prevailing wage rates from DIR (Labor Code 1773) Include notice in bid invitations and contracts that: 1. Public works contractors and subcontractors must be registered with DIR, as specified in Labor Code (a) 2. Project subject to compliance monitoring and enforcement by DIR Only accept bids from and enter into public works contracts with registered contractors and subcontractors. Use DIR s contractor search tool (shown previously) to determine if a contractor or subcontractor is registered.

14 Awarding Body Responsibilities (continued) Register a project with DIR, using the online PWC-100 form, within five days after awarding the contract for the project. This previously applied to projects using apprentices and CMU projects. It now applies to all public works projects. Failure to register timely impedes payroll reporting and compliance monitoring and may jeopardize project funding. Have job site notices concerning public works requirements posted at project jobsites. [T]ake cognizance of violations of public works prevailing wage requirements and promptly report any suspected violations to the Labor Commissioner. (Labor Code section 1726(a).)

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16 Public Works Contractor Registration (PWCR) New system created in 2014; went live on 7/1/2015 Series of questions and certifications; payment of fee Information goes into database that is searchable by public Upgraded in 2015 to handle renewals and penalty calculations and improved search function Next major upgrade (2017) will have different processes for registrations and renewals

17 Public Works Contractor Registration (PWCR) [continued] FUTURE PWCR, ecpr, and PWC-100 will be on same platform, enabling other forms to be populated automatically with PWCR data System may be programmed to search DLSE records automatically for disqualifying conditions (outstanding unpaid wage claims, etc.) PWCR may be able to check external records (CSLB, courts, etc.) for licenses and other relevant information

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19 PWC-100 (Project Registration) Developed in early 2012 for CMU Based on DAS-13 form with additional questions added to assist with CMU monitoring and billing. Platform built and maintained through outside vendor. Obtains contractor data from CSLB records, but requires DIR-supplied NoL (No License) number for contractors not licensed by CSLB. Upgraded in 2015 CMU-related questions removed; Proposition 39 question added; All projects identified by DIR Project Number. Future (2018) -- Will be rebuilt on internal platform that is integrated with other systems. Will have flexible input based on different procurement models.

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21 electronic Certified Payroll Reporting (ecpr) System All certified payroll reporting to the Labor Commissioner is now done online through DIR s website at: Two ways to upload CPRs.xml file upload for tech-savvy contractors Fill out a form manually online (for contractors who don t already use some kind of payroll software) This is an electronic data-transmission system (not.pdfs) that was implemented in June of 2015.

22 ecpr System (continued) Applied to new projects awarded on or after April 1, 2015 and all projects as of January 1, 2016), but enforcement on hiatus while improvements are being made to the fillable online form. Online form being simplified moving away from A format to reduce confusion over contribution and deduction items Identity management features are being added so that, Users can pull up information from prior reports and not have to manually enter all information each week Awarding bodies, contractors, and others can see unredacted CPRs on own projects as appropriate. (Fully redacted CPRs have been available online since the summer of 2015.)

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24 Some numbers -- Currently over 27,000 registered public works contractors (for fiscal year). Several thousand active users of ecpr system. Over 85,000 projects registered on PWC-100 (since 2012). Several hundred thousand CPRs uploaded since June 2015.

25 Prevailing Wage Determinations Prevailing Wage is the prevailing rate for the craft, classification, or type of work in the locality. (Labor Code 1773) Essential feature of Davis-Bacon and little Davis-Bacon Acts. A minimum wage. Originally an Awarding Body responsibility changed to DIR in 1970 s, but Awarding Body still required to obtain rates from DIR. 3 types of rates: Journeylevel and Residential (published by OPRL), and Apprentice (published by DAS) - - Excel spreadsheets and Word documents, including special notices

26 Prevailing Wage Determinations (continued) FUTURE Consolidate all prevailing wage data and processes into a single environment Create internal processes to track, manage, and update data. Redesign external user website to enable smart searches based on craft, location, and date.

27 DIR s Public Works website Redesign underway watch this space!

28 Public Works Newsline - launched December 2015 Keeps users apprised of the latest public works laws and updates: electronic Certified Payroll Record Application Contractor Registration Application Other IT Developments Notices / Reminders / Fact Sheets

29 Instructions to Subscribe Go to DIR website at Click on Director s Office on top of home page Click Press Room Go to bottom of Press Room page Click Subscribe to a distribution list Enter your address, name Check the Public Works Newsline box Click on the subscribe tab

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31 For more information --