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Legislative / Regulatory Alerts

Contact: Brad Barnum / Executive Vice President - 858-731-8158

AGCSD Legislative / Regulatory Alerts

February 4, 2019

AGC Provides Guidance and Compliance Documents for Contractors as Enforcement of Skilled and Trained Workforce Requirements Gets Underway

Brad Barnum, Executive Vice President

It's crunch time for public works contractors and certain public agencies as it relates to "skilled and trained workforce" requirements. Since January 1, the California Labor Commissioner can enforce the requirement for contractors and subcontractors on certain projects to have a percentage of their journeymen be graduates of a state or federal-approved apprenticeship program. Click here for the specific delivery methods, affected agencies, percentage requirements, and apprenticeable trades.

It should be noted that although these skilled and trained workforce requirements are legislatively mandated for various delivery methods or public owners, any public agency can choose to implement these requirements on any project.

To better understand the new requirements and implications for non-compliance, AGC held a December workshop with DIR's Division of Labor Standards Enforcement, and a January workshop with Chad Wishchuk of Finch, Thornton & Baird, LLP. The second workshop focused on the actual definition of a "skilled and trained" workforce, contractual requirements, best practices for compliance, and how to protect against mandatory payment withholdings, monetary penalties, or debarment from public works. Click here for the presentation.

Of particular importance to contractors and public agencies are the reporting documents, which provide information on the entire workforce on a specific project ("skilled"), as well as the percentage of apprenticeship graduates ("trained"). While the project is being performed, these documents must be completed monthly by the prime contractor and all sub-tier contractors, and provided to the awarding body.

Here are the specific reporting documents that we believe should help demonstrate that the prime contractor and its contractors have a "skilled and trained" workforce:
Subcontractor Affidavit of Compliance
Monthly Report (includes workforce and apprenticeship graduate documentation)

The importance of completing these reporting documents is clear, because without them (or a contractor plan to achieve compliance), the awarding bodies will be obligated to withhold further payments, or withhold 150% of the value of the monthly billing. If the Monthly Report does not demonstrate compliance, the awarding body will forward it to the Labor Commissioner's Office, where significant financial penalties or debarment await non-compliant contractors.

AGC is a strong advocate for a skilled and trained workforce, and we hope contractors utilize this guidance to achieve compliance. A consistent approach will allow our local public agencies to effectively monitor and enforce.

If you have any questions about the skilled and trained workforce requirements, please contact:
Brad Barnum, AGC Executive Vice President, (858) 731-8158
Pete Saucedo, AGC Apprenticeship Executive Director, (858) 558-0739
Chad T. Wishchuk, ESQ. of Finch, Thornton & Baird, LLP, (858) 737-3100