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Legislative / Regulatory Alerts

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

AGCSD Legislative / Regulatory Alerts

January 22, 2016

Submission of Electronic Certified
Payrolls to DIR Put on Hold!

Glitches in the state's computer system have caused the Department of Industrial Relations' (DIR) electronic certified payroll reporting system (eCPR) to be shut down temporarily.  This comes just 21 days since the January 1 start date for all public works contractors and subcontractors to electronically file certified payrolls on ALL PROJECTS using the eCPR.

As you may remember, SB 854, passed into law in 2014, has two components that allow the DIR to administer and enforce the state's labor compliance program: a $300 annual registration fee, and the eCPR.  Beginning June 4, 2015, contractors and subcontractors that perform public works on projects awarded on or after April 1, 2015 were required to use eCPR.  That requirement was extended to ALL PROJECTS on January 1, 2016.  Projects monitored and enforced by Caltrans, City of Los Angeles, Los Angeles Unified School District, and County of Sacramento are exempted, as are projects covered by qualifying Project Labor Agreements.

Now, after receiving numerous inquiries from contractors and subcontractors about the difficulty using the eCPR system, DIR has temporarily stayed the system pending outreach, education, and upgrades that will allow contractors and subcontractors to more easily submit CPRs into DIR's system.

DIR is currently exploring an alternative reporting format that will facilitate compliance with the eCPR requirements for contractors and subcontractors that are having difficulty.  DIR anticipates that the upgrades should be completed by June 2016.

This notice only applies to the obligation to submit certified payrolls into DIR's eCPR system. Awarding bodies must still ensure that contractors and subcontractors are registered under DIR's contractor registration system and in compliance with all other prevailing wage laws including, but not limited to, Labor Code section 1776 (Reporting of Certified Payroll Records).

This notice also does not affect the ability or obligation of labor compliance personnel, or rights of other interested parties, to request and obtain certified payroll records (hard copies in the absence of electronic records).

AGC will continue to monitor the DIR and its labor compliance program, and will provide further updates as necessary.