I want to . . .
1. If an awarding body has signed up for the eCPR system, what happens now?
The Department will continue to offer the electronic certified payroll reporting (eCPR) service to awarding bodies for their own use if they have already enrolled in the service and are relying on its operation to monitor contractors. Please note, however, that continued use of this service is not a substitute for the any legal requirement to use an approved labor compliance program (LCP). Awarding bodies that no longer want to participate in the eCPR should notify their contractors to discontinue the use of the service. The Department will continue to have staff available to assist awarding bodies and contractors who may encounter difficulties with the service.
2. If an awarding body has paid fees to the Department to monitor a project, will the awarding body get a refund?
The Department will be returning any monitoring fees that have already been paid. Fees will be returned to the affected awarding bodies after the suspension of the SBX2-9 regulations become effective.
3. If an awarding body received funds for a project from a bond that requires a labor compliance program, what does the awarding body do now?
If an awarding body started a project after August 1, 2010 with the expectation that the project would be subject to CMU oversight, that awarding body will now have to bring itself into compliance with any previous statutory provisions requiring the use of an approved LCP. This means that the awarding body must either use its own previously approved LCP or obtain an approved third party LCP to monitor the project. Please see the Department’s website for lists of approved labor compliance programs at http://www.dir.ca.gov/lcp/lcplist.asp?lcptype=apprcur.
4. What should the awarding body do if the awarding body cannot find a labor compliance program to monitor its project?
There are over 100 approved labor compliance programs listed on the Department’s website, including approximately 40 third party programs that are approved to provide LCP services for awarding bodies on a contract basis. An awarding body should be able to contract with one of them to perform the required services.
5. If a third party labor compliance program costs are higher than the CMU fees, how will an awarding body get the additional money to pay the increased costs when it did not anticipate the higher costs?
Various statutes and regulations require the awarding body to pay any fees necessary to carry out the requirements of compliance monitoring associated with the acceptance of bond funds. The Department, however, has no jurisdiction over the award of the bond funds and/or enforcement of the requirements which must be met by the awarding bodies to receive the bond funds. Any questions about how to pay these fees must necessarily be addressed by the agencies awarding the bond funds.
6. Does an awarding agency need to amend its contract with the construction contractor to reflect that a third party labor compliance program will conduct monitoring services instead of the CMU?
We cannot provide you with specific advice on how to draft or modify your contract documents, but we can provide the following general guidance. First, the notice requirements in section 16452 of the regulations will no longer apply, which means that (1) bid and contract documents should no longer specify that projects are subject to CMU monitoring or regular submission of certified payroll records to the Labor Commissioner [§16452(c)], and (2) CMU job site notices should not be posted at any project sites [§16452(d)]. Second, if the project is reverting back to an LCP requirement (see Question 2 above), it will need to comply with the notice requirements in section 16429 of the LCP regulations. Awarding bodies should consult with their own legal counsel on what specific contract revisions or notices are needed to comply with these requirements.
7. If the regulations are merely suspended, does that mean that the CMU will be reinstituted at some future date?
The Department is pursuing avenues to resolve the legal issues raised. We anticipate that the issues will be resolved and that the CMU will be reinstated at a future date.
8. If complaints have been filed on projects that were subject to the CMU, where should the complaints be directed now?
Complaints alleging violations of the prevailing wage laws should be directed to the awarding body or its labor compliance program. Complaints on projects that are not being monitored by an LCP should be filed with the Labor Commissioner’s Office.
9. If an awarding body was not required to have monitoring on its projects prior to the establishment of the CMU, is the awarding body required to have labor compliance monitoring now?
If the project was not subject to the CMU oversight then it is likely that the project does not require labor compliance monitoring by an approved LCP. The awarding body should consult with its legal counsel for a determination. The Department maintains a list of statutes that require use of an approved LCP for specified types of projects on its website at http://www.dir.ca.gov/lcp/StatutesRequiringLCPs.pdf.
10. How will I know if the CMU is restarted?
The Department will notify all interested parties through this website, as well as its mailing lists. If you are not currently on the mailing list to receive information on the CMU, please email us at cmu@dir.ca.gov and we will include your address.