Certified Payroll Records

On June 20, 2014, the California legislature adopted SB 854, a “budget bill” that was heavily negotiated and tied to the approval of the state budget. Included among a variety of unrelated provisions in the lengthy bill were a number of additions and changes to the California Labor Code which will revamp the monitoring of public works projects throughout California through the Department of Industrial Relations (“DIR”).

SB 854 creates a new public works monitoring scheme for the DIR. While the DIR has been charged with establishing and enforcing prevailing wage requirements for number of years, the new scheme will place more responsibility on the DIR. This alert will summarize the new requirements for both public agencies and contractors.
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Statutory requirements regarding certified payroll records on public works projects were recently amended to allow contractors to keep the records in an electronic format. Previously, Labor Code section 1776 required that contractors submit certified payroll records on forms provided by the Division of Labor Standards Enforcement. Pursuant to SB 759, section 1776 was amended to allow certified