On March 17, 2017, the Department of Industrial Relations (DIR) submitted Budget Trailer Bill 502. Budget Trailer Bill 502 would provide changes to the existing contractor registration requirements, as well as changes to the requirement for agencies to provide the DIR with notice of pending public works projects, as initially required by SB 854. SB 854 established the requirement that all public works contractors register with the DIR, and also established a prevailing wage monitoring and enforcement mechanisms. See our previous article on the changes here.
Budget Trailer bill 502 proposes to increase the registration dollar thresholds that were set in SB 854. Contractor registration would be required for new construction that is $25,000, previously $1,000, and $15,000 for maintenance projects. The Budget Trailer bill would also create new civil penalties that would be imposed by the State Labor Commissioner. Any contractors or subcontractors that do not register with the DIR will be fined $100 per day, with a limit of $8,000. Additional fines of $100 per day, up to $10,000, would apply to any contractors who employ unregistered subcontractors. This could also result in the loss of registration for the current fiscal year and disqualification from registering in the following year. Moreover, a first time violation would not result in the loss of registration if it was unintentional.