Welcome to our newsletter! You will find important updates and industry related news, along with upcoming speaking events and educational opportunities. Thank you for your interest in CCMI.

Sincerely,




Deborah Wilder
CCMI President 

 
WHATS NEW?
 
The US Department of Labor is presenting a 3-day workshop on Federal prevailing wage compliance  including Davis Bacon Act and the McNamara Service Contract Act. The next workshop is scheduled for August 15-17 in Pittsburg, PA.  For more information and to register, go to:  https://www.dol.gov/whd/govcontracts/SeminarsInfo.htm 
  
T he workshop is FREE, but space is limited so registration is required.   This is one of the best prevailing wage trainings provided.  Contractors  who perform Federally funded construction work should definitely attend.  USDOL generally scheduled 3-6 of these each year in various locations.  As far as we know, this is the last such workshop for 2017.
 
Overtime Penalties for Davis-Bacon Act projects increased from $10 per day per worker to $25 per day per worker and will be indexed and automatically increased each year. President Obama, under Executive Order in 2017 directed that certain penalties within the US DOL be adjusted for inflation and then indexed and adjusted automatically moving forward.

From the Department of Labor Wage and Hour Division -  reinstatement of Wage and Hour opinion letters: "The U.S. Department of Labor will reinstate the issuance of opinion letters, U.S. Secretary of Labor Alexander Acosta announced today. The action allows the department's Wage and Hour Division to use opinion letters as one of its methods for providing guidance to covered employers and employees." Click here for more info


 
California- The California legislature just passed an increase to the contractor public works registration fee to $400  for the 2018-2019 fiscal year. The law would also exempt contractors from having to register and pay the fee if they were performing work on a maintenance contract under $15,000 or under $25,000 for construction, demolition and repair. This is especially helpful to small contractors who routinely engage in very small maintenance and repair contracts for public agencies. Agencies are also excused from filing a PWC-100 for these smaller projects. Also new fines and penalties are imposed. Be aware that prevailing wages is still required on any project over $1,000. This bill was signed by the Governor on June 27, 2017 and went into effect immediately. For the full detail of new laws click here.

Senate Bill 96, the budget trailer bill, was signed by Governor Jerry Brown on June 27, 2017 and went into effect immediately.  The bill contained a hodgepodge of various laws and amendments from wage increases for judges to new procedures for recall elections and several changes to the prevailing wage requirements. Listed below is a summary of those changes:
 
Impacting Contractors and those who perform work requiring the payment of prevailing wages:
  • Public Contractor Registration fee increased to $400 a year.
  • Starting in 2019, contractors can renew for up to three years at a time.
  • Failure to renew registration, based on a good faith mistake, allows for a penalty of $400, plus $400 registration fee if done within 90 days (by September 28).
  • Public Contractor Registration is NOT required when the prime contract with the Agency does not exceed $25,000 for construction, alteration, demolition, installation or repair, or $15,000 for maintenance work.  This applies to the prime contract amount between the contractor and the Agency and not a subcontract amount.
  • Contractors who do not have to be registered because of $25,000/$15,000 exemption above do NOT have to submit certified payroll through the DIR's eCPR system.
  • Contractors not registered cannot work on a public works project over the $25,000/$15,000 exemption.
  • Penalty for registering after bidding on a public works contract and/or working on a public works project (without being registered) is $400 registration fee, plus $2,000 registration penalty, plus $100 a day for each day worked on a public works project without being registered up to a maximum of $8,000.
  • Prime contractors who have a subcontractor which is required to be registered and is not registered are also subject to a separate fine of $100 a day for each day worked by that unregistered subcontractor up to a maximum of $10,000.
  • Prevailing wages still apply to all public works (including maintenance) over $1,000. Contractors are required to keep sufficient certified payroll and related records for each project.
Impacting Public Agencies or grant recipients required to enforce prevailing wages:
  • No PWC-100 required to be filed when the project/contract does not exceed $25,000 for construction, alteration, demolition, installation or repair; or $15,000 for maintenance work.  This applies to the prime contract amount between the contractor and the Agency and not a subcontract amount.
  • PWC-100 form is required on all other public works projects in excess of the $25,000/$15,000 limit set forth above. PWC-100 forms are to be completed within 30 days of the contract award, but not later than the first day work begins on the project.
  • New contract clauses are required. See Labor Code Section 1771.4 and 1860.
  • Penalties of $100 per day worked are assessed against the Public Agency if a PWC-100 is not properly filed and/or an unregistered contractor is allowed to work on the project.
  • Two or more willful violations within 12 months (failure to file a PWC-100 or allowing an unregistered contractor to work on a project) makes the Agency ineligible for State funding for construction projects for 1 year.
  • Prevailing wages still apply to all public works projects (including maintenance) over $1,000. Contractors are required to keep sufficient certified payroll and related records for each project.
  • Agencies are still required to be cognizant of prevailing wage compliance on all projects and either report violations to the DIR or investigate and require compliance, (Labor Code section 1726).

UPCOMING EVENTS
Training and Seminars 
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Prevailing Wage Workshop and
Training  (Livermore, CA)
Tuesday, August 22
Associated Builders and Contractors of Northern California. 

Prevailing Wage Workshop and Training (Redding, CA) 
October 25, 2017
Shasta Builders' Exchange
Contact Shasta Builders Exchange for registration.


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FROM THE INBOX....
You asked, we answered!

QUESTION:  How do I pay the proper training contribution in California when there is a training contribution listed but no apprenticeship program?
 
ANSWER:  Training contributions NEVER ever go to the employee with only one exception.  Typically training contributions are paid to either a State approved apprenticeship committee OR to the California Apprenticeship Council (CAC). These payments are to be made monthly and sent not later than the 15th of the month. So, training contributions for June would be due to be mailed out not later than  July 15 .  
 
In some VERY LIMITED circumstances, there are training contributions listed, but no approved training committee. In that instance, the training contribution is paid to the worker.  Look for the # sign next to the craft name, if there is NO # and there is a training contribution listed, then the training contribution can be paid to the worker on the paycheck. If there is a # sign next to the craft classification, then training contributions CANNOT go to the worker and must go to an approved apprenticeship committee or the CAC.
 
For Example: Teamsters have a training contribution listed. In Southern California the Teamsters have an approved apprenticeship committee. Those training contributions are not paid to the worker but to the appropriate fund.  In Northern California, the Teamsters do NOT have an approved apprenticeship committee. So, in Northern California, the training contribution is paid to the worker.


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CCMI is not just another firm....

We are not merely a "consulting" firm, but rather a team of individuals who understand the needs of the Public Entity and contractors to "get the project done." Our staff includes retired contractors, auditors, attorneys and industry veterans.