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Deborah Wilder
CCMI President 

When the California Department of Industrial Relations asks for payroll records under Labor Code 1776, they typically require the documents returned within 10 days.
California Labor Code Section 1776 states that a contractor has 10 days (meaning calendar days) to get the information to the DIR (or awarding agency). Sometimes this places an enormous burden on a company if payroll records are requested for a large project. Here are some recommendations in dealing with the request:
  • Clarify the scope of the request. If it is not clear from the request specifically which project or time frame the request covers, send an email back to the investigating individual and ask for clarification.
  • If you are not able to provide all the documentation requested within 10 calendar days, ask for an extension. The DIR will routinely provide an extension from 10 calendar days to 10 working days. If you need some more time, ask for a specific date that the documents will be in the mail to them or delivered. Typically, an extension of more than 2 weeks is NOT granted.
  • Confirm the extension in writing. An email is fine, but either get a confirmation from the DIR/Agency or send a confirming email to them documenting the extension given.
  • Confirm the documents you are providing and confirm this is all that is requested. Typically, a request for payrolls means the certified payrolls, fringe benefit statements and proof of training contribution. The DIR or Awarding agency can also ask for time cards, copies of benefit statements, cancelled checks or wage statements. The same 10-day turnaround applies to these documents as well.
  • If you cannot get all the documents to the DIR/Agency within the time frame requested, explain why, provide a short time period when those documents will be available and the be sure to follow up with these documents. Remember the DIR can continue to assess penalties against your company for each day you are late in providing the documentation. So, if you timely provide the certified payrolls, but take 20 days to provide the timecards, the DIR/Agency can assess a penalty of $100 a day x the number of employees who worked on the project for each day you are late in providing ALL the documents.
  • Even though you already provided certified payrolls to the DIR electronically, the DIR can ask for hard copy certified payrolls, fringe benefit statements, proof of training contributions and other payroll documentation.

You asked, we answered!

Sometimes I get a request for certified payroll from someone who is not the awarding agency or the DIR.  
Do I have to respond?
An Awarding Agency and the DIR always has the right to request copies of your payroll documents. This also applies to a labor compliance company which has been hired by the agency. These entities have the right to impose Labor Code Section 1776 penalties for the late receipt of these documents. The documents submitted to these entities are never redacted.
Anyone else who wants copies of your certified payrolls must go through the DIR or the Awarding Agency. A request for payroll records sent directly to the prime contractor from a third party (not the DIR, the Awarding Agency or agent of awarding body) requires no response. If you chose to respond, understand that you are allowed to ask the 3rd party for certain copy charges: $10 handling fee, $1 for the first page and $.25 for each page thereafter. And, depending on who is doing the asking, some of the information must be redacted. A member of the public asking for the CPRs has the employee's name, address and social security number redacted. A joint labor management committee only has the social security number redacted.
Sometimes, an Awarding Agency will receive a request from a third party for CPRs and will send a copy of the letter to you. Since the request comes from the Awarding Agency, you will need to respond. If the Agency asks you to respond directly to the third party, be sure to request payment for copies and you can wait until you receive that payment before sending the CPRs along. And, be sure to properly redact the appropriate information before sending the documents to the 3rd party. When in doubt, contact competent legal counsel to assist you.

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.