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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.

Deborah Wilder
CCMI President 

California Skilled and Trained Workforce

California Skilled and Trained Workforce still creates havoc for many employers. While there are some amendments in the works by the California legislature, these basic requirements still apply: 

Two Parts to STW:

Part 1: All workers employed on the project must be an apprentice, a journeyman who is a graduate of an apprenticeship program (DAS approved program within CA or DOL approved program out of State) OR a journeyman with equivalent experience

Impact: no new hires or those with limited experience in construction on the project.
Part 2: Of the journeyman employed on the project, 60% MUST be graduates of an apprenticeship program (DAS approved program within CA or DOL approved program out of State).

30% for the following trades: Acoustical installer, bricklayer, carpenter, cement mason, drywall installer or lather, marble mason, finisher, or setter, modular furniture or systems installer, operating engineer, pile driver, plasterer, roofer or waterproofer, stone mason, surveyor, teamster, terrazzo worker or finisher, and tile layer, setter, or finisher. 60% for all other trades.

Exceptions to STW:

  • If a subcontractor is performing less than ½ of 1% of the total contract price
  • Workers performed a total of less than 10 hours of work per month
  • Apprenticeship Program created after 2014 (some limitations)

Challenges: Both union and open shop contracts struggle to meet these numbers. Most apprenticeship programs are operated by a union. So open shop contractors have less opportunity to enroll their own workers in these programs. When companies become union signatory, their respective workforce is typically grandfathered in as journeymen so these journeymen do not have graduation cards from the apprenticeship program.

The Awarding Agency has the obligation to report non-compliant contractors to the DIR. The DIR can then take up to 18 months after the completion of the project to complete its investigation and issue penalties. While penalties currently max out a $5,000 per month, the DIR is consistently reducing those penalties (but not waiving them) if the contractor can show it has made a genuine effort to recruit graduates of apprenticeship programs and has been unsuccessful.

Contractor Jailed for Stealing Wages from Workers in Pennsylvania

Scott C. Good plead guilty in 2021 to “wage theft” after a Statewide Grand Jury recommended charges against Good for stealing employees’ wages for several years. A Clearfield County Judge ordered a prison term of four to 24 months. Good subsequently appealed the sentence and conviction. That appeal was recently sustained and Good will now begin his prison term. This is the first time in Pennsylvania that an individual was jailed for wage theft.

Every year CCMI comes across a handful of contractors who take unlawful deductions from worker’s checks or have the worker sign their paycheck back to the employer and receive cash for an amount less than the value of the paycheck. If this is on a federally funded project, this is a felony under the Copeland Antikickback Act. Various states have other laws addressing wage theft.

Upcoming Training:

June 21 All day in person training 9:00 a.m. – 3 p.m.- What Every Contractor Should Know about Prevailing Wages, ABC San Diego www.abcsd.org

June 25-27th CSDA General Manager’s Meeting- Lake Tahoe 
What is New in Prevailing Wages www.csda.net

August 14-17 American Contract Compliance Association. Deborah is speaking on 8/17 on Project Labor Agreements

August 28-31 CSDA Annual Meeting www.csda.net

Remember if you need more training, Deborah Wilder is the presenter on the LCPtracker Academy Prevailing wage workshops. Go to www.LCPtracker.com and select the education tab.

Want to schedule your own prevailing wage workshop?
We will customize a workshop or webinar for you and your Agency/Company. Contact us at: info@ccmilcp.com 
What Every Contractor Should Know About Prevailing Wages, 3rd Edition.
Available through www.ccmilcp.com $45 inclusive of tax and shipping.
FROM THE INBOX....You asked, we answered!
As a Public Agency, I am confused over what my Agency’s obligation is and how the contractor registration process works in California.

ALL contractors and subcontractors are required to be registered as public works contractors at the time of bid.

A Public Agency may not award a contract or allow a contractor to work on the project is they are not registered.
A public entity has two options when bids are opened and it is discovered that a listed subcontractor is not registered. (the Agency has the obligation to verify that the prime contractor and all listed subs are registered).

If one is not registered, then the Public Agency has two options:
First, the Agency can reject the bid as being non responsive.  
Otherwise, if the City wants to award the contract to this specific contractor, the public agency can opt to provide the prime contractor with 24 hours (1 business day) to have the subcontractor correct the registration. If the subcontractor now goes to the website to register, one of the questions asked is whether or not the contractor has already bid on a public works contract. If that is answered truthfully, the contractor will be fined $2,000 over and above the $400 registration fee. Once that $2,400 has been paid, the Agency can award the contract.

Feel free to send your questions to info@ccmilcp.com
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.