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Safe Harbor for Skilled and Trained Workforce in California
In California, there are 15 different laws (statutes) which require Skilled and Trained Workforce (STW) requirements. This includes a requirement that a specific percentage (either 30% or 60%) of your journeyman on a public works projects are graduates of a California approved apprenticeship program or a U.S. DOL approved program outside the State. Please note that prime contractors are also subject to this penalty imposed upon their subcontractors unless they engage in four specific steps (commonly known as Safe Harbor protection). The requirements for Safe Harbor protection are:
- Including California Public Contracting Code Sections 2600-2603 in the subcontract. (You may not incorporate this by reference);
- Periodically monitor your subcontractors’ STW compliance on the project;
- Take appropriate action when any subcontractor is not meeting the STW requirement each month (this can include holding funds if the Public Agency holds funds and/or requesting Monthly Substantial Compliance Plans); AND
- Obtain an End of Project Affidavit
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If a prime contractor complies with all four requirements, then the prime contractor will not be responsible for any fines/penalties issued by the DIR on the noncompliant contractor.
