LEGAL ISSUES
2019 Revisions to ‘Skilled & Trained Workforce’ Laws Increase Duties and Risks to Contractors
By Donald “Dino” Velez, Smith, Currie & Hancock, LLP
performing certain public works projects to use a skilled and trained workforce. What qualifies as a skilled and
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trained workforce, and the rules surrounding them and failure to comply have been evolving. AB 3018, effective January 1, 2019, expands and adds risk to contractors’ skilled and trained workforce duties. Te new law provides, in summary:
Te skilled workforce requirement remains capped at 30 percent for: acoustical installer, brick- layer, carpenter, cement mason, drywall installer or lather, marble mason, finisher, or setter, modular furniture or systems installer, operating engineer, pile driver, plasterer, roofer or water-proofer, stone mason, surveyor, teamster, terrazzo worker or finisher, and tile layer, setter, or finisher.
Public agencies or other awarding bodies must forward copies of monthly reports to the Labor Commissioner for issuance of a civil wage and penalty assessment and a copy of the contractor’s plan, if any, to achieve substantial compliance with skilled and trained workforce requirements. Te public agency or awarding body must also submit its response to the contractor’s plan to achieve substantial compliance, if the monthly report does not demon- strate compliance with skilled and trained workforce requirements.
A public agency or awarding body may withhold up to and no more than 150 percent of the value of the monthly billing for a subcon- tractor that failed to submit the required information timely or
www.AGC-CA.org
n the last several years, the California Legislature has enacted laws that require contractors
did not demonstrate compliance. It also allows the contractor, bidder, or other entity to withhold the same amount from the subcontractor.
A contractor or subcontractor may be fined, payable to the state, up to $5,000 per month of work performed in violation of the skilled and trained workforce requirements if the Labor Commissioner or his or her designee determines that the contractor or subcontractor failed to use a compliant skilled and trained workforce. A second or subsequent violation within a 3-year period may subject the contractor or subcontractor to a civil penalty up to $10,000 per month of work performed in violation of the skilled and trained
THIS WAS GRANITE CONSTRUCTION’S
CHALLENGE SOLUTION
THIS WAS OUR
The MSC Project will help provide state-of-the-art services to LAX passengers. Granite Construction needed to move around 13,000 feet of utilities and complete 350,000 cubic yards of mass grading, structural excavation and backfill.
Stephan Urban, Superintendent for the MSC wet utility portion, notes Granite rented shoring equipment from “go to” vendor, Trench Shoring Company, including: trench plates, trench shields, hydraulic trench shores and modular aluminum panel systems, plus various SBH Slide Rail Systems.
For over 40 years, Granite has relied on us to provide extensive inventory, and around-the-clock support.
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10 Locations 800-423-4411
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© 2018 Trench Shoring Company Associated General Contractors of California 15
workforce requirements.
Before making final payment on a project to a subcontractor, the contractor must obtain a decla- ration signed under penalty of perjury from that subcontractor that they met the skilled and trained workforce requirements.
Any contractor or subcontractor who violates the requirements with the intent to defraud becomes ineligible to bid on, be awarded, or perform work on a contract for a public works project. Te
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Safely complete mass grading, structural excavation and backfill involving active utilities at LAX Midfield Satellite Concourse (MSC) North Project.
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