Chapter 17: Notification Process

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• 17-1 Notice of Delinquent, Inadequate and Discrepant Payrolls
  • 17-1-1 Delinquent and Inadequate
  • 17-1-2 Discrepant
• 17-2 Final Notice
  • 17-2-1 Delinquent
  • 17-2-2 Inadequate and Discrepant

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17-1 Notice of Delinquent, Inadequate and Discrepant Payrolls

When a delinquent, inadequate, or discrepant certified payroll record violation occurs, send a letter each month to the prime contractor and instruct them to provide the requested information or corrections within 15 calendar days from the date of the letter.

NOTE: For receiver and invoice-based payrolls, the district Labor Compliance office or the contract manager of the service contract, will also need to send Form STD-209, “Invoice Dispute Notification,” to avoid penalties that accrue when payrolls are not processed in a timely manner.

17-1-1 Delinquent and Inadequate

For delinquent and inadequate certified payroll records, the prime contractor is informed of:

• The details on each violation
• The temporary withholding of contract payments

Under California Labor Code 1742, the affected contractor or subcontractor is also informed that they may request an expedited hearing to review the temporary withholding of contract payments.

17-1-2 Discrepant

For discrepant certified payroll records, the prime contractor is informed of:

• The details of the discrepancy
• An estimated withholding or release amount in the event the contractor fails to provide the information to correct the discrepancy

The listed discrepancies are not subject to the expedited hearing process.

17-2 Final Notice

The Final Notice of Delinquent, Inadequate or Discrepant Payroll Records is a letter sent to the prime contractor providing final notice of delinquent or inadequate payroll records. This notice is typically sent when the contractor fails to respond or address the violations outlined in the initial monthly notice in a timely fashion.

This notice includes:

• An estimated amount of penalties and wages
• A referral to the Division of Construction Labor Compliance unit to process a wage violation case

17-2-1 Delinquent

For delinquent certified payroll records, in accordance with California Labor Code Section 1776(h), the prime contractor is notified that failure to provide payrolls to Caltrans within 10 days from receipt of the request will be subject to a penalty of $100 for each calendar day, or portion thereof, for each worker, until the required payrolls have been received. Similarly, subcontractors are notified by letter.

17-2-2 Inadequate and Discrepant

For inadequate and discrepant certified payroll records, the prime contractor is instructed to provide:

• A supplemental certified payroll
• A signed statement of compliance
• A copy of the front and back of the canceled checks or other source records that reflect resolution of identified violations

Failure to provide requested documents within 10 days from the receipt of the inadequate final notice or discrepant final notice results in a wage violation case and the Division of Construction Labor Compliance unit submits a formal forfeiture request to the California Department of Industrial Relations.