Due to AB-3018, the percentage of skilled journeypersons that must be used on government funded projects increased several times in recent years. Currently, the required percentage is 60% for most trades, with some occupations remaining at the 30% rate.
As outlined by current laws, a “skilled journeyperson ” is defined as a worker who either:
(1) Graduated from an apprenticeship program for the applicable occupation that was approved by the chief or located outside California and approved for federal purposes pursuant to the apprenticeship regulations adopted by the federal Secretary of Labor.
(2) Has at least as many hours of on-the-job experience in the applicable occupation as would be required to graduate from an apprenticeship program for the applicable occupation that is approved by the chief.
Contractors and subcontractors found to be in violation may face penalties up to $5,000 per month for their first violation. If a second violation occurs within a three-year period, the penalty can be up to $10,000 per month. Additionally, they may face debarment from public projects for one to three years.
AB-3018 also included a monthly reporting requirement to help ensure compliance. Failing to provide this monthly report can lead to having payments withheld until a complete report has been submitted. The threat of non-payment, and the risk of hefty penalties, makes it especially important to stay ahead of AB-3018.
You can read AB-3018 in full here.
AB-3018 Reporting made easy
Reporting requirements are nothing new to contractors and subcontractors, especially those that work on public works projects. Keeping in compliance, however, requires more than submitting a report. You don’t want to wait until the end of the month when reports are due to find out that you’ve dropped below the required percentage of skilled workers on a project.
This is where traditional reports fall short, they only show if you’re in compliance but they don’t help you stay compliant. Our software solves this problem and provides users a proactive solution to traditional reporting. Once you set your employees up in our system, including their skill level, our system is able to track the percentage of skilled and trained workers you have on each job.
With just a couple clicks, you can create a report to see if you’re complying with the percentage requirements of AB-3018. You can also receive nightly emails showing AB-3018 stats. This allows you to make adjustments as needed, eliminating surprises at the end of the month.
By automating your ability to track your skilled and trained workforce, you remove a potentially time-consuming task. You will also mitigate your exposure to risk, potentially saving you from penalties.
Our system also auto generates DAS 140 and DAS 142 forms, making it easier to comply with all California apprenticeship regulations. Learn more about all of the simple, one-click reports possible with eBacon, including union reporting and federal and state reports.
The material presented here is educational in nature and is not intended to be, nor should be relied upon, as legal or financial advice. Please consult with an attorney or financial professional for advice.