You Must Keep Accurate DIR Records

If you’re a public works contractor or subcontractor in California, there are some key obligations you need to know about under Labor Code § 1776. First off, you’re required to keep accurate payroll records that include each worker’s details, hours worked, wages paid, and proper classification according to prevailing wage rules. These records must be certified under penalty of perjury and can include a variety of documents like work schedules, job assignments, and fund disbursement forms. You also need to provide itemized statements to employees under Labor Code § 226, and failing to do so can trigger civil or criminal penalties—these are separate from penalties under the public works chapter.

On top of that, you have to be ready to provide certified payroll records (CPRs) when the Labor Commissioner requests them, usually within ten days. This can be done using either the Labor Commissioner’s forms or equivalent certified copies. Recently, electronic submissions (eCPRs) have become mandatory, too, typically monthly or more often if your contract requires it. Not submitting these eCPRs can cost $100 per day, up to $5,000 per project. Importantly, electronic submissions don’t replace the requirement to provide requested written records—both are needed.

There are also specific rules about how these records are handled. For instance, personal information like social security numbers needs careful treatment, and records must be kept long enough to address any wage disputes, even though prevailing wage laws don’t spell out an exact retention period. While you aren’t reimbursed for the cost of producing CPRs unless it’s a public request, failure to comply can result in penalties. In short, keeping thorough, accurate, and properly certified payroll records—both on paper and electronically—is not just a best practice; it’s the law, and ignoring it can get expensive.