New FEE to Do Business in the State of California

Every contractor, whether you are a general or specialty subcontractor, will now be required to pay an annual $300 fee to the Department of Industrial Relations if you wish to bid on or perform work upon any public work project anywhere within the State of California.  This fee is purportedly to compensate the State for the time spent monitoring your jobs to ensure labor/hours/wage compliance.

The new "registration fee" was part of a trailer bill attached to the budget recently signed by Governor Brown.

The $300 fee, payable by credit card, and registration program will be on the DIR's website starting July 1, 2014.  However, the requirement that only registered contractors and subcontractors are allowed to bid or be listed on bids does not take effect until March 1, 2015.  The requirement that only registered contractors and subcontractors be allowed to perform work takes effect April 1, 2015.

Another fee.  Also, another item for all you general contractors to double check before submitting your bids.  If one of your subcontractors listed in your bid is not properly registered, it will very likely disqualify your bid from the public entity.  Tough way to loose a job to the next lowest bidder.

Questions?  Comment, or send me an email, and let’s discuss. 

Nothing in this blog is intended to create an attorney-client relationship.  This article is intended to provide a general overview of the current status of the law for informational purposes only, and is not intended to constitute, or serve as a substitute for, a professional legal consultation.  Laws change every day; please consult an attorney regarding the current status of the law, and how the law affects your specific circumstances. Thank you.