California’s public works projects can be lucrative for construction companies. In order to obtain or keep those contracts coming in, contractors will need to make sure they are paying everyone who works on a project the prevailing wage. Technological advances can help them get their calculations right in order to remain in compliance. However, there are some issues to consider before committing to an electronic certified payroll program.
Many jurisdictions have different requirements when it comes to pay classifications. Whatever system a contractor uses, it needs to account for those differences. For example, California’s laws are known to be some of the strictest in the country, and they can change often. The software chosen should automatically update based on those changes. If it does not, the contractor is the one who pays the price — literally.
Speaking of fines and other monetary repercussions of mistakes, contractors may want to remain actively involved in the payroll process and not rely solely on the software. In addition to potential mathematical errors, other issues such as not using the correct wage determination or having all of the appropriate fields to fill in could prove costly. Of course, these are not the only problems that could arise, so it is vital that the contractor remain involved and on top of what goes on when calculating prevailing wages for all ongoing public works projects.
Unfortunately, even the most diligent contractors could end up with mistakes when it comes to prevailing wage calculations. When that happens, it could lead to a variety of legal entanglements that put current and future public works projects in jeopardy. Working with an experienced construction law attorney could help in finding the best resolution possible to those issues.
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