California Labor Commissioner Pauses Enforcement of eCPR Submission Requirements – Impacts for Small Businesses and Public Works Compliance

The California Department of Industrial Relations (DIR) has announced a temporary pause on the enforcement of electronic certified payroll records (eCPRs) submission requirements through at least December 31, 2024. This pause addresses challenges contractors and subcontractors have faced with the new eCPR system launched in June, and the DIR is actively working to improve the system based on public feedback.

https://www.dir.ca.gov/Public-Works/PublicWorks.html

While eCPR submission enforcement is paused, contractors must still adhere to other public works requirements, including maintaining certified payroll records under Labor Code section 1776, paying prevailing wages, and meeting apprenticeship obligations for projects over $30,000.

How This Impacts Small Businesses

Small businesses in public works projects face a unique burden with electronic reporting systems. Although all contractors are required to set up accounts in the new eCPR system, the pause in enforcement gives smaller firms time to adjust without facing penalties or project disruptions. Unlike larger firms, small businesses often operate with leaner resources and fewer compliance teams, making new regulatory systems a larger relative cost to their operations.

The DIR's system improvements aim to ease compliance for all contractors, but the adjustment costs are a smaller percentage of overhead for large companies, leaving small firms at a competitive disadvantage. As the new eCPR system is refined, small businesses will benefit from taking the time now to familiarize themselves with the tools and support available through DIR’s Public Works Support Center.

The DIR’s commitment to modernization is essential, but feedback from the industry remains vital. Small businesses should leverage this temporary enforcement pause to ensure their voices are heard, promoting a fair and accessible compliance landscape across California’s public works sector.

For more information, visit the DIR’s Public Works Support Center or sign up for updates on the eCPR system and other public works requirements.