LA Metro certified payroll requirements for subcontractors

What Metro asks of a sub

Metro's 2024 Labor Compliance Manual, linked from its labor page, sets the weekly rule. The contractor and every tier subcontractor submit a certified copy of the payroll each week through Metro's online monitoring system. The manual's Appendix E schedule sets the clock: within 7 days of the end of the payroll period on federally funded contracts, and within 10 days on state-funded ones.

• Weekly certified payroll. It carries an electronic signature from the contractor's designated payroll agent, per section 4.2 of the manual.
• A payroll officer form before work starts. Upload a completed Certificate Appointing Payroll Officer form naming the person who certifies.
• A Statement of Non-Performance for any week with no work. Appendix E says to file it in place of a payroll. See no work performed weeks.
• Your prime in the middle. The manual makes the prime responsible for submitting its subs' certified payrolls. Ask whether you upload your own or send them to the prime.

When prevailing wage applies on a Metro job

Metro's table says $1,000 and above, while the statute and Metro's manual say more than $1,000. Where state and federal rules both apply, the manual says to pay the higher of the DIR and U.S. Department of Labor rates.

Which system do you upload to

Metro's labor page and the body of the manual call it Metro's online monitoring system and never name the product. The header of the Appendix E schedule says to upload all compliance documents to LCP Tracker. The appendix is marked for reference, so confirm with Metro or your prime before you set up an account. Metro's labor compliance contact is DEODLaborCompliance@metro.net. See also LCPtracker vs DIR eCPR.

Metro and DIR side by side

Do you still file the DIR eCPR on a Metro job

Usually yes. DIR's eCPR FAQ says submitting certified payroll to other agencies does not put you in compliance with the state unless you submit eCPRs directly to DIR. Metro's manual says the same in its own words: contractors registered with DIR must also submit certified payroll through the eCPR system.

Metro is not on DIR's exemption list. That list names four legacy labor compliance programs, Caltrans, the City of Los Angeles, LAUSD, and the County of Sacramento, plus projects under qualifying project labor agreements. Metro's legal name is the Los Angeles County Metropolitan Transportation Authority, per its manual, so it is not the City of Los Angeles. For City jobs, see City of Los Angeles and OCPS.

DIR's certified payroll FAQ also lists a small project exemption. It applies to public works projects that do not exceed $25,000 for new construction, alteration, installation, demolition or repair, or $15,000 for maintenance. A small Metro job may fall under it, so check the contract value before you assume you owe the eCPR.

The project labor agreement question

The manual adds that contractors subject to Metro's Project Labor Agreement requirements do not have to submit eCPR but must be registered with DIR. Metro's PLA and Construction Careers Policy page says the agreement applies to certain local and federally funded construction projects with a construction value above $2.5 million. DIR's eCPR FAQ, though, exempts only qualifying agreements, at the Labor Commissioner's discretion. Under section 1771.4(b)(2), the test is a collective bargaining agreement that binds all contractors on the project and includes a way to resolve wage payment disputes. Neither Metro's page nor DIR's says whether Metro's agreements qualify.

Ask your prime in writing whether this contract is under Metro's PLA and whether the Labor Commissioner has exempted it from direct eCPR filing. Until you have a written yes, file. Our guide to who is exempt from certified payroll covers the rest of DIR's list, and how to find a DIR Project ID covers the lookup.

What Metro's pages do not say

• Metro's labor page does not say whether a DIR eCPR is also due. Section 1.2 of the manual does.
• No page says which Metro projects the Labor Commissioner has exempted under a project labor agreement.
• The manual is dated February 20, 2024. Metro's page also links its 2019 and 2013 manuals, so use the one your contract names.

Other forms on Metro's schedule

Appendix E of Metro's 2024 Labor Compliance Manual lists more than payroll. This is not every form on the schedule. Subs should know these:

• DAS 140, if you use apprenticeable trades. Metro's schedule has it due within ten days of executing the prime contract or subcontract, with proof of transmittal uploaded before work starts. Under 8 CCR 230, the DAS 140 goes to the apprenticeship committee within 10 days of signing and no later than the first day you have workers on the job.
• DAS 142, if you use apprenticeable trades. Under 8 CCR 230.1, a dispatch request needs at least 72 hours of written notice, not counting Saturdays, Sundays, and holidays. Metro's labor page says non-union contractors send the DAS 142 at least 72 hours before an apprentice should begin work, and that a union contractor sends it too when the union does not provide apprentices. Metro's schedule lists the DAS 142 with a 10-day due date from signing. Follow the stricter reading and meet whichever date comes first.
• Fringe Benefit Statement. Upload it with your first certified payroll, and update it as the information changes.
• Monthly Employment Utilization Report. Due within 15 days of month end. Each sub uploads its own.
• Affidavit of Compliance with California Prevailing Wage Law. Due within 60 days after you finish the work.

For how the two apprenticeship forms work, see DAS 140 and DAS 142.

What a miss costs

Under section 4.4 of Metro's manual, if satisfactory payrolls for the prior month are not in by the tenth, Metro retains 10 percent of the next monthly estimate, never less than $1,000 and never more than $10,000. Section 11.3 lets Metro withhold $500 per day for repeated violations, failure to submit certified payroll among them, after notice and a chance to be heard. Separately, Labor Code section 1776(h) sets $100 per calendar day for each worker if you do not hand over requested payroll records within 10 days of a written notice. From January 1, 2027, SB 909 raises this to $140; see what SB 909 changes.

Keep your DIR registration current

Metro's registration page says contractors must be registered with DIR at bid, at award, and throughout the contract. DIR's page sets the fee at $400, $800, or $1,200 for one, two, or three fiscal years. Our registration guide covers lapse penalties.

Where WellStanding fits

You send the export from your own payroll system. We prepare the DIR eCPR and the WH-347, which Metro's manual names for federally assisted contracts. A person reviews every filing, you read and sign the certification, and we file the eCPR. At setup we confirm where each project's filings must go, including Metro's system. Pricing is $995 one time setup and $249 per month for crews up to 25 workers, or $449 for 26 to 50 workers. First filing free. See who signs certified payroll.

Questions