CSLB Law & Business ExamPublic WorksMedium
A framing subcontractor completed work on a public school project 18 months ago. A DIR compliance officer now requests the certified payroll records for that project. Under Labor Code §1776, how long must the subcontractor have retained these records?
- A1 year from completion of the contract
- B3 years from completion of the contract
- C7 years from completion of the contract
- D2 years from completion of the contract
Show answer & explanationAnswer & explanation
Correct answer: B. 3 years from completion of the contract
Labor Code §1776 requires contractors and subcontractors to retain certified payroll records for at least three years after completion of the public works contract. Since the request came 18 months after completion, the subcontractor is still required to have the records available.
Why the other options are wrong
- A. One year is too short and does not meet the statutory minimum.
- C. Seven years exceeds the requirement and is not the standard used for payroll records.
- D. Two years is also less than the required retention period.
Certified Payroll Retention
Contractors on public works must keep certified payroll records for at least three years after project completion.
- Governed by Labor Code §1776
- Records must be available for inspection by DIR and awarding body
- Failure to produce records can result in penalties and withheld payments
Memory trick: Three years, no fears — keep the payroll near.