Contractor Licensing Board Steps in Acquiring a License Division of Labor

Contractor Licensing Board Steps in Acquiring a License Division of Labor Jobs Act Requirements August 23, 2018

ADMINISTRATION Mitchell E. Woodrum - Commissioner Michael S. Sams - Deputy Commissioner Kathy L. Rucker - Licensing Director William F. Jordan – Wage & Hour Director

GENERAL INFORMATION 1900 Kanawha Boulevard East State Capitol Complex - Building 3, Room 200 Charleston, WV 25305 Phone #: (304) 558-7890 Facsimile #: (304) 558-5174 Website: Labor.wv.gov Email Address: Licensing@wv.gov

CONTRACTOR LICENSE STEPS TO ACQUIRE A CONTRACTOR LICENSE • Contact and provide the Board’s staff with your scope of work in order to verify the classification(s) and exam(s) required; • Register with our testing agent and take the exam(s): ProV, Inc. 200 Association Drive, Suite 190 Charleston, WV 25311 (304) 414-0190 Ext 3 or Toll Free: (866) 720-7768 www.2prove.com

CONTRACTOR LICENSE All entities must take the WV Business & Law exam. Additional exam(s) are required to engage in the construction activity. The classification(s) is based on the scope of work being contracted, performed or sub-contracted. In order to be a qualifier, an owner or full-time employee can take the exam(s)

CONTRACTOR LICENSE • Contact the WV Tax Department and acquire your Business Registration (Must have a Federal Employer Identification #); • Contact the WV Secretary of State and determine if you are required to register and obtain a Certificate of Authority; • If your entity has employees, you are required to submit proof of Workers’ Compensation and Unemployment Compensation coverage; • Commercial construction requires a wage bond to be posted in the amount of four (4) weeks gross payroll plus fifteen (15%)unless you qualify for one (1) of the five (5) following exemptions:

CONTRACTOR LICENSE Wage Bond Exemptions Contractor has no employees physically working in West Virginia; or Contractor has been in business in West Virginia, with employees, for at least one (1) year; or Contractor has been in business in another state for at least five (5) years; or Contractor can report to the Division of Labor $100,000 or more in available assets; or Contractor is a subsidiary of a parent company that has been in business for at least five (5) years.

CONTRACTOR LICENSE • Complete the Contractor Licensing Board’s Application/Affidavitand submit with all documentation acquired from the other agencies.

CONTRACTOR LICENSE RECIPROCITY AGREEMENTS Alabama - HVAC North Carolina – Electrical Only Ohio – Electrical Ohio – Plumbing Ohio - HVAC WV Fire Marshal – Master Electrician / Electrical NASCLA (General Building – Scores after 9/1/2013)

CONTRACTOR OR EMPLOYEE On a construction project, every worker is required to be an employee of a licensed contractor or a licensed contractor. A worker receiving a “1099” is an independent contractor on a construction project and is required to be properly licensed. In contrast, a worker receiving a W-2 is an Employee.

JOBS ACT A contractor or subcontractor working on a public authority’s construction project with a total cost of $500,000.00 or more that is funded entirely with public funds, excluding improvements funded in whole or in part by federal funds, must comply with the following West Virginia Jobs Act requirements. Hire at least seventy-five (75%) of employees from the local labor market, with two (2) employees permitted from outside the local labor market. The Local Labor Market (LLM) includes every West Virginia county and any county outside of West Virginia if any portion of that county is within fifty (50) miles of the border of West Virginia. An employee’s primary residence must be located within the local labor market to comply with the Jobs Act requirements. Contact the nearest WorkForce West Virginia office and complete a job order if you are unable to employ the minimum number of employees from the local labor market.

JOBS ACT WorkForce WV will either refer qualified job applicants or issue a written waiver permitting the employer to fill any positions covered by the waiver from outside the local labor market. There can be a combination of referrals and waivers. Completeand submit certified payroll documents on a weekly basis to the public authority and/or Division of Labor that include: Name and address of the employer; Identification of the payroll number and the work week ending date; Name of the project location; Identification of the contract number; Names of employees; Each employee’s work classification or job title; (waiver confirmation and identify supervisory) Physical address of the primary residence for each employee, including the county; (determine within the LLM) The days and hours each employee worked; (calculate the seventy-five (75%) requirement) Hourly rate of pay or salary for each employee; Gross wages, federal and state withholding amounts, or other authorized deductions, and net pay. (identify subs and 3rd tier contractors instead of employees)

JOBS ACT During the performance of on-site inspections and record reviews we have identified issues needing corrected. The contractors were educated and are now in compliance. Listed below are a few of the most common issues: Failing to submit first set of payroll documents at the beginning of a project in a timely manner. Failing to include the information on payroll documents in order to verify compliance. Failing to acquire a waiver for the correct position(s) on a project. Failing to provide a list of sub and 3rd tier contractors before project starts. Pay civil penalties of between $250 to $500 per day for each employee needed to meet the 75% requirement.

JOBS ACT All correspondence, including questions, can be submitted to: JOBSACT@WV.GOV

Contractor Licensing Board Steps in Acquiring a License Division of Labor