IR #2009-35
November 24, 2009

Erika Monterroza
Dean Fryer
(415) 703-5050


Labor Compliance Monitoring Changes for Public Works Projects

San Francisco—The Department of Industrial Relations (DIR) today announced the development of the new Compliance Monitoring Unit which is being created following changes in California’s labor compliance monitoring for public works projects. The changes have been established in accordance with Senate Bill X2-9 that Gov. Arnold Schwarzenegger signed into law earlier this year with regulations expected to be finalized in May.

“The new Compliance Monitoring Unit will conduct the required monitoring and enforcement through the Labor Commissioner’s Office”, said DIR Director John C. Duncan. “The monitoring will be required for projects funded by any state-issued public works construction bonds and investigators will monitor requirements for workers’ compensation, recordkeeping and correct payment of prevailing wages.”

The fee-based compliance monitoring will also be available for other awarding agencies that meet certain criteria and agree to enhanced monitoring and enforcement in order to qualify for higher prevailing wage exemption levels.

Formal rulemaking to establish the regulatory standards to govern the fee-based monitoring are now underway. The proposed regulatory package was published by the Office of Administrative Law on November 20 with a public comment period ending with a public meeting on Jan 6, 2010. The public meeting will be held in the Monterey Room of the San Francisco state building at 455 Golden Gate Ave.

The proposal regulation was developed in consultation with public agencies, contractors, representatives of unions, labor compliance programs and other stakeholders in prevailing wage enforcement matters. Public input is welcomed as a part of the formal rulemaking process refined the proposed language for final approval from the Office of Administrative Law.

Full details on the regulations proposed to implement the required changes are available on the Department’s website at


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