Compliance Monitoring Unit (CMU)

The Compliance Monitoring Unit or “CMU” is a new component within the DLSE that was created to monitor and enforce prevailing wage requirements on public works projects that receive state bond funding and on other projects that are legally required to use the CMU. The CMU began operations on January 1, 2012, following the recent adoption of AB 436 and approval of revisions to program regulations. By actively monitoring compliance on an ongoing basis while work is being performed, the CMU will play a special role in ensuring that public works construction workers are promptly paid the proper prevailing wage rates and in helping maintain a level playing field for contractors who comply with the law.

Effective Date and Applicability: The laws and regulations that govern the new program are effective January 1, 2012. Only projects for which the public works contract is awarded on or after January 1, 2012 are subject to the CMU requirements. Contracts awarded prior to January 1, 2012 will remain subject to the prior monitoring and enforcement rules (labor compliance programs for some bond-funded or design-build projects or no specific monitoring requirement) for the life of those projects.

PWC 100 Form – Awarding Bodies: Completion of this form puts you in compliance with the requirement to notify both the Division of Apprenticeship Standards and the Division of Labor Standards Enforcement, Compliance Monitoring Unit of a public works awarded contract. Please complete and submit the electronic PWC 100 form.

Definition of Awarding Body:

An awarding body or body awarding the contract means department, board, authority, officer or agent awarding a contract for public work. In most cases the awarding body is a unit of state or local government, such as a city, county, school district, water district, special district, or a state agency. However, in some cases the body awarding the contract may be a private entity that uses public funds for a public works construction project.

CMU requirements apply to:

Any public works project paid for in whole or part out of public funds that are derived from bonds issued by the state, except Proposition 84 (2006 Water project bond initiative)
Public entities that utilize design – build contracts as a project delivery method that has a CMU requirement within the authorizing statute
Projects undertaken by an awarding body that elects to use the CMU on all of its projects.

Exceptions (i.e., projects not covered by CMU):

Construction projects under the control of an awarding body that has been previously approved by the Department of Industrial Relations to operate its own in-house labor compliance program (LCP) for all projects. A list of approved in-house LCP programs is listed at www.dir.ca.gov/lcp.asp.
Neither CMU nor LCP are required on projects covered by qualified project labor agreements (i.e. collective bargaining agreements that bind all contractors on the project and contain mechanisms for resolving wage disputes).
Proposition 84-funded projects require LCP – no alternatives or exceptions.
Any project that does not fall within the CMU requirements or one of the three exception categories listed above are not covered by CMU requirements. Such a project may include:
- A locally or federally funded project that does not receive any state bond funding or
- Design-build projects that do not have a CMU requirement within the authorizing statute (including CSU design-build projects).