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Labor Compliance Programs - Office of the Director

Types of Labor Compliance Programs / Statutes Requiring LCPs / Approved Programs:

The term “labor compliance program” may refer in general to any kind of organized system or entity for monitoring or enforcing compliance with prevailing wage requirements on public works projects.  For the purposes of laws administered and enforced by this Department, however, a Labor Compliance Program (“LCP”) refers to an entity that has been approved by the Director to monitor and enforce compliance with the state’s prevailing wage laws, following standards set by Labor Code section 1771.5(b) and the Directors’ regulations at Title 8, California Code of Regulations, sections 16421 – 16439.  An “approved LCP” always refers to the entity that has been approved to do this work rather than its methodology or manual of operation.

The first LCP statute, Labor Code section 1771.5, offered the incentive of higher prevailing wage exemptions for any awarding body that initiated and enforced a labor compliance program with specified components, on all of its public works projects.  The handful of LCPs that have been established and approved under the original law are referred to variously as “all-projects,” “wall-to-wall,” or “legacy” programs, denoting that they enforce compliance on all of the awarding body’s projects and that they were the first DIR-approved programs.

Subsequent legislation began to require awarding bodies to initiate and enforce an LCP or to contract with a third party to initiate and enforce an LCP on projects that were funded through specific bonds or built pursuant to a particular statutory authorization. One of the first and most prominent of these statutes was Labor Code section 1771.7 (adopted in 2002 through AB 1506), which required LCPs for school construction projects funded in any part by the 2002 or 2004 School Construction Bond Acts.  Currently (as of January 1, 2013) there are about two dozen statutes that require awarding bodies to use an LCP for specified types of public works projects, including for several types of design-build projects.  LCPs that are only used for specific projects to meet a statutory LCP requirement have sometimes been referred to as “limited purpose” or “single project” programs.

Between 2003 and 2010, the Director also separately approved public and private entities as “third party programs" that could provide LCP services to awarding bodies on a contract basis.  However, because the state’s only regulatory interest is in whether awarding bodies have appropriate LCPs, the Director recently discontinued all third party program approvals and “grandfathered” those approvals over to awarding bodies that had contracted with those private programs. This change does not preclude awarding bodies from continuing to contract with third parties for required LCP services. However, by law, awarding bodies that contract out all or part of their LCP responsibilities to a third party are ineligibile for a waiver of CMU fees under SBX2-9 and AB 436.

By regulation, the Department has agreed to maintain lists of statutes that require awarding bodies to use LCPs and lists of approved LCPs.  The lists of approved programs are further broken down into types of programs and individual program restrictions may be noted in order to assist the public in determining which projects are subject to LCP monitoring and enforcement and any other limitations or alternative requirements that may apply to the LCP in question.

List of State Statutes That Require Use of an Approved LCP [or the CMU] for specified projects (updated 1/1/2012)

Lists of Approved Labor Compliance Programs

  • Awarding Bodies Approved to use a Previously-Approved LCP in Lieu of the DIRís Compliance Monitoring Unit
    • LCP used for all projects under awarding body’s authority:
      • California Department of Transportation (Caltrans)
      • City of Los Angeles
      • County of Sacramento Municipal Services Agency
      • Los Angeles Unified School District
    • LCP used for projects that otherwise would be subject to DIR monitoring and enforcement under SBX2-9 and AB 436:
      • City of San Diego
      • City of Santa Clarita
      • County of Humboldt
      • County of Ventura
      • Downey Unified School District
      • Kern County Superintendent of Schools
      • Madera Unified School District
      • Mountains Recreation and Conservation Authority
      • Paso Robles Joint Unified School District
      • Port of Long Beach
      • Trustees of the California State University
      • San Mateo County Transit District and Peninsula Corridor Joint Powers Board
      • Southern California Regional Rail Authority

See the following spreadsheet listing all awarding agencies that have entered into a wall-to-wall agreement or project specific agreement with the Labor Commissioner’s Public Works Compliance Monitoring Unit pursuant to Labor Code section 1771.5(f). These awarding bodies have agreed to have the PWCMU monitor all projects subject to a fee of ¼ of one percent.
Awarding Bodies that Have Elected to Comply with Labor Code section 1771.5(f) and Pay Fees for CMU Monitoring and Enforcement on all Projects Under SBX2-9 and AB 436


* Please check individual listing for any specific conditions or restrictions on a program’s approval.

Notice of Discontinuance of Private Third Party Labor Compliance Programs (issued 7/1/11)