Chapter 8. Office of the Director
Subchapter 4. Awarding Body Labor Compliance Programs
Article 2. Approval and Revocation of Approval of Labor Compliance Programs by Director

§16428. Revocation of Approval.

(a) The Director may revoke approval of a Labor Compliance Program after giving due notice, conducting a hearing, and finding cause for revocation. Cause for revocation of approval includes, but is not limited to:

(1) Failure of the Labor Compliance Program to monitor compliance with the requirements of the Labor Code and these regulations or to take appropriate enforcement action for violations of which it becomes or should have become cognizant;

(2) Failure of the Labor Compliance Program to file timely, complete, and accurate reports to the Director as required by Section 16431 or elsewhere in these regulations;

(3) A pattern of failures in hearings conducted pursuant to Labor Code Section 1742(b) either (A) to establish violations under Labor Code Sections 1775(a) and 1776(g) for which contract payments have been withheld or (B) to comply with the requirements imposed on enforcing agencies or their representatives in the prevailing wage hearing regulations at Sections 17201-17270 of Title 8 of the California Code of Regulations;

(4) Failure to comply with applicable laws and reporting requirements pertaining to conflicts of interest and the handling of personnel and payroll records and information.

(b) Interested parties may request the Director to revoke approval of a Labor Compliance Program. A request for revocation shall include evidence of failure of the Labor Compliance Program to monitor compliance with the requirements of the Labor Code and these regulations or to take enforcement action after becoming cognizant of a violation of the Labor Code or these regulations. A request for revocation shall also include any other relevant evidence.

(1) Approval of a Labor Compliance Program may be revoked by the Director based on a request by an interested party after a proceeding conducted as provided in subdivision (a). A copy of the request for revocation shall be provided to the Awarding Body as part of the notice required under subdivision (a).

(2) As part of a proceeding for revocation of approval based on a request by an interested party, the Director may require the Labor Compliance Program to furnish a supplemental report for the period between the ending date of the last annual report filed by the Labor Compliance Program pursuant to Section 16431 and the date of notice by the Director, and containing the information listed in subdivision (a) of said Section 16431.

(3) Revocation of approval of a Labor Compliance Program based on a request by an interested party is solely within the discretion of the Director. The duty to operate a Labor Compliance Program in accordance with the requirements of this subchapter runs solely to the Director and not to any worker, contractor, or interested party. The sole remedy for failure to comply with this duty is revocation of approval by the Director.

(c) Upon determining that the request for revocation will be denied without hearing, the Director shall give notice of the decision and of the reasons therefore by mail to the Labor Compliance Program, any Awarding Body or Joint Powers Authority that has contracted with the Labor Compliance Program pursuant to Section 16421(b) above, and any interested party that requested revocation.

(d) Upon determining that a hearing is necessary, the parties will be notified and a hearing on cause for revocation of Labor Compliance Program approval will be held in accordance with the procedures for notice and hearing proceedings set forth in 8 CCR Section 16304.

(e) Nothing in this Section shall be construed as requiring the Director either to extend any term of initial approval granted pursuant to Sections 16425 or 16426 above or to grant Final Approval except in accordance with Section 16427(b) above.

NOTE

Authority cited: Section 1773.5, Labor Code. Reference: Sections 1742(b), 1771.5, 1775(a) and 1776(g), Labor Code.

HISTORY

1. New section filed 2-20-92; operative 3-23-92 (Register 92, No. 13).

2. Amendment of section heading, section and Note filed 10-19-2004; operative 11-18-2004 (Register 2004, No. 43).