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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

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§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,provided thatthe failure is (A) serious or sustained, (B) harmful to the interests of workers employed on a project for which the Labor Compliance Program has monitoring and enforcement responsibilities, and (C) not based on a good faith interpretation of legal requirements or the current enforcement practices of the Labor Commissioner;

(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.

(5) Failure to comply with requirements imposed on Labor Compliance Programs by statute or these regulations or with any terms, conditions, or restrictions imposed by the Director on the Labor Compliance Program's approval.

(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. When submitting a request for revocation pursuant to this subpart, an interested party shall also provide a complete copy of the request and all supporting evidence to the Labor Compliance Program.

(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 subpart (a) above. A copy of the request for revocation shall be provided to the Awarding Body as part of the notice required under subpart (a) above.

(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 subpart (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 section 16304 of Title 8 of the California Code of Regulations.

(e) The Labor Commissioner is authorized to conduct investigations into whether a Labor Compliance Program has operated in accordance with the requirements of this subchapter and to participate in the role of prosecutor in any revocation proceedings. The Director shall make all final determinations.

(f) Nothing in this section shall be construed as (1) requiring the Director to extend any approval granted on a temporary or interim basis pursuant to sections 16425 or 16426 above or (2) restricting the Director's authority to impose conditions or restrictions on a Labor Compliance Program's approval in lieu of revocation.


Note: Authority cited: Sections 55 and 1773.5, Labor Code. Reference: Sections 55, 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).

3. Amendment of subsections (a)(2)-(3), new subsection (a)(5), amendment of subsections (b)(1)-(2) and (d), new subsection (e), subsection relettering and amendment of newly designated subsection (f) and Note filed 12-22-2008; operative 1-21-2009 (Register 2008, No. 52).

4. Amendment of subsections (a)(1) and (b) filed 6-29-2010; operative 8-1-2010 pursuant to Government Code section 11343.4(b) (Register 2010, No. 27).

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