Chapter 8. Office of the Director
Subchapter 4. Awarding Body Labor Compliance Programs
Article 3. Reports and Audits

§16432. Audits.

(a) Audits may be conducted when deemed necessary by the Labor Compliance Program or upon request of the Labor Commissioner.

(b) An audit consists of a comparison of payroll records to the best available information as to the actual hours worked and classifications of workers employed on the contract. An audit is sufficiently detailed when it enables the Labor Compliance Program, and the Labor Commissioner in reviewing proposed penalties, to draw reasonable conclusions as to compliance with the requirements of Chapter 1 of Part 7 of Division 2 of the Labor Code, and to enable accurate computation of underpayment of wages to workers and of applicable penalties and forfeitures. Records shall be made available to show that the audits conducted are sufficiently detailed to verify compliance with the requirements of Chapter 1 of Part 7 of Division 2. An audit record in the form set out in Appendix B presumptively demonstrates sufficiency.

16432 Appendix B

NOTE

Authority cited: Section 1773.5, Labor Code. Reference: Sections 224, 226, 1771.5, 1773.1, 1773.2, 1776, 1777.5, 1778, 1810, 1815, 1860 and 1861, Labor Code.

HISTORY

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

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