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(a) The function of the Compliance Monitoring Unit is to ensure that public works contractors performing work in the execution of a contract, on projects for which a fee is paid to the Department of Industrial Relations, comply with the prevailing wage requirements found in the Division 2, Part 7, Chapter 1 of the Labor Code. Among other things, this section is intended to (1) provide the Compliance Monitoring Unit, Awarding Bodies, public works contractors, and representatives of the Department of Industrial Relations and the Division of Labor Standards Enforcement with common terminology as they perform their respective roles in prevailing wage compliance, and (2) set forth the manner in which the Compliance Monitoring Unit will ensure compliance with and enforcement of prevailing wage laws on public works projects.

(b) Contractors and subcontractors shall keep accurate payroll records in accordance with Labor Code Section 1776, and such records shall be furnished to the Compliance Monitoring Unit at times designated by the Awarding Body in the contract, which shall be at least monthly, or within 10 days of any separate request by the Compliance Monitoring Unit. Payroll records shall be furnished in a format prescribed by section 16401 of Title 8 of the California Code of Regulations, with use of the current version of DIR's “Public Works Payroll Reporting Form” (A-1-131) and “Statement of Employer Payments” (DLSE Form PW26) constituting presumptive compliance with this requirement, provided the forms are filled out accurately and completely. In lieu of paper forms, the Compliance Monitoring Unit may provide for and require the electronic submission of certified payroll reports.

(c) Payroll records timely furnished by contractors and subcontractors in accordance with this section shall be reviewed by the Compliance Monitoring Unit as promptly as practicable after receipt thereof, but in no event more than 30 days after such receipt. “Review” for this purpose means the inspection of the records furnished to determine whether (1) all appropriate data elements identified in Labor Code Section 1776(a) have been reported; (2) certification forms have been completed and signed in compliance with Labor Code Section 1776(b); and (3) no less than the correct prevailing wage rates have been reported as paid for each classification of labor listed thereon.

(d) On a random basis and at such other times as it deems appropriate, the Compliance Monitoring Unit may also confirm the accuracy of payroll reports. “Confirmation” for this purpose means the corroboration of information in payroll reports through independent sources, including without limitation worker interviews, examination of any time and pay records found within the definition of “Payroll Records” in section 16000 of Title 8 of the California Code of Regulations, direct verification of “Employer Payments” (as defined at section 16000 of Title 8 of the California Code of Regulations) through third-party recipients of those payments, or any other legal and reasonable method of corroboration. As part of its confirmation process, the Compliance Monitoring Unit may require contractors and subcontractors to furnish for inspection itemized statements prepared in accordance with Labor Code Section 226. The Compliance Monitoring Unit may conduct random confirmation based on a recognized statistical sampling of the records submitted.

(e) Representatives of the Compliance Monitoring Unit may conduct in-person inspection(s) at the site or sites at which the contract for public work is being performed ( “On-Site Visits”). On-Site Visits may be undertaken randomly or as deemed necessary by the Compliance Monitoring Unit. On-Site Visits may include visual inspection of required job site notices, including but not limited to (1) the determination(s) of the Director of Industrial Relations of the prevailing wage rate of per diem wages required to be posted at each job site in compliance with Labor Code Section 1773.2; (2) the Notice of pay days and time and place of payment required by Labor Code Section 207; and (3) the form prescribed by section 16451(d) above. On-Site Visits may also include inspections of records, inspections of the work site and observation of work activities, interviews of workers and others involved with the project, and any other activities deemed necessary by the Compliance Monitoring Unit to ensure compliance with prevailing wage requirements. In accordance with Labor Code Section 90, the Compliance Monitoring Unit shall have free access to any construction site or other place of labor and may obtain any information or statistics pertaining to the lawful duties of the Labor Commissioner, including but not limited to evidence of compliance with Labor Code Section 226 [itemized wage statements for employees] and any other laws enforced by the Labor Commissioner.

(f) An Audit shall be prepared by the Compliance Monitoring Unit upon determining that there has been a violation of Division 2, Part 7, Chapter 1 of the Labor Code resulting in the underpayment of wages. An “Audit” for this purpose means as a written summary reflecting prevailing wage deficiencies for each underpaid worker, and including any penalties to be assessed under Labor Code Sections 1775 and 1813.

Note: Authority cited: Sections 54, 55, 1771.55 and 1773.5, Labor Code. Reference: Sections 90, 207, 226, 1771.5, 1771.55, 1773.2, 1775, 1776 and 1813, Labor Code.

HISTORY

1. New section filed 6-29-2010; operative 8-1-2010 pursuant to Government Code section 11343.4(b) (Register 2010, No. 27).

2. Repealer filed 11-4-2010 as an emergency; operative 11-4-2010 (Register 2010, No. 45). A Certificate of Compliance must be transmitted to OAL by 5-3-2011 or emergency language will be repealed by operation of law on the following day.

3. Repealer refiled 5-2-2011 as an emergency; operative 5-2-2011 (Register 2011, No. 18). A Certificate of Compliance must be transmitted to OAL by a8-1-2011 or emergency language will be repealed by operation of law on the following day.

4. Repealer refiled 8-1-2011 as an emergency; operative 8-1-2011. A Certificate of Compliance must be transmitted to OAL by 10-31-2011 or emergency language will be repealed by operation of law on the following day (Register 2011, No. 31).

5. Reinstatement of section as it existed prior to 11-4-2010 emergency repeal by operation of Government Code section 11346.1(f) (Register 2011, No. 49).