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Division of Labor Standards Enforcement

Compliance Monitoring Unit (CMU)

What awarding bodies must do

FAQs for awarding bodies

An awarding body or body awarding the contract means department, board, authority, officer or agent awarding a contract for public work.  In most cases the awarding body is a unit of state or local government, such as a city, county, school district, water district, special district, or a state agency.  However, in some cases the body awarding the contract may be a private entity that uses public funds for a public works construction project.

Every Public Works Project:

  • Provide notice of the state’s prevailing wage requirements in every bid document and public works contract.
  • Provide for applicable prevailing wage determinations to be posted at each job site.
  • Require all contractors and subcontractors working on the project to keep certified payroll records in accordance with Labor Code section 1776 and to provide those records on request.
  • Upon awarding the public works contract, provide notice of the project to DIR using the PWC-100 form. (By law, this notice is required only for projects of $30,000 or more that are subject to apprenticeship requirements or for projects that are subject to CMU requirements.  However, awarding bodies are encouraged to send these notices for all projects.)
  • Take cognizance of and report any suspected violations of prevailing wage requirements to the Labor Commissioner.
  • Cooperate with the Labor Commissioner/Division of Labor Standards Enforcement (DLSE) in any investigation of suspected violations, and withhold contract payments in accordance with any lawful order by DLSE.

Project Subject to DIR Monitoring and Enforcement:

  • Include language in bid invitation and public works contract that project will be subject to monitoring and enforcement by DIR, including the obligation to submit certified payroll records directly to the CMU.
  • Upon receipt of e-mail notification from DLSE that project is subject to CMU requirements (normally within 10 days after submission of PWC-100 form), follow instructions provided in that notice to confirm registration of project in the CMU’s electronic certified payroll reporting (eCPR) system. 
  • Comply with any CMU notice requiring contract payments to be withheld due a contractor’s failure to submit proper CPRs.
  • Cooperate with the CMU and DLSE in any investigation of suspected violations, and withhold contract payments in accordance with any lawful order by DLSE.
  • Receive and pay monthly invoices for DIR’s monitoring and enforcement services.  (Note:  when the maximum fee of ¼ of 1% of state bond proceeds or ¼ of 1% of total project costs is reached, the billings for the project will stop, although monitoring and enforcement will continue.)

Additional requirement for a project that is not yet subject to CMU requirements but may seek state bond funding in the future:

  • Enter into an agreement with the Labor Commissioner to have the project monitored and enforced by DIR, subject to the same requirements and fees as a project that is required to use the CMU.

Additional requirement for Awarding Bodies that choose to use the CMU on all projects in exchange for higher prevailing wage exemptions:

  • Enter into an agreement with the Labor Commissioner to have all projects monitored and enforced by DIR, subject to the same requirements and fees as projects that are required to use the CMU.
  • For each project, conduct a pre-job conference with contractors and subcontractors to discuss federal and state labor law requirements and furnish copies of suggested notices or reporting forms.  A list of recommended items to be cover is available at http://www.dir.ca.gov/t8/16421_appendixA.html

January 2012