Chapter 8. Office of the Director
Subchapter 3. Payment of Prevailing Wages upon Public Works
Article 7. Registration of Public Works Contractors

§16414. Revocation of Previously Approved Registration.

(a) The Labor Commissioner may revoke the registration of a contractor or subcontractor on any of the following grounds:

(1) Evidence that the contractor or subcontractor no longer meets all the qualifications specified in Labor Code Section 1725.5;

(2) Evidence that at the time of the most recent registration or renewal, the contractor or subcontractor did not meet the qualifications specified in Labor Code Section 1725.5 or made a certification to the Department that the contractor or subcontractor knew or should have known to be false at the time the certification was made; or

(3) Evidence that within the preceding twelve (12) months the contractor or subcontractor knowingly or negligently, or by reason of a failure to inquire, entered into a subcontract with another person or entity to perform public work in violation of the public works contractor registration requirements of Labor Code Sections 1725.5 and 1771.1.

(b) The notice of revocation shall be in writing, shall specify the grounds upon which registration is being revoked, and shall identify or describe the evidence upon which the revocation is based. The notice shall also specify the length of time during which the contractor or subcontractor will be disqualified from registering with the Department. The period of disqualification shall be no less than 30 days and no greater than 24 months following the effective date of revocation. The Labor Commissioner shall use the substantive standards specified in Labor Code Section 1775(a)(2)(A)(i) and (ii) when determining the length of disqualification, and may postpone or waive the period of disqualification for first time violation that was unintentional and did not prejudice the rights of any other interested party or hinder the Labor Commissioner's ability to monitor and enforce compliance with the public works requirements of the Labor Code.

(c) The Labor Commissioner shall send the notice of revocation by email and first class mail, using the most recent contact information provided by the contractor or subcontractor through the registration process. A copy of the notice shall be sent to any awarding body, contractor, or subcontractor known by the Labor Commissioner to have directly engaged the subject contractor or subcontractor for ongoing work that requires registration pursuant to Labor Code Sections 1725.5 and 1771.1.

(d) Except as provided in section 16417, revocation shall be effective at 11:59 p.m. on the tenth day following the date the Labor Commissioner sends the written notice of revocation specified in subsections (b) and (c), unless prior to that deadline the Department receives the contractor or subcontractor's written appeal under subsection (e).

(e) A notice of revocation may be appealed by submitting a written request for hearing in the manner specified in section 16415. The appeal shall clearly identify or include a copy of the notice being appealed and shall specify the grounds for appeal, including why the contractor or subcontractor believes that the notice is in error and registration should not be revoked. The appeal may include additional evidence or information in support of the contractor or subcontractor's position. An appeal may be submitted anytime within sixty (60) days following the date the Labor Commissioner sends the written notice of revocation; however, only an appeal that is transmitted and received by the Department within the ten (10) day deadline specified in subsection (d) will stay the effective date of revocation. In the case of a later appeal, the contractor or subcontractor will be ineligible to bid or work on public works unless and until the revocation is later reversed or rescinded or expires by its own terms or by operation of law, and the contractor or subcontractor is otherwise qualified to register under Labor Code Section 1725.5 and these regulations.

(f) A hearing shall be set within thirty (30) days of receipt of an appeal submitted pursuant to subsections (d) or (e), and priority shall be given to an appeal received within ten (10) days that stays revocation. With the consent of the appellant, the hearing may be conducted by conference call or other electronic means in lieu of personal appearances.

Note: Authority cited: Section 1773.5, Labor Code. Reference: Sections 1725.5, 1771.1 and 1775, Labor Code.

HISTORY

1. New section filed 3-23-2020; operative 5-15-2020 pursuant to Government Code section 11343.4(b)(3) (Register 2020, No. 13).