California Code of Regulations › Title 8 - Industrial Relations › Division 1 - Department of Industrial Relations › Chapter 8 - Office of the Director › Subchapter 4.5 - Compliance Monitoring and Enforcement by Department of Industrial Relations › Article 2 - Compliance Monitoring by Labor Commissioner › Section 16461 - Review of Payroll Records and Other Monitoring and Investigative Activities of Compliance Monitoring Unit

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(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.
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).
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.