California Code of Regulations › Title 8 - Industrial Relations › Division 1 - Department of Industrial Relations › Chapter 8 - Office of the Director › Subchapter 4.8 - Debarment › Section 16801 - Investigations: Duties, Responsibilities and Rights of the Parties

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Division of
				  Labor Standards Enforcement. The Division of Labor Standards Enforcement
				  (hereinafter "DLSE") may investigate any alleged violation of the provisions of
				  chapter 1, part 7 of the California Labor Code for purposes of enforcing Labor
				  Code section
				  1777.1.
				  Investigations pursuant to section
				  1777.1 are for
				  the purpose of determining a Respondent's willful violation, or violation with
				  the intent to defraud, of the provisions of chapter 1, part 7 of the California
				  Labor Code, with the exception of section
				  1777.5.
(1) Where a preliminary investigation reveals
				  that there is insufficient evidence to continue the investigation, DLSE may
				  close the investigation and shall notify the Respondent and awarding body in
				  writing.
(2) In the event an
				  investigation of any Respondent reveals a violation of Labor Code section
				  1777.1, DLSE shall notify the
				  awarding body in writing and shall serve upon the Respondent a Notice of
				  Hearing together with a Statement of Alleged Violations, which shall
				  specifically set forth DLSE's allegations against the Respondent.
(A) Service of both the Notice of Hearing and
				  Statement of Alleged Violations shall be complete when mailed, by first class
				  postage, to the last address of record for the Respondent listed with the State
				  Contractors License Board or, in the event the Respondent is not licensed by
				  the State Contractors License Board, the last known address of the Respondent
				  available to the awarding body or, in the case of a subcontractor, the last
				  known address available to the general contractor with whom the subcontractor
				  contracted in the performance of the public works project under investigation.
				  In the event there is neither an address of record with the State Contractors
				  License Board or the awarding body or general contractor, the Notice of Hearing
				  and Statement of Alleged Violations shall be served pursuant to the provisions
				  of the Code of Civil Procedure, sections
				  415.10
				  -
				  415.50.
				  concerning the service of civil summons.
(B) The Notice of Hearing shall list the
				  date, time and place of the hearing which shall not be scheduled sooner than
				  forty-five days after the date of the mailing of the Notice of Hearing and
				  Statement of Alleged Violations.
(C) The Respondent shall have the opportunity
				  to review and copy such records from the investigative file of DLSE which are
				  not subject to either attorney-client or work product privileges. The
				  Respondent shall be entitled to a reasonable number of subpoenas but shall be
				  liable for any costs of service of the subpoenas, or any other witness or
				  mileage fees incurred.
Mileage and Witness fees shall be set as specified in
					 Government Code section
					 68093. In
					 the exercise of his or her discretion, the Hearing Officer may limit the number
					 of witnesses subpoenaed either for the purpose of corroboration or for
					 establishing a single material fact in issue, or where the Respondent has not
					 furnished satisfactory evidence that the witness will be able to give necessary
					 and competent testimony material to the issues at the hearing.
(D) In presiding over a hearing conducted
				  pursuant to section
				  1777.1(c),
				  the Hearing Officer shall control the order of presentation of evidence, and
				  shall direct and rule on matters concerning the conduct of the hearing and of
				  those persons appearing. The hearing shall be conducted in an informal setting
				  preserving the rights of the Respondent. The formal rules of evidence shall not
				  apply and any relevant evidence may be admitted if it is the sort of evidence
				  on which responsible persons are accustomed to rely in the conduct of serious
				  affairs, regardless of the existence of any common law or statutory rule which
				  might make improper the admission of such evidence over objection in civil
				  actions. However, no determination shall be made based solely upon any evidence
				  which would not be admissible, over objection, in a court of law in this
				  state.
(E) The hearing shall be
				  phonographically recorded. The Respondent may request a copy of the recording,
				  and shall bear all costs incidental to the preparation of same. The Respondent
				  may arrange to have the hearing reported by a certified court reporter and
				  shall bear all cost incidental thereto. If the record of the hearing is
				  transcribed by the Respondent, a copy thereof shall be provided to the Labor
				  Commissioner free of any cost within five (5) days of such
				  transcription.
(F) Oral evidence at
				  the hearing shall be taken only upon oath or affirmation. The Respondent shall
				  have the right to call and examine witnesses, to introduce exhibits and to
				  rebut the evidence against him or her.
(G) Any Respondent to a proceeding hereunder
				  may, but need not, be represented by legal counsel during the entire course of
				  the investigation, including the hearing.
(H) Continuances of hearings scheduled
				  pursuant to Labor Code section
				  1777.1(c)
				  ordinarily will not be granted. The Hearing Officer, in the exercise of his or
				  her sound discretion, may grant a continuance of the hearing only upon a
				  showing of extraordinary circumstances and good cause.
(I) At the conclusion of the hearing the
				  Hearing Officer may take the matter under submission or allow the introduction
				  of post hearing briefs. The Hearing Officer shall prepare a Findings of Fact
				  and Conclusions and a proposed Determination which shall contain the
				  recommended penalty, if applicable. The Labor Commissioner or his designee
				  shall have the right to modify, change or adopt the proposed Findings of Fact
				  and Conclusions, the proposed Determination and any recommended penalty. No
				  Determination or penalty shall be final until adopted by the State Labor
				  Commissioner.
(J) The Determination
				  of the Labor Commissioner after the hearing shall be served on the Respondent
				  as provided in subdivision (A), above.
(K) In the event that the Determination of
				  the Labor Commissioner results in an order to debar the Respondent, DLSE shall
				  notify through the Division of Labor Statistics and Research all awarding
				  bodies of such Determination immediately upon service of the Determination on
				  the Respondent. In addition, DLSE shall maintain a record of each and every
				  debarment under the provisions of Labor Code section
				  1777.1 for a period of 5 years from
				  the date of the debarment, and shall list the name and last known address of
				  the debarred contractor or subcontractor, the date of the debarment and the
				  term of the debarment, and shall make that information available to the public,
				  upon written request, which encloses a self-addressed and stamped
				  envelope.