HomeMy WebLinkAbout2014-06-04 PacketPage 1 of 3
CITY OF UKIAH
CITY COUNCIL AGENDA
Regular Meeting
CIVIC CENTER COUNCIL CHAMBERS
300 Seminary Avenue
Ukiah, CA 95482
June 4, 2014
6:00 p.m.
1. ROLL CALL
2. PLEDGE OF ALLEGIANCE
3. PROCLAMATIONS/INTRODUCTIONS/PRESENTATIONS
a. Presentation: Quilt of Valor
b. Introduction: New Poet Laureate – Bill Churchill
c. Proclamation: Soroptimist International of Ukiah Day
4. PETITIONS AND COMMUNICATIONS
5. APPROVAL OF MINUTES
a. Minutes of May 28, 2014, Continued Meeting.
6. RIGHT TO APPEAL DECISION
Persons who are dissatisfied with a decision of the City Council may have the right to a review of that decision by a court.
The City has adopted Section 1094.6 of the California Code of Civil Procedure, which generally limits to ninety days (90)
the time within which the decision of the City Boards and Agencies may be judicially challenged.
7. CONSENT CALENDAR
The following items listed are considered routine and will be enacted by a single motion and roll call vote by the City
Council. Items may be removed from the Consent Calendar upon request of a Councilmember or a citizen in which event
the item will be considered at the completion of all other items on the agenda. The motion by the City Council on the
Consent Calendar will approve and make findings in accordance with Administrative Staff and/or Planning Commission
recommendations.
a. Adoption of Resolution Approving Labor Compliance Program Application Form and Manual
to be Submitted to the California Department of Industrial Relations as Required by the
Proposition 84 Nature Education Grant Program.
b. Authorize the City Manager to Negotiate and Execute a Professional Services Contract for
Information Technology Services with Portola Systems, Inc. to be Performed on an On-Call,
As-Needed Basis.
Page 2 of 3
8. AUDIENCE COMMENTS ON NON-AGENDA ITEMS
The City Council welcomes input from the audience. If there is a matter of business on the agenda that you are interested in, you
may address the Council when this matter is considered. If you wish to speak on a matter that is not on this agenda, you may do
so at this time. In order for everyone to be heard, please limit your comments to three (3) minutes per person and not more than
ten (10) minutes per subject. The Brown Act regulations do not allow action to be taken on audience comments in which the
subject is not listed on the agenda.
9. COUNCIL REPORTS
10. CITY MANAGER/CITY CLERK REPORTS
11. PUBLIC HEARINGS (6:15 PM)
a. Adopt a Resolution Determining that an Emergency Exists in the Construction and
Operation of Well #9, the Construction of which will be Necessary to Prevent the Disruption
of Water Services to the Residents of the City of Ukiah, and Directing the City Manager to
Undertake All Steps Necessary to Have the Well Constructed Without Going Through a
Competitive Bidding Process Pursuant to Public Contract Code §22050.
b. Consideration and Possible Adoption of a Resolution Ordering Repair of Dilapidated Palace
Hotel Structure, Retention of Cota Cole, LLP, and Initiation of Proceedings Under Health
and Safety Code Section 17980.7 to Establish a Receivership for the Palace Hotel
Property.
12. UNFINISHED BUSINESS
13. NEW BUSINESS
a. Authorize City Manager to Enter into an Amended Dispatch Services Contract with the City
Fort Bragg, for 911 and Dispatching Services.
b. Authorization to Provide a New Designated Period Under the PERS Contract for “Two
Years Additional Service Credit”, Government Code Section 20903, for Parks/Golf
Superintendent Classification.
c. Adoption of Resolution Calling for the Holding of a General Municipal Election to be Held on
November 4, 2014, for the Election of City Council Candidates and any Ballot Measures; to
Consolidate Said Election with the Statewide General Election Held on the Same Date
Pursuant to Elections Code §10403; and Request the County Clerk to Conduct the
Municipal Election of the City of Ukiah on Tuesday, November 4, 2014, Pursuant to
Elections Code §10002.
d. Discussion of Ballot Measure on November 4, 2014 General Election Ballot Extending
Existing ½ Cent Sales Tax (Measure S), Including Draft Ordinance Extending the Existing
Transactions and Use Tax, Draft Resolution Establishing an Expenditure Plan and
Oversight Committee, and Draft Resolution Placing Measure on Ballot.
e. Adoption of Resolution Authorizing the City of Ukiah to Participate in the AB 1513 State
Pilot Program for Control of Squatting in Private Residences.
14. CLOSED SESSION – Closed Session may be held at any time during the meeting
Page 3 of 3
a. Conference With Legal Counsel – Pending Litigation
Initiation of litigation pursuant to Government Code Section 54956.9(c): (1 case)
b. Conference with Legal Counsel – Existing Litigation
(Government Code Section 54956.9(d)(1))
Name of case: Ukiah Valley Sanitation District v. City of Ukiah, Mendocino County Superior
Court Case No. SCUK-CVC-13-63024
c. Conference with Real Property Negotiators_(§54956.8)
Property: APN: 180-070-19-00
Negotiator: Jane Chambers, City Manager
Negotiating Parties: City of Ukiah and RCMC LLC.
Under Negotiation: Price & Terms
15. ADJOURNMENT
Please be advised that the City needs to be notified 72 hours in advance of a meeting if any specific
accommodations or interpreter services are needed in order for you to attend. The City complies with
ADA requirements and will attempt to reasonably accommodate individuals with disabilities upon request.
Materials related to an item on this Agenda submitted to the City Council after distribution of the agenda
packet are available for public inspection at the front counter at the Ukiah Civic Center, 300 Seminary
Avenue, Ukiah, CA 95482, during normal business hours, Monday through Friday, 8:00 am to 5:00 pm.
I hereby certify under penalty of perjury under the laws of the State of California that the foregoing agenda
was posted on the bulletin board at the main entrance of the City of Ukiah City Hall, located at 300
Seminary Avenue, Ukiah, California, not less than 72 hours prior to the meeting set forth on this agenda.
Dated this 30th day of May, 2014.
Kristine Lawler, City Clerk
Agenda Item 5a
Page 1 of 4
CITY OF UKIAH
CITY COUNCIL MINUTES
Continued Meeting from May 7, 2014
CIVIC CENTER COUNCIL CHAMBERS
300 Seminary Avenue
Ukiah, CA 95482
May 28, 2014
6:00 p.m.
1. ROLL CALL
Ukiah City Council met on May 28, 2014, for a continued meeting from May 7, 2014. This
continued meeting having been legally noticed on May 22, 2014. Mayor Pro Tem Thomas called
the meeting to order at 6:02 p.m. Roll was taken with the following Councilmembers Present:
Steve Scalmanini, Douglas F. Crane, and Benj Thomas. Absent by Prearrangement: Mayor Phil
Baldwin and Vice Mayor Mary Anne Landis. Staff Present: Jane Chambers, City Manager; David
Rapport, City Attorney; and Kristine Lawler, City Clerk.
Pro-Tem Mayor Thomas presiding.
2. PLEDGE OF ALLEGIANCE
3. PROCLAMATIONS/INTRODUCTIONS/PRESENTATIONS
a. Presentation by Miles Gordon on Food Action Plan.
Presenter: Miles Gordon, Gardens Project of North Coast Opportunities Community Action
Coordinator.
b. Presentation: Airport Day.
Presenter: Greg Owen, Airport Manager.
4. PETITIONS AND COMMUNICATIONS
5. APPROVAL OF MINUTES
a. Minutes of May 7, 2014, Regular Meeting.
Motion/Second: Crane/Scalmanini to approve the minutes of May 7, 2014, a Regular Meeting, as
submitted. Motion carried by the following roll call votes: AYES: Scalmanini, Crane, and Thomas.
NOES: None. ABSENT: Baldwin and Landis. ABSTAIN: None.
6. RIGHT TO APPEAL DECISION
7. CONSENT CALENDAR
a. Report of Disbursements for the Month of April, 2014 – Finance Department.
b. Adoption of Resolution (2014-19) Approving and Ratifying Amendments to the REMIF Joint
Powers Agreement – Human Resources/Risk Management Department.
City Council Minutes for May 28, 2014, Continued: Page 2 of 4
c. Report to the City Council Regarding Contract Work with Wipf Construction (PO 42699) for
the Installation of Underground Electrical Service Conduit for the Ukiah Municipal Golf
Course Pump House in the Amount of $29,990 – Electric Utilities Department.
d. Award Purchase of PLC and HMI Panel for Standby Power System to Peterson Caterpillar
for the Amount of $45,120.00 – Public Works Department.
e. Award Purchase of Upgrade Software for the Scada System at the Wastewater Treatment
Plant to Wonderware Norcal for the Amount of $20,084.16 – Public Works Department.
f. Consideration and Approval of Retainer Agreement (COU No. 1314-230) with Remy Moose
Manley, LLP for Legal Services in Connection with Talmage/Hwy101 Interchange EIR –
Planning and Community Services Departments.
Motion/Second: Scalmanini/Crane to approve Consent Calendar Items 7a-f, as submitted. Motion
carried by the following roll call votes: AYES: Scalmanini, Crane, and Thomas. NOES: None.
ABSENT: Baldwin and Landis. ABSTAIN: None.
8. AUDIENCE COMMENTS ON NON-AGENDA ITEMS
9. COUNCIL REPORTS
Presenter: Pro Tem Mayor Thomas.
10. CITY MANAGER/CITY CLERK REPORTS
Presenters: Jane Chambers, City Manager; Charlie Stump, Planning and Community Services
Director; and Sage Sangiacomo, Assistant City Manager.
11. PUBLIC HEARINGS (6:15 PM)
a. Adopt a Resolution Determining that an Emergency Exists in the Construction and
Operation of Well #9, the Construction of which will be Necessary to Prevent the
Disruption of Water Services to the Residents of the City of Ukiah, and Directing the City
Manager to Undertake All Steps Necessary to have the Well Constructed without Going
Through a Competitive Bidding Process Pursuant to Public Contract Code §22050.
Presenter: Tim Eriksen, Public Works Director.
Motion/Second: Crane/Scalmanini to continue this item to a date certain of June 4, 2014. Motion
carried by the following roll call votes: AYES: Scalmanini, Crane, and Thomas. NOES: None.
ABSENT: Baldwin and Landis. ABSTAIN: None.
12. UNFINISHED BUSINESS
a. Adoption of Ordinance Amending Division 3, Chapter 7 of the Ukiah City Code by
Adding Letter “O” to Section 3226 (Prohibited Signs), and Amending Letter “A” in, and
Adding Letter “E” to Section 3233 (Non-Conformancy)
Presenter: Charlie Stump, Planning and Community Services Director.
Motion/Second: Crane/Scalmanini to adopt the ordinance amending Division 3, Chapter 7 of the
Ukiah City Code by adding Letter “O” to Section 3226 (Prohibited Signs), and amending letter “A”
in, and adding letter “E” to Section 3233 (Non-Conformancy). Motion carried by the following roll
call votes: AYES: Scalmanini, Crane, and Thomas. NOES: None. ABSENT: Baldwin and Landis.
ABSTAIN: None.
City Council Minutes for May 28, 2014, Continued: Page 3 of 4
ORDINANCE NO. 1148
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF UKIAH AMENDING DIVISION 3,
CHAPTER 7 OF THE UKIAH CITY CODE BY ADDING LETTER “O” TO SECTION 3226
(PROHIBITED SIGNS), AND AMENDING LETTER “A” IN AND ADDING LETTER “E”TO
SECTION 3233 (NON-CONFORMANCY)
13. NEW BUSINESS
a. Designation of Voting Delegate and Alternates for 2014 League of California Cities
Annual Conference – September 3 - 5, 2014 – Administration.
Presenter: Jane Chambers, City Manager.
Motion/Second: Scalmanini/Crane to designate Jane Chambers, City Manager, who will represent
the City of Ukiah for the 2014 League Annual Conference and authorize the City Manager to
submit the Voting Delegate/Alternate Form (Attachment 1) on their behalf. Motion carried by the
following roll call votes: AYES: Scalmanini, Crane, and Thomas. NOES: None. ABSENT: Baldwin
and Landis. ABSTAIN: None.
b. Award of Contract to Carollo Engineers for the Design of Phases 1 and 2 of the
Reclaimed Water System in the Amount of $799,623 and Authorize Staff to Execute an
Amendment for 10% of the Contract Amount if Necessary – Public Works Department.
Presenter: Tim Eriksen, Public Works Director.
Motion/Second: Crane/Scalmanini award a contract (COU No. 1314-231) to Carollo Engineers for
the design of Phase 1 and 2 of the reclaimed water system in the amount of $799,623 and
authorize staff to execute an amendment for 10% of the contract amount if necessary. Motion
carried by the following roll call votes: AYES: Scalmanini, Crane, and Thomas. NOES: None.
ABSENT: Baldwin and Landis. ABSTAIN: None.
c. Informational Oral Update Regarding the Budget – Finance Department.
Presenter: Jane Chambers, City Manager.
COUNCIL ADJOURNED TO CLOSED SESSION AT 7:25 P.M.
14. CLOSED SESSION
a. Conference With Legal Counsel – Pending Litigation
Initiation of litigation pursuant to Government Code Section 54956.9(c): (1 case)
b. Conference with Legal Counsel – Existing Litigation
(Government Code Section 54956.9(d)(1))
Name of case: Ukiah Valley Sanitation District v. City of Ukiah, Mendocino County Superior
Court Case No. SCUK-CVC-13-63024
c. Conference with Real Property Negotiators_(§54956.8)
Property: APN: 180-070-19-00
Negotiator: Jane Chambers, City Manager
Negotiating Parties: City of Ukiah and RCMC LLC.
Under Negotiation: Price & Terms
No action was taken on Closed Session Items.
City Council Minutes for May 28, 2014, Continued: Page 4 of 4
15. ADJOURNMENT
THERE BEING NOTHING FURTHER TO COME BEFORE THE COUNCIL, THE CITY COUNCIL
OF THE CITY OF UKIAH ADJOURNED AT 7:43 P.M.
________________________________
Kristine Lawler, City Clerk
Attachment 1
RESOLUTION NO. 2014-xxXX
RESOLUTION IMPLEMENTING A STATE APPROVED LABOR COMPLIANCE
PROGRAM UPON APPROVAL FROM THE STATE OF CALIFORNIA DEPARTMENT
OF INDUSTRIAL RELATIONS
WHEREAS, the provisions of the California Safe Drinking Water, Water Quality and
Supply, Flood Control, River and Coastal Protection Bond Act of 2006 (Proposition 84)
require the establishment of a Labor Compliance Program (LCP) to monitor the
prevailing wage and apprenticeship requirements on any project using Proposition 84
funding; and
WHEREAS, one of the steps in the procedures to implement Labor Code Section
1771.5 is the adoption by the governing body of the City of Ukiah of a resolution to
implement a state-approved Labor Compliance Program upon approval from the State
of California, Department of Industrial Relations on Projects funded by ‘proposition 84’;
and
WHEREAS, the City of Ukiah is required to submit a Labor Compliance Program
application and procedures manual to the Department of Industrial Relations in order to
implement a Labor Compliance Program for oversight of Prevailing Wage requirements
on ‘Proposition 84’ funded projects.
NOW, THEREFORE, IT IS HEREBY RESOLVED that the governing body of the City of
Ukiah elects to adopt and implement a Labor Compliance Program, as set forth above
PASSED AND ADOPTED this 4th day of June, 2014, by the following roll call vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
__________________________
Philip E. Baldwin, Mayor
ATTEST:
____________________
Kristine Lawler, City Clerk
ATTACHMENT 2
Suggested format of Application to Director for Approval of Awarding Body’s Labor Compliance Program
(8 CCR §16425) Page 1 of 7
Suggested format of
Application to Director for Approval of Awarding Body’s Labor Compliance Program
(8 CCR §16425)
NOTE: If necessary, you may attach additional sheets.
The Director may ask for additional documentation as to any information provided or any other information that may have a bearing
on your ability to do labor compliance enforcement.
Awarding Body Seeking Approval:
City of Ukiah
300 Seminary Ave, Ukiah, CA 95482
Awarding Body’s Contact Person(s):
Sherrie Smith-Ferri
431 South Main Street, Ukiah, CA 95482
Phone: 707-467-2836
Fax: 707-467-2835
Email: ssmithferri@cityofukiah.com
Katie Marsolan
431 South Main Street, Ukiah, CA 95482
Phone: 707-467-2836
Fax: 707-467-2835
Email: kmarsolan@cityofukiah.com
A. Identify the individuals who will be enforcing the Labor Compliance Program (LCP). (Note: If using outside consultants or an approved third party contract provider, identify the awarding body personnel
who will monitor or supervise the outside work as well as the individuals and affiliations of the individuals who will
perform the enforcement work.)
Awarding Body Personnel
Sherrie Smith-Ferri is the Director of the Grace Hudson Museum in the City of Ukiah where the
‘Proposition 84’ funded project work will take place. Sherrie has been with the City of Ukiah’s
Grace Hudson Museum for 16 years. Sherrie will be working alongside Katie to form the City of
Ukiah’s Project Management team.
Katie Marsolan is the Project Manager with the City of Ukiah’s Department of Community
Services. Katie has worked for the department for 6 years, with prior experience in project
management on public works projects.
While Katie and Sherrie’s experience in prevailing wage enforcement is limited, the City will be
using the Labor Compliance expertise of C. Kell-Smith & Associates for day to day Labor
compliance oversight.
ATTACHMENT 2
Suggested format of Application to Director for Approval of Awarding Body’s Labor Compliance Program
(8 CCR §16425) Page 2 of 7
Name and Title of Personnel Who Will Perform the Enforcement Work
C. Kell-Smith & Associates, Inc. (CKSA)
CKSA’s staff has 28 years of experience in providing Labor Compliance Management Services to
multiple clients. Carla Kell-Smith, Roberto F Lujan, and John McAndrews have been assigned to
oversee the City of Ukiah’s Labor Compliance Program. Carla, Roberto, and John all have extensive
experience in, and have been involved in the entire labor compliance process, to ensure that all public
works contractors comply with, and follow the prevailing wage requirements of the labor code.
CKSA’s labor compliance services include, but are not limited to:
Pre-Construction Services
• Development of ‘labor compliance procedures manual’ in accordance with the requirements of
the Department of Industrial Relations. This is a comprehensive outline that includes the
applicable California labor code sections and sections applicable to LCPs found in Title 8 of
the California code of regulations and the forms that will be used by the labor compliance
program
• Review of labor compliance submittal documentation, i.e. ensuring proper contractor and
subcontractor business licenses, and insurance etc.
• Providing up-to-date regional prevailing wage details, which will include job classifications,
wage rates, overtime rates, computations, deductions and fringe benefits (in compliance with
the DSLR)
• Providing the pre-work checklist of labor compliance requirements, and discussing this with
the contractor at the pre-construction meeting
• Attendance at the pre-construction conference to discuss the applicable State and Federal
labor law requirements. This will include a checklist of requirements that CKSA will prepare
prior to the meeting
• Set up of a software program to track labor compliance and certified payroll. This includes
entering the applicable prevailing wages, contract and contractor information, etc.
Construction Services
• Labor compliance review and reporting
• Reviewing certified payroll records and providing a statement of compliance
• Prepare labor compliance questionnaire, and Interviewing contractors staff and workers to
ensure prevailing wage rates meet requirements, ensuring employees are receiving payments on
ATTACHMENT 2
Suggested format of Application to Director for Approval of Awarding Body’s Labor Compliance Program
(8 CCR §16425) Page 3 of 7
time, and gather any complaints the employees may have regarding discrimination or if any
kickback has been requested
• Ensuring that all labor compliance notices are posted at the job site and all employees are
aware of their companies’ equal employment opportunity officer
• Development and issuance of labor compliance reports for each contractor on the project
• Notification to the contractor and / or sub-contractor of violations found during audit, giving
the contractor an opportunity to resolve the issue prior to contacting the Labor Commissioner
• Entering information into a master labor compliance software program of the City of Ukiah’s
choice
• Providing an annual report to the Office Of The Director on behalf of the City of Ukiah
Closeout Services
• Providing all certified payroll records to the City of Ukiah, along with labor compliance
questionnaires that were answered by the contractor and sub-contractor employees during the
construction
The Following team members will be assigned to oversee and enforce the City of Ukiah’s Labor
compliance program.
Carla Kell-Smith; Principal
Roberto F. Lujan; Senior Associate
John McAndrews; Project Manager
1. Carla Kell-Smith
Principal
Experience/training on public works/labor compliance issues (Please provide specific dates, details and
examples of public works prevailing wage rate enforcement activities, including whether such experience involve
federal, state, or local law. In addition, please include private sector experience on behalf of unions or contractors or
on a joint labor management committee pursuant to the federal Labor Management Cooperation Act of 1978 (29
U.S.C. section 175a). Furthermore, please include participation in any public works enforcement training provided by
the Division of Labor Standards Enforcement (DLSE)):
28 Years of Experience in State of California and Federal Prevailing Wage and Labor Compliance
* City of San Bruno (1986-2008), Aircraft Noise Insulation Program, 17 Construction Projects
* City of Daly City (1994-2005), Aircraft Noise Soundproofing Project, 8 Construction Projects
* City of Pacifica (1990-2006), Aircraft Noise Insulation Program, 6 Construction Phases
* City of San Leandro (2004-Present), Residential Airport Noise Insulation Program, 3
Construction Phases
* County of San Mateo (1991-2007), Noise Insulation Program, 3 Construction Phases
ATTACHMENT 2
Suggested format of Application to Director for Approval of Awarding Body’s Labor Compliance Program
(8 CCR §16425) Page 4 of 7
* San Francisco International Airport (2008-Present), Noise Insulation Program, 2 Construction
Phases
* Palm Springs International Airport (1996-2005), Residential Sound Insulation Program, 4
Construction Phases
* Oakland International Airport (1994-2006), Aircraft Sound Insulation Program, 7
Construction Phases
* Reno/Tahoe International Airport (1995-Present), Sound Insulation Project, 51 Construction
Phases
2. Roberto Lujan
Senior Associate
Experience/training on public works/labor compliance issues (Please provide specific dates, details and
examples of public works prevailing wage rate enforcement activities, including whether such experience involve
federal, state, or local law. In addition, please include private sector experience on behalf of unions or contractors or
on a joint labor management committee pursuant to the federal Labor Management Cooperation Act of 1978 (29
U.S.C. section 175a). Furthermore, please include participation in any public works enforcement training provided by
the Division of Labor Standards Enforcement (DLSE)):
* City of San Leandro (2009-Present), Residential Airport Noise Insulation Program, 1
Construction Phases
* San Francisco International Airport (2009-Present), Noise Insulation Program, 2 Construction
Phases
* Reno/Tahoe International Airport (2009-Present), Sound Insulation Project, 25 Construction
Phases
All projects have required enforcement of Labor Compliance / Davis Bacon Prevailing Wage
requirements – Roberto has been involved in certified payroll review and reporting, labor
compliance reporting and resolution, onsite employee interviews and verifications to ensure
correct worker classifications / pay rates etc.
3. John McAndrews
Project Manager
Experience/training on public works/labor compliance issues (Please provide specific dates, details and
examples of public works prevailing wage rate enforcement activities, including whether such experience involve
federal, state, or local law. In addition, please include private sector experience on behalf of unions or contractors or
on a joint labor management committee pursuant to the federal Labor Management Cooperation Act of 1978 (29
U.S.C. section 175a). Furthermore, please include participation in any public works enforcement training provided by
the Division of Labor Standards Enforcement (DLSE)):
* City of San Leandro (2011-Present), Residential Airport Noise Insulation Program, 1
Construction Phases
* San Francisco International Airport (2011-Present), Noise Insulation Program, 2 Construction
Phases
* Reno/Tahoe International Airport (2011-Present), Sound Insulation Project, 11 Construction
Phases
ATTACHMENT 2
Suggested format of Application to Director for Approval of Awarding Body’s Labor Compliance Program
(8 CCR §16425) Page 5 of 7
All projects have required enforcement of Labor Compliance / Davis Bacon Prevailing Wage
requirements – John has been involved in certified payroll review and reporting, labor compliance
reporting and resolution, onsite employee interviews and verifications to ensure correct worker
classifications / pay rates etc.
B. State the average number of public work projects the awarding body annually administers:
40-50
C. State whether the proposed LCP is a joint or cooperative venture among awarding bodies; and, if
so, how the resources and expanded responsibilities of the LCP compare to the awarding bodies
involved:
It is not a joint or cooperative venture
D. Describe the awarding body’s record of taking cognizance of Labor Code violations in the
preceding five years, including any withholding of funds from public works contractors pursuant
to LC 1726.
The City requires the payment of prevailing wages on all publically funded projects over $1,000.
The City reviews certified payrolls to ensure compliance with prevailing wage requirements, and
checks that worker classifications are in line with the role that each individual performs on the
project. If labor compliance / payment violations are found, the city follows the procedures
outlined in the attached LCP manual, to enforce corrective action.
E. Identify the attorney or law firm available to provide legal support for the LCP, including handling
of the LCP’s responsibilities during the administrative review process set forth in Labor Code
Section 1771.6.
David Rapport, City Attorney
405 W Perkins Street, Ukiah, CA 95482
Phone: (707) 462-6846
See attached resume
Specific experience with prevailing wage compliance:
1. Draft and revise public works contracts for City of Ukiah, specifically including labor
compliance
2. Advise City of Ukiah on prevailing wage requirements
3. Munoz v. Petrini Van & Storage, Sacramento Superior Court (2005) [alleging failure to pay
prevailing wage]
F. Identify the method by which the LCP will notify the Labor Commissioner of willful violations as
defined in Labor Code Section 1777.1(d):
Via mail and phone – See attached LCP Manual
ATTACHMENT 2
Suggested format of Application to Director for Approval of Awarding Body’s Labor Compliance Program
(8 CCR §16425) Page 6 of 7
G. Indicate whether the Awarding Body has established its own Labor Compliance Program in
accordance with the requirements of Labor Code Section 1771.5(b) and subchapter 4 of
chapter 8 of Title 8 of California Code of Regulations or has contracted with a third party that has
been approved by the Director to operate a Labor Compliance Program in accordance with the
requirements of Labor Code Section 1771.5(b) and subchapter 4 of chapter 8 of Title 8 of
California Code of Regulations. If the Awarding Body has contracted with one or more persons
or entities to operate all or any part of the Awarding Body’s Labor Compliance Program, please
identify (name, address, telephone, and principal contact) all of those persons or entities.
The City has elected to adopt a third party labor compliance program that will be administered by
C. Kell-Smith & Associates. C. Kell-Smith & Associates have 28 years of experience overseeing
and enforcing labor compliance and prevailing wage requirements on State and Federal funded
projects. C. Kell-Smith & Associates contact details are as follows:
Carla Kell-Smith (Principal)
C. Kell-Smith & Associates
1250 Bayhill Drive Suite 370
San Bruno, CA 94066
Phone: 650-827-3900
Fax: 650-827-3909
Email: carlas@kell-smith.com
H. Indicate whether the Awarding Body intends to enforce labor compliance on all of its public
works projects (i.e., not limited to projects that are funded by bonds or other statutes that require
the Awarding Body to have an LCP as a condition of funding). If not, please indicate the kinds of
projects on which you intend to enforce labor compliance and whether you are required to have a
labor compliance program as a condition for obtaining funding for the project or projects.
Prevailing wage requirements are required and enforced for all of our public works projects
The City does, and will continue to follow LCP procedures on all public works projects. The city
only seeks LCP approval for ‘Proposition 84’ funded projects.
I. Attach a copy of the Awarding Body’s resolution adopting the LCP and, if applicable, any other
resolution approving any contracts with persons or entities identified in G above.
See Attached
J. Attach the proposed manual outlining the responsibilities and procedures of the LCP.
See Attached
ATTACHMENT 2
Suggested format of Application to Director for Approval of Awarding Body’s Labor Compliance Program
(8 CCR §16425) Page 7 of 7
___________________________________ ___________________________
Awarding Body’s Representative Date Signed
Name and Signature
Mail two copies of this form and attachments to:
OFFICE OF THE DIRECTOR
DEPARTMENT OF INDUSTRIAL RELATIONS
1515 CLAY STREET, 6TH FLOOR
OAKLAND, CA 94612
510-622-2866
ATTENTION: EXECUTIVE ASSISTANT TO THE DIRECTOR
Labor Compliance Program
Procedures Manual
City of Ukiah
‘Proposition 84’ Project
May 2014
Administered by C. Kell-Smith & Associates, Inc
CITY OF UKIAH
LABOR COMPLIANCE PROGRAM
PROCEDURES MANUAL
I
5/14/14 Table of Contents
1 Introduction .................................................................................................................................................................... 1
2 Labor Compliance Program (LCP) ...................................................................................................................... 2
2.1 Statutes and Applicability
2.2 Overview of LCP Regulations
3 Achieving Labor Compliance .................................................................................................................................. 4
4 Roles and Responsibilities ...................................................................................................................................... 5
4.1 Labor Compliance Officer (LCO): General Responsibilities
4.2 Contractor’s Responsibilities
5 Pre-Construction Activities ..................................................................................................................................... 7
5.1 Providing Bid Language to Awarding Bodies Prior to Bid
5.2 Pre-Bid Meeting – Notify Bidders of LCP Requirements
5.3 Project Start-Up Activities
5.4 Pre-Construction Meeting Agenda / Discussion Format
5.5 LCP Forms the Contractors Is Required to Submit
6 DAS Requirements .................................................................................................................................................... 14
6.1 LCP Duties Regarding Apprentices
6.2 Prevailing Wage for Apprentices
6.3 Apprentice Usage Requirements
7 Delinquent Payroll Records and Withholding Process ......................................................................... 19
7.1 Delinquent Document Withholding Process
8 Document Review Process ................................................................................................................................... 20
8.1 Reviewing Certified Payroll Reports
8.2 Essential Information on Certified Payroll Reports
8.3 Reviewing and Inspecting Certified Payroll Reports
8.4 Determining Prevailing Wage Rates
8.5 Other Documents to Review
9 Auditing Process ........................................................................................................................................................ 28
9.1 Audit Certified Payroll Records
9.2 Audit Trust Fund Reports
9.3 Audit Letter
9.4 Audit Worksheet
9.5 Prevailing Wage Determination Summary
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9.6 Public Works Investigation Worksheet
9.7 Public Works Audit Worksheet
10 Field Monitoring ...................................................................................................................................................... 44
10.1 Content of Employee Interviews
10.2 Conducting On-Site Interviews
10.3 Jobsite Notices and Postings
10.4 Field Investigation Notes
11 Worker Complaints ............................................................................................................................................... 49
11.1 Third Party Complaints
12 Audit Findings and Results ................................................................................................................................ 52
12.1 Wage Violations
12.2 Preparing a Determination
12.3 Case Preparation
13 Notification ................................................................................................................................................................ 55
13.1 Notification to Third Party Agencies Regarding Requests for Documentation
13.2 Public Payroll Records Requests
14 N/A.................................................................................................................................................................................. 59
15 Issue Resolution and Restitution Payments ............................................................................................. 60
15.1 Restitution Check Payment
15.2 Contractor Submits Mitigating Evidence
15.3 Non-Responsive Contractor / Three Letter Rule
15.4 Issue Follow-Up
15.5 Issue Closeout
16 Settlement Authority ............................................................................................................................................ 63
17 Assessment Process .............................................................................................................................................. 64
17.1 Labor Commissioner Assessment and Review of Assessment Process
17.2 Civil Proceedings and Request for Review Processes
17.2.1 Preparing a Request for Review of Forfeitures
17.2.2 Requesting a Review of Forfeitures from the Labor Commissioner
17.2.3 Request for Forfeiture
17.2.4 Notice of Withholding of Contract Payments
17.2.5 Contractor Appeal Rights
17.2.6 Hearings/Civil Proceedings
17.3 Conditions in Which the Contracting Agency May Withhold Payments
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17.4 Payments to be withheld or Forfeitures to be imposed by the City of Ukiah
17.5 Determining Amount of Forfeiture by the Labor Commissioner
17.6 Forfeitures Requiring Approval by the Labor Commissioner
17.7 Penalties Imposed by the Labor Commissioner
17.8 Deposits of Penalties and Forfeitures Withheld
18 Project Closeout....................................................................................................................................................... 80
18.1 Final Payroll
18.2 Public Works Affidavit
18.3 Request for Authorization to Release Final Payment
18.4 Closeout Checklist
19 Reporting and Monitoring Activities ............................................................................................................ 82
19.1 Labor Compliance Review & Enforcement Reports
19.2 Annual Reports
20 Project Files – LCP Document Controls ....................................................................................................... 83
20.1 Electronic Project Tracking Log
20.2 Audit File System
21 Document Confidentiality and Security ...................................................................................................... 86
22 Terms and Definitions ......................................................................................................................................... 87
23 Forms ...............................................................................................................................................................Attached
Pre-Construction Conference Review Checklist
Public Works Investigation Worksheet
Public Works Audit Worksheet
Prevailing Wage Determination Summary
Labor Compliance Site Interview Form
DAS140 – Public Works Contract Award Information
DAS142 – Apprentice Request Form
DAS1BC – Apprentice Agreement
CAC-2 Training Fund Contribution Form
PW1 -Worker Complaint Forms
Notice of Temporary Withholding of Contract Payments due to Delinquent or Inadequate Payroll
Records
LCP Request for Approval of Forfeiture
Labor Compliance Review & Enforcement Report Form
Notice of Transmittal
Notice of Opportunity to Review Evidence
LCP-AR1 - Annual Report Reporting Forms
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DIR-PWC 100 – Public Works Contract Award Form
Public Works Payroll Reporting Form
Notice of Withholding Contractor Payments
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1. Introduction
The purpose of this manual is to provide the City of Ukiah with guidelines for the review of
a contractor’s compliance with the California Labor Code for Proposition 84 projects
administered on behalf of the City of Ukiah. The California Labor Code requires that
workers employed by contractors or subcontractors, in the execution of public works
contracts, must be paid the state-determined prevailing wage. In most cases, public works
projects are subject to compliance with the California Labor Code requirements.
Proposition 84 funded projects (Prop 84) require a Labor Compliance Program (LCP) to
monitor and enforce the requirements of the California Labor Code efficiently, as well as to
handle the processing, investigation and resolution of violations.
Section 1720 of the California Labor Code defines public works as any preconstruction or
construction activity, including alteration, demolition, repair or maintenance work, paid for
in whole or in part by public funds. Section 1771establishes the minimum requirements for
payment of prevailing wages and the requirements of a Labor Compliance Program. The
Division of Labor Standards Enforcement (DLSE), a body of the California Department of
Industrial Relations (DIR), is the government agency primarily responsible for the
enforcement of prevailing wage requirements on California public works projects.
This manual was prepared to facilitate conformity with the requirements of the applicable
labor code sections. The information included herein should be intended as a framework
for implementation of an effective LCP for projects funded by Proposition 84, designed to
enforce and monitor prevailing wage requirements consistent with the practice of the
DLSE.
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2. Labor Compliance program (LCP)
2.1 Statutes and Applicability
The California Labor Code §1771.7 identifies certain public works projects that require an
Awarding Body to adopt and enforce, or contract with a third party to adopt and enforce, a
Labor Compliance Program (LCP) as a condition of project authorization, project funding,
or use of specified contracting authority. A comprehensive list of statutes that require
Awarding Bodies to have a LCP is maintained on the Department of Industrial Relations
(DIR)’s website.
A comprehensive list of the laws and regulations governing Labor Compliance
Programs can be found in:
• California Labor Code (§1720 - 1743, §1750, §§1770 - 1781, §§1810 -
1885, §§1860 - 1861)
• Title 8, California Code of Regulations, Chapter 8
• Subchapter 3. Payment of Prevailing Wages upon Public Works (Sections
16000 - 16404)
• Subchapter 4. Awarding Body Labor Compliance Programs (Sections
16421 - 16802)
• Subchapter 6. Prevailing Wage Hearings (Sections 17201 – 17270)
These sections can be found on the Department of Industrial Relations website at
http://www.dir.ca.gov/lcp/LCPLawsRegs.htm.
A listing of approved Agency labor compliance programs is available at
http://www.dir.ca.gov/lcp/LCPTypes.htm.
2.2 Overview of LCP Regulations
A Labor Compliance Program is designed to fulfill the requirements of the Labor Code; to
keep all parties informed of their obligations; and to monitor and enforce prevailing wage
requirements. Labor Code §1771.5 and California Code of Regulations, Title 8,§16421
outline the necessary components of a labor compliance program. These components are
outlined below:
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Bid invitations and other documents: Appropriate language should be included in
all bid invitations and public works contracts (e.g. Request for Proposal, Design-
Build Request, and the contract or purchase order). Refer to Section 5 of this manual.
Pre-job conference: A pre-job conference must be held, during which applicable
federal and state labor law requirements are discussed, copies of suggested
reporting forms are furnished, and a checklist showing which laws were discussed
are kept. Refer to Section 5 of this manual.
Certified Payroll Reports (CPRs): Certified Payroll Reports containing a statement
of compliance signed under penalty of perjury is required to be kept by the
contractor and furnished to the City of Ukiah at times designated in the contract (at
least monthly) or within 10 days of request. Refer to Section 8.1 for information on
reviewing CPRs.
Records Review: The LCP must have a program for orderly review of payroll
records and, if necessary, for audits to verify compliance with the labor code. Refer
to Section 8 of this manual for information on reviewing CPRs.
Enforcing Compliance: Reasonable, vigorous, and prompt action to (a) determine
whether violations exist, and (b) enforce compliance, including through imposition
of appropriate penalties and formal enforcement action, must be taken when
violations are found. A Labor Compliance Program shall neither avoid use of its
enforcement authority based on cost considerations nor shall it use that authority in
an unreasonable manner to gain leverage over a contractor or subcontractor.
Unreasonable use of enforcement authority includes, but is not necessarily limited
to, prolonged or excessive withholdings of contract payments without making a
determination that a violation has occurred.
Withholding payments: The LCP must have a prescribed routine for withholding
penalties, forfeitures, and underpayment of wages for labor code violations (e.g.
delinquent or inadequate payroll records). Refer to Section 17.4 of this manual.
Provision for withholding payments: Contracts must contain a provision that
contract payments shall not be made when payroll records are delinquent or
inadequate.
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3. Achieving Labor Compliance
Early detection and surveillance of labor compliance violations is preferable to conducting
belated investigations and implementing formal enforcement actions. Toward that end,
labor compliance issues must be brought to the attention of the contractor immediately
upon detection. Minor issues, such as clerical errors or inadvertent acts, should be resolved
at the project level. By building relationships with contractors that encourage open
communication and by providing them with information in jargon-free, layman
terminology, misunderstandings and confusion can be avoided throughout the project. If
issues do arise, technical support can be offered throughout the duration of the project.
A main benefit of a commitment to clear, proactive communication between all parties, is
that we are able to focus on efficiently identifying and resolving issues at the lowest
possible level, thereby eliminating costly construction disruptions.
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4. Roles and Responsibilities
The Labor Compliance Officer (LCO) of the City of Ukiah and the Contractor have specific
responsibilities, described below.
4.1 Labor Compliance Officer (LCO) – General Responsibilities
The LCO or his/her designee assigned to the project is responsible for obtaining and
maintaining the prevailing wage determination, which are maintained in the project files;
maintaining and preserving the confidentiality of personnel information, payroll records,
and other records; as well as furnishing this information to appropriate parties on request.
It is also the LCO’s responsibility to be cognizant of and actively enforce the clarifications,
modifications, and exceptions to the Labor Code and the Code of Regulations by
periodically reviewing Important Notices, Interim Determinations, Precedential Decisions
and Opinion Letters (per California Code of Regulations §16434).
The Labor Compliance Officer, or his or her designee, is empowered to perform, among
other enforcement duties, the following activities:
Ensure that labor compliance requirements are discussed at the preconstruction
conference.
Conduct payroll audits to confirm that wage rates and hours listed on contractor
CPRs match prevailing wage rates and hours, and that correct benefit amounts are
paid for all project hours.
Interview employees of contractors and subcontractors.
Verify that required posters are displayed at jobsites
Verification of payments by randomly selecting one employee per subcontractor each month to verify that
payment was made to the worker as represented.
Issue appropriate notices for withholding of contract payments when the LCO
determines that a contractor is in breach of labor compliance requirements.
Collect and disburse wages and penalties when it is found that an under payment
has occurred.
Obtain approval of recommended forfeitures from the Labor Commissioner.
Conduct investigations, often in coordination with outside enforcement agencies, in
response to delinquent certified payrolls or worker complaints.
Request a contractor's debarment or dismissal for willful, flagrant, or repeated
violations.
Ensure that all contractors are in compliance with worker’s compensation
requirements and hold valid contractor’s licenses.
Collect and verify subcontractor lists from the prime contractor; and collect and
verify 3rd tier contractor lists from subcontractors.
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Defend notice of withholding of contract payments in administrative review
proceedings and in court.
4.2 Contractor’s Responsibilities
According to the California Labor Code and the California Code of Regulations, contractors
working on public works projects are responsible for fulfilling the following:
Duty to Cooperate with Monitoring by the Labor Compliance Officer: The contractor
must cooperate with representatives of the project in support of their
responsibilities.
Duty to Secure Eligibility/Citizenship from Workers: Contractors must not hire
undocumented workers. They must complete an Employment Eligibility form (I-9)
for everyone they hire [Federal contractors can comply using E verify].
Duty to Cooperate with On-Site Interviews: The contractor must allow
representatives of the LCP to interview employees without interference.
Interviewed employees must not be threatened, intimidated, or coerced.
Duty Not to Retaliate: The Contractor agrees that no worker will be discharged,
disciplined, or in any other manner discriminated against because he or she has
made a complaint against his employer, has filed a governmental complaint, has
instituted or caused to be instituted any proceeding, or has testified or is about to
testify in any proceeding.
Duty to Submit Labor Compliance Reports: The contractor must submit labor
compliance reports throughout the course of this project.
Duty to Cooperate with Regard to Subcontractors: Each contractor is responsible for
compliance by his subcontractors. The project’s Construction Manager/Project
Manager and Labor Compliance Officer may direct the contractor to take certain
actions to remedy subcontractor compliance issues.
Duty to Comply with All Applicable Laws: It is against the law for an employer or
other person to accept any compensation from workers on a prevailing wage
project. Anyone found guilty of accepting fees, bribes or any other form of
compensation or kickbacks from a worker on a prevailing wage project is guilty of a
felony (per California Labor Code Section 1778). Any person or company that
attempts to charge a fee for registration or information about public works
employment is guilty of a misdemeanor.
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5. Pre-Construction Activities
5.1 Providing Bid Language to Awarding Bodies Prior to Bid
Prior to the release and advertisement of the bid documents, staff should be aware of the
appropriate language concerning the requirements of prevailing wage projects as defined
by the California Labor Code §1773.2.
The Call for Bids, Design-Build Requests, and the contract or purchase orders should
contain at minimum the following language:
Identification that the project is subject to the payment of prevailing wages
Identification of the project as either a project for construction, installation,
alteration, demolition, repair, or maintenance work;
Provision that contract payments shall not be made when payroll records are
delinquent or inadequate per CCR Section 16421(a) (6).
Include notification that all contractors must comply with the LCP.
The City of Ukiah must notify the contractor in writing that the work to be covered by the
contract or bid is a public works project, as defined by the California Labor Code, subject to
the payment of prevailing wages to all workers. If this is not done, and prevailing wage
underpayments are found, staff risks a contractor’s court action to recoup monetary
liabilities for the difference between the actual wages paid and the prevailing wages that
were required to be paid.
All bid advertisements (or bid invitations) and public works contracts requiring
LCP compliance shall contain appropriate language concerning the requirements of the
Public Works chapter of the Labor Code similar to the sample language listed below:
‘This project is subject to the requirements of Section 1770 et seq. of the California Labor Code
requiring the payment of prevailing wages, the training of apprentices and compliance with
other applicable requirements. The City of Ukiah has on file at ‘300 Seminary Ave, Ukiah, CA
95482’ copies of the prevailing rate of per diem wages to be paid to all applicable workers. The
prevailing wage rate determinations on file with the City of Ukiah shall be made available to
all interested parties upon reasonable request during normal business hours. Additionally, a
copy of the prevailing wage determinations shall be available at each job site. Prevailing wage
information may also be obtained via the internet at: www.dir.ca.gov. The City of Ukiah has
instituted a Labor Compliance Program (LCP) and all contractors who perform work on
projects covered by the LCP with this awarding body will be subject to the terms of that LCP.’
‘As a condition to receiving progress payments, final payment and payment of retention on any
and all projects on which the payment of prevailing wages is required, the contractor agrees to
present to the City of Ukiah, along with its request for payment, all applicable and necessary
certified payrolls and other required documents for the time period covering such payment
request. The City of Ukiah shall withhold any portion of a payment, including the entire
payment amount, until certified payroll forms and other required LCP documents are properly
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submitted. In the event that certified payroll forms do not comply with the requirements of
Labor Code Section 1720 et seq., or wage violations are identified by the City of Ukiah, the City
may continue to hold sufficient funds to cover estimated wages and penalties under the
contract.’
The City of Ukiah must also notify contractors of the applicable / current prevailing wage
determination; for prevailing wage calculation, see section 8.4 of this manual.
5.2 Pre-Bid Meeting – Notify Bidders of LCP Requirements
Prior to the commencement of any construction project, a pre-bid meeting will be held. At
the meeting, contractors are informed of the prevailing wage requirements and applicable
prevailing wage determination to be used on the bid. Staff will take this opportunity to both
build a rapport with the contractors and subcontractors as well as create a solid foundation
of information for the contractors and subcontractors. This is the first, project-level step
towards early problem resolution.
Prior to the pre-bid meeting, a copy of the Bid Advertisement for the project must be
obtained, since the advertisement date determines which prevailing wage determinations
are applicable.
The pre-bid conference will be held by the City of Ukiah following the advertisement date
and before the bid due date. At this time the bid requirements are disclosed to prospective
contractors. Such items disclosed typically include the engineers’ estimate, security amount,
number of days calculated for the project, any allowances, and work hours. At this meeting,
it must be disclosed that the project is subject to a labor compliance program.
Upon notification of an upcoming Pre-Bid Meeting, staff shall prepare a Pre-Bid Meeting
Handout. The Pre-Bid Meeting Handout shall include the following information:
Notice that the project is a public works project subject to California prevailing wage
laws
The City of Ukiah has implemented a Labor Compliance Program (LCP)
All contractors shall pay prevailing wages according the Department of Industrial
Relations (DIR) determination applicable to that project
All apprentices shall be registered in an approved apprenticeship program
Clearly identify the applicable DIR determination and include a website link to obtain
the prevailing wage rates for the project
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All questions pertaining to the LCP shall be directed to the City of Ukiah staff
assigned to the project.
5.3 Project Start-Up Activities
Upon award of the selected bid for a project, and prior to the Pre-Construction Meeting, the
City of Ukiah staff shall conduct the following project start-up activities:
Obtain Sub-Lists - An accurate and complete subcontractor list shall be requested
from the prime contractor(s) or from the list submitted with the winning bid. The
sub-list shall be used to determine contractor eligibility to work on the public works
project (via CSLB verification described below) and for determining the number of
LCP Pre-Con packets to prepare for the Pre-Construction Meeting.
CSLB verification activities - Once a project has been awarded, the staff assigned to
the project must first ensure that all contractors and subcontractors are eligible to
work on a public works project. Visit the CSLB website
(http://www2.cslb.ca.gov/OnlineServices/CheckLicense/LicenseRequest.asp) to
check the status of the contractors’ / workers’ compensation insurance and license,
printing the documentation, and adding it to the “Contractor Contact Information”
portion of the contractor’s file. Immediately notify the project’s construction
manager of any contractors whose license status or workers’ comp insurance is
inactive.
Obtain Bid Amounts & Project Duration -Obtain the actual project value (i.e. bid
amount) and project duration for the project. Document this information on the
Project Award Information Sheet and on the Master Project Management Tracking
Sheet.
Create a Document Tracking Log -A Document Tracking Log shall be maintained
for this project. The Document Tracking Log is a written record of all LCP-required
documents that are submitted and missing for all project contractors. It also
identifies whether a contractor has any compliance issues or unresolved audits.
Submit a PW-100 form to the DIR - Obtain all necessary information at the pre-
construction meeting and submit the PW-100 to the DIR within 5 days of contract
award.
5.4 Pre-Construction Meeting Agenda / Discussion Format
The pre-construction meeting is held by the City of Ukiah before commencement of the
work for contractors and subcontractors with accepted bids. The pre-construction meeting
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will be structured to facilitate a discussion of the responsibilities of the contractor and
subcontractors regarding the labor compliance program; all subcontractors should attend.
Prior to the meeting, Pre-Construction Meeting Packets shall be prepared. Each required
LCP form should include the City of Ukiah logo. The Pre-Construction Meeting Packets shall
include the following:
DIR Determination Sheet, contains:
o The DIR determination applicable to the project
o The DIR determination website link
‘LCP Contractor Responsibilities & Requirements’ summary sheet
LCP Sample Forms
o State that the sample LCP forms may be substituted by the contractor’s own
forms so long as the same required information is included
o Included in the sample forms is the ‘LCP Checklist of Labor Law
Requirements’
Document Submittal Protocol Sheet: Informs the contractor of the appropriate
person to which required documentation should be submitted; also summarizes the
City of Ukiah’s progress payment policies, such as the penalties for non-compliance,
including the withholding of contract payments when payroll records are delinquent
or inadequate. May also outline the process by which the LCP staff will provide the
management team with a monthly progress payment recommendation based on the
contractor’s LCP compliance status (including both timely documentation and timely
resolution of issues).
Sample posting for jobsite notifying workers of Labor Compliance contact for the
project
Information on how to receive a copy of the Labor Code relating to Public Works and
Public Agencies (Part 7, Chapter 1, Sections 1720-1861)
The pre-construction meeting shall include the following information:
This is a public works project. This project is funded by the Proposition 84 and
therefore requires LCP oversight.
All workers must be paid prevailing wages as required by the LCP and established
prevailing wage laws
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The City of Ukiah has implemented and will enforce a LCP. LCP staff will be
monitoring and enforcing prevailing wage compliance on this project.
An attendance sheet should be distributed at the meeting; retain a copy of the
attendance sheet for cross-referencing against the contractor’s sub list. When
referencing the sub-list for the project, note any contractors that are not present for
the pre-con meeting as the pre-construction meeting packets will be mailed to any
contractors that were not in attendance. If the sub-list is not available at the time of
the preconstruction meeting, send LCP packets to all remaining contractors once it is
obtained. Provide additional copies of the preconstruction information to the prime
contractor, charging the prime contractor with the responsibility to distribute this
information to all later acquired subcontractors and subtier subcontractors.
Attendees will introduce themselves, and state their trade or the role they will
perform on the project. For each contractor that is present at the meeting, obtain the
contact name for the individual(s) that handle CPR preparation and submittal and
labor compliance issues for the contractor. Obtain copies of business cards and
indicate the CPR contact person’s name upon each card for entering into the tracking
log once back in the office.
Staff will then distribute the pre-con meeting packets containing the Department of
Industrial Relations (DIR) determination website link, a copy of applicable labor
compliance responsibilities and requirements, a document submittal schedule, and
blanks/samples of the required LCP submittal forms.
Staff will then provide an overview of the Labor Compliance Program (LCP)
requirements, including the responsibilities of the contractor and monitoring and
enforcement compliance activities. Staff will then review the contents of the pre-con
meeting packets, using the cover sheet as a guide to conduct the remainder of the
meeting.
When reviewing the packet, the following contractor responsibilities should be
discussed during the most appropriate portion of the agenda:
1. To submit a DAS-140 (Public Works Contract Award Information) to notify the
Applicable Apprenticeship program(s)(10 days after the contract is signed but
not later than the first day work is started by the particular contractor /
subcontractor on the jobsite) when using apprentice able trades on a public
works project and to submit certification of apprentices.
To be submitted within 10 days after the awarded contract has been signed,
and no later than the start of work
Should be sent to the local apprenticeship committee
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contractors who are approved to train apprentices must send the DAS 140
form to their apprenticeship committee
contractors who are not approved to train apprentices but are willing to be
affiliated with an apprenticeship program for the length of the project (box 2)
must send the DAS 140 to the applicable apprenticeship committee with
whom they are willing to be affiliated.
contractors who are not approved to train apprentices must send the DAS 140
form to all applicable apprenticeship committees in their geographic region
(contact information which can be obtained from the DAS website)
2. To submit all required reports: Certified Payroll Reports, Trust Fund Reports, and
any other reports that verify the payment of prevailing wages. Certified payroll
records shall be furnished by the contractor at times designated in the contract,
which shall be at least monthly, or within 10 days of any request.
3. To submit evidence that training fund contributions were paid to the California
Apprenticeship Council or to an approved fund (such as a union trust fund).
Contractors that pay training funds to the California Apprenticeship Council
must submit a Training Fund Contributions form (CAC-2) each month
covering every craft and every hour worked in that craft, for all apprentice-
able crafts. (CAC contributions are due by the 15th of the month following the
month in which work was performed) Contractors who pay to other approved
funds must submit monthly reports sent to those funds.
4. To submit a complete list of subcontractors.
5. To make restitution payments when wage violations are found.
6. To request approval to release final retention to subcontractors.
7. To submit a Fringe Benefit Statement with the first certified payroll report. Note:
Training Fund Contributions are never paid to the employee. If fringe benefits are
paid to a Union or Employer’s Trust Fund, the contact information should be
included in the designated place. If benefits are paid in cash to the worker, the
benefit dollar amount should be included in the designated place and state “paid
to worker” in the contact information area. Information must be included for
every craft and classification of worker that will be employed on the project,
including for apprentice levels that may perform work on the project. An
updated Fringe Benefit Statement must be submitted whenever there are
increases to the employee fringe benefits.
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If benefits are paid to an insurance company or other fund, then a spreadsheet
detailing the appropriate amortization of benefits will accompany the fringe
benefit form (PW-26 or equivalent)
8. Trust Fund Reports – Only applicable to contractors paying benefits to a plan,
program, or trust (such as union-signatory contractors). Trust fund reports
should be submitted monthly or at least once a quarter.
9. Public Works Affidavit . To be submitted by prime contractor with the Final CPR.
After signing off on the PWA, it will be forwarded to the CM along with an
Approval for Release of Retention when all outstanding issues have been resolved
or where no issues exist.
10. Certified Payroll Records (CPRs) – the following points regarding CPR review are
crucial: . A signed Statement of Compliance must be attached to all payroll reports
in order to make them “certified”.
- CPRs and Statements of Compliance shall be submitted for every week that work
is performed; a nonperformance payroll report should be submitted for weeks
where no work was performed.
- Explain that each entry on the form must be completed accurately.
- Advise attendees that the appropriate withholding (including fringe benefits and
union dues, if applicable) must be deducted from gross wages and forwarded to
the appropriate taxing agency and/or trust fund.
- Last payroll should be marked as “FINAL.” The final CPR will signal LCP staff to
begin closeout procedures.
- Advise attendees that computer-printed payroll forms are acceptable, if they
contain all the necessary data from Labor Code §1776(a).
Explain to attendees that labor compliance staff responsibilities will include the following:
1. To receive, review and audit certified payroll records.
2. To notify all project contractors of delinquent documents by email on a monthly basis.
3. To advise contractors of discrepancies found by means of audit reports.
4. To perform weekly confirmation of postings and periodic (not less than monthly) on-
site monitoring and interviews.
5. To notify the CM to release retention when the prime contractor has completed work
and when all documentation is complete and issues have been resolved.
6. To collect the LCP Checklist. Projects under an LCP require that the LCO distribute an
LCP Checklist. The LCP Checklist must be signed by every contractor assigned to the
project and returned to staff, who will include it in project files. The checklist is
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required when a case is reported to the Labor Commissioner for the withholding of
contract payments or if a Notice of Forfeitures is issued.
7. Discuss monthly requirement of verification of payment.
8. Notify C-10 electrical contractors that all workers performing electrician work must be
“certified” elections (and will be checked against the DIR list). Workers performing
electrician’s work for a C-10 contractor who are not “certified” shall either be enrolled
in an approved apprenticeship training program or designated as a “Trainee” on the
DIR’s electrician website and properly supervised by a Certified Electrician. (A listed
Trainee is still paid journeyman prevailing wages).
9. To provide monthly invoice payment recommendations to the CM based on the
contractor’s level of compliance.
10. To address other pre-construction meeting topics, including: record keeping
requirements, recent changes in federal and/or state regulations, and available
resources and the types of assistance provided.
5.5 LCP Forms the Contractor Is Required to Submit
LCP Checklist
Public Works Contract Award Information (DAS-140)
Statement of Compliance
Fringe Benefit Statement
Certified Payroll Reports
Request for Apprentices (DAS-142)
Training Fund Contribution (CAC-2 or Trust Fund Report)
Trust Fund Report (if fringe benefits are paid into a union or private plan)
Prior to a contractor starting work on a project, that contractor must submit an LCP Checklist, and
a DAS-140. The original DAS-140 must be sent to the union or apprenticeship committee for the
appropriate craft. Staff should receive a copy of the form and proof of transmittal.
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6. DAS Requirements
6.1 LCP Duties Regarding Apprentices
The duties of a Labor Compliance Program with respect to apprenticeship standards, according to
8 CCR §16434(c), are the following:
A) Inform contractors and subcontractors bidding public works about apprenticeship
Requirements.
Review payroll to determine if all apprentices are properly supervised and employed in
appropriate ratios.
Determine if apprentices who were dispatched were employed for the minimal amount of time
required (one full day of work (8 hours), but not less than 20% of the total apprenticeship hours
estimated for the project for that craft).
(B) Refer complaints and promptly report suspected violations of apprenticeship requirements to
the DLSE.
6.2 Prevailing Wage for Apprentices
Prevailing wage pay requirements for apprentices will be enforced consistent with the practice of
the Labor Commissioner, including:
A) That any contributions required pursuant to Labor Code §1777.5(m) are paid to the
appropriate entity;
B) That apprentices are paid no less than the prevailing apprentice rate;
C) That workers listed and paid as apprentices on the certified payroll records are duly registered
as apprentices with the Division of Apprenticeship Standards; and
(D) That the regular prevailing wage rate has been paid (i) to any worker who is not a duly
registered apprentice and (ii) for all hours in excess of the maximum ratio permitted under Labor
Code §1777.5(g), as determined at the conclusion of the employing contractor or subcontractor’s
work on the public works contract.
(E) Unsupervised apprentices are considered to be not employed consistent with the standards,
and are due Journeyman prevailing wage rates
The City of Ukiah shall, within five days of the award, send a copy of the award to the Department
of Industrial Relations (DIR). A copy of a blank PW100 is included in section 23 of this document.
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Registered apprentices may be paid an apprentice prevailing wage rate that is published by the
DIR, and is typically a percentage of the journeyman wage for the appropriate craft. A contractor
may only pay this lower prevailing wage rate to bona fide, active apprentices who are registered
with the DAS. If an apprentice is employed in any other craft than the one for which s/he is a
registered apprentice (such as an apprentice Sheet Metal Worker performing Laborer work), the
full journeyman wage rate for that craft must be paid. Verification of whether a worker is
registered with the DAS can be achieved by accessing the DAS Apprentice Search website:
http://www.dir.ca.gov/DAS/appcertpw/AppCertSearch.asp
Apprenticeship certification for public works
Enter search string ( LLLLF9999 ) here Search
How to compile the search string:
The search string is a total of nine letters and numbers (no characters ', - , etc): the first four letters of the last name
(use spaces to make four letters if the last name is shorter than four letters), the first letter of the first name and the last
four digits of the social security number (LLLLF9999). Letters can be entered as lower or upper case.
Examples:
Uncle Sam ssn 123-45-6789 would be entered as Sam U6789
Goddess Minerva ssn 123-45-5555 would be entered as MineG5555
Richard Al-Ham ssn 111-44-1111 would be entered as AlhaR1111
Robert O'Brian ssn 111-22-3333 would be entered as OBriR3333
James McHenry ssn 555-66-1234 might be entered as McHeJ1234 or Mc HJ1234
If you cannot find the individual you are looking for, complete the certifications you have and see the notes below.
If a search string that was entered does not match with any apprentices in the Division of Apprenticeship Standards (DAS)
database, this could be due to any of the following:
1. Not a registered apprentice.
2.
The submitted search string does not match to DAS records (either the database has the wrong search criteria or you
have the wrong search criteria).
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Examples from the DIR website are shown below:
Per California Labor Code Section 177.5, the union “Apprentice Agreement” (DAS1 Rev. 7/87) is
not acceptable proof of registration since it does not indicate whether the worker is currently in
the program. If the certification cannot be found online, contractors must submit a letter from the
DAS as evidence of registration.
A contractor’s failure to pay the apprentice rate or the payment of the apprentice rate to a worker
not registered as an apprentice, is a prevailing wage underpayment, and should be investigated
and audited in the same way as other prevailing wage underpayments.
6.3 Apprentice Usage Requirements
There are regulations for both the maximum and minimum allowable ratios of apprentices to
journeymen. As a general rule, contractors must use a minimum of one hour of apprentice work
to five hours of journeyman work, or 16.7% of total hours performed by apprentices. (See Labor
Code §1777.5(g), and also note exceptions in other subsections of §1777.5.)
Not all crafts are apprenticeable, though most are. An example of a non-apprenticeable craft is
Asbestos/Lead Abatement workers. An apprenticeable craft is denoted with a pound sign (#) next
to the craft name upon the DIR prevailing wage determination.
The Division of Apprenticeship Standards (DAS) collects the maximum ratios of apprentices to
journeymen set by each approved apprenticeship program. The correct ratios can be obtained by
contacting the DAS District Office; office locations can be found on the DAS website:
http://www.dir.ca.gov/DAS/das_offices.htm
The Chief of the DAS may grant a certificate exempting the contractor from the journeyman to
apprentice ratio under certain conditions [see California Labor Code Sections 1777.5 (i) through
(p).
Within five days of finding any discrepancy regarding the ratio of apprentices to journeymen, staff
must notify the DAS (See California Labor Code Section 1773.3). Minimum ratios are calculated at
the end of the contract or subcontract; a contractor who falls behind on apprentice usage may
seek to make up the difference before project completion. It is best practice to perform an
analysis of apprentice ratios during the project – halfway through a smaller project, or every six
3.
The apprentice agreement has not been submitted to DAS or has not been entered into the database (agreements
must be submitted within 30 days of the date that the apprentice signed the agreement).
If you believe that the apprentice should be reported as registered and is not; please contact your local office of the
Division of Apprenticeship Standards.
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months on a longer project – in order to be able to warn out-of-compliance contractors while they
still have time to achieve compliance.
If the contractor is determined by the Labor Commissioner to have knowingly violated California
Labor Code, the contractor may be penalized up to $100 per calendar day or noncompliance, and,
may be refused the right to bid on, be awarded or perform work on any public works contract for
a up to three years (See California Labor Code Sections 1777.7 (a) through 1777.7 (g)). If a
subcontractor is determined to have knowingly violated California Labor Code, the prime
contractor is not liable for any penalties unless the contractor had knowledge of the
subcontractor’s failure to comply; failed to provide copies of California Labor Code Sections 1771,
1775, 1776, 1777.5, 1813 and 1815 to the subcontractor; failed to periodically review the
subcontractor’s CPRs; failed to collect a declaration of apprenticeship compliance from the
subcontractor; or failed to take appropriate action when made cognizant of subcontractor non-
compliance (See California Labor Code Section 1777.7 d).
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7 Delinquent Payroll Records and Withholding Process
It is important to maintain accurate records regarding received certified payroll reports and other
documents from contractors. A monthly Delinquent Document Report is provided to clients and
prime contractors, generally including invoice payment recommendations; that monthly report
can be used as a to see who is missing items and needs to be sent a letter. The documents that can
be requested under an LCP’s authority are those which meet the definition of “Payroll Record” in 8
CCR §16000: “Payroll Records. All time cards, cancelled checks, cash receipts, trust fund forms,
books, documents, schedules, forms, reports, receipts or other evidences which reflect job
assignments, work schedules by days and hours, and the disbursement by way of cash, check, or in
whatever form or manner, of funds to a person(s) by job classification and/or skill pursuant to a
public works project.” Contractors who do not respond to a request for certified payroll records
are subject to the formal, written, delinquent document withholding process. Staff should begin
this process when more informal attempts to resolve the issue with the contractor (such as phone
calls, emails, and contacting the prime contractor) have not been successful.
7.1 Delinquent Document Withholding Process:
A formal notice will be issued to the prime contractor and applicable subcontractor(s) notifying
them that the required certified payroll documentation has not been submitted with the correct
information (as required and described above). If the contractor or subcontractor does not
respond within 10 days to correct and resubmit the documentation, they will be considered
delinquent according to Labor Code 1776 (d), and subject to withholding and penalties, according
to Labor Code 1776 (h).
If the contractor is non responsive, or provides an insufficient response, a notice will be sent to the
prime contractor notifying them that the funds associated with the delinquent payroll records will
be withheld.
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8 Document Review Process
8.1 Reviewing Certified Payrolls Reports
If possible, before the project begins, call all contractors and subcontractors assigned to work on
the project to determine the designated payroll agent (unless this was already done at the pre-
construction meeting); this is likely the person who will certify payrolls. Record this person’s
name and phone and fax numbers onto the “Contractor Documentation Filing” cover sheet and the
project’s electronic Document Tracking Log.
Once a contractor begins work on a project, staff will begin receiving certified payroll records.
California Labor Code §1776 requires contractors to submit these documents. CPRs must be
submitted immediately after the first week of work on the jobsite, and then weekly thereafter, but
in no case less than monthly. An agreement may be made that allows the contractor to remain in
compliance with the submission of CPRs 10 days after receiving a request. In certain
circumstances, CPRs may be submitted with the request for payment, if called for in the General
Conditions and allowed under CCR §16421. Orderly review of payroll records, including audits to
verify compliance with requirements, is key to the effective implementation of the LCP.
CCR §16404 states that payroll records may be submitted electronically, subject to all of the
following conditions:
(a) The reports must contain all of the information required by Labor Code Section 1776,
including full social security numbers, with the information organized in a manner that is similar
or identical to how the information is reported on the Department of Industrial Relations’
suggested “Public Works Payroll Reporting Form” (Form A-1-131);
(b) The reports shall be in a format and use software that is readily accessible and available to
contractors, awarding bodies, Labor Compliance Programs, and the Department of Industrial
Relations;
(c) Reports submitted to the Contracting Agency, a Labor Compliance Program, the Division of
Labor Standards Enforcement, or other entity within the Department of Industrial Relations must
be either (1) in the form of a non-modifiable image or record that bears an electronic signature or
includes a copy of any original certification made on paper, or alternatively (2) printed out and
submitted on paper with an original signature;
(d) The requirements for redacting certain information shall be followed when certified payroll
records are disclosed to the public pursuant to Labor Code Section 1776(e), whether the records
are provided electronically or as hard copies; and
(e) No contractor or subcontractor shall be mandated to submit or receive electronic reports
when it otherwise lacks the resources or capacity to do so, nor shall any contractor or
subcontractor be required to purchase or use proprietary software that is not generally available
to the public.
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Staff reviews CPRs to verify that the contractor and all subcontractors are paying the specified
prevailing wage rate to all workers. Depending on the project, CPRs for subcontractors may be
sent by the prime contractor or directly to staff by the subcontractor.
Staff shall check that weekly payroll records comply with the California Code of Regulations §
16421(a) (3) as well as California Labor Code sections § 1776(a) and § 1776(b), to the extent
described in § 16432(c) (See California Labor Code 2009 Amendments to section § 16432). CPRs
must be reviewed as promptly as practicable after receipt thereof, but in no event more than 30
days after receipt (See California Labor Code 2009 Amendments to section § 16432). “Review” for
this purpose shall be defined as inspection of the records furnished to determine if (1) all
appropriate data elements identified in Labor Code §1776(a) have been reported; (2) certification
forms have been completed and signed in compliance with Labor Code §1776(b); and (3) the
correct prevailing wage rates have been reported as paid for each classification of labor listed
thereon, with confirmation that payments were made.
Confirmation of CPRs: For projects requiring an LCP there is an additional requirement known
as payroll confirmation. Each month in which a contractor or subcontractor reports having
workers employed on the public work, confirmation of furnished payroll records shall be
undertaken randomly for at least one worker for at least one weekly period within that month.
“Confirmation” of payroll records furnished by contractors is defined as an independent
corroboration of reported prevailing wage payments. Confirmation may be accomplished through
worker interviews, examination of paychecks or paycheck stubs, direct confirmation of payments
from third party recipients of “Employer Payments”, or any other reasonable method of
corroboration. Confirmation shall also be undertaken whenever complaints from workers or other
interested persons or other circumstances or information reasonably suggest to the Program Staff
that payroll records furnished by a contractor are inaccurate.
Labor Code §1776 requires that the certified payroll records be kept by the contractor and
furnished to the Contracting Agency at times designated in the contract or within 10 days of
request. The prime contractor is responsible for the submission of certified copies of payrolls from
all subcontractors. If a contractor fails to submit CPRs, Labor Code Section 1776(h) states that the
contractor shall forfeit $100 per calendar day, or portion thereof, per worker.
8.2 Essential Information on Certified Payrolls Reports
When CPRs are received, they should be checked for the following information:
Employee's full name
Address (on first payroll submitted)
Social Security Number. Labor Code sections 226(a) and 226(i), which are not part of the
Public Works Chapter, require the state and other listed political subdivisions thereof to
use no more than the last four digits of an employee’s social security number on itemized
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payroll deduction statements furnished to the employee. The section does not affect a
contractor’s obligation under Labor Code section 1776(a) to provide the full Social Security
number on certified payroll records and under 1776(b)(2), to furnish DLSE, DAS, DIR and
awarding bodies with un-redacted records on request.
Work classification. This is important because it dictates which prevailing wage
determination to apply and on-site observations may reveal that the worker is performing
work outside the scope of this classification.
Straight-time hours per day and per week. The contractor must not employ a worker more
than eight hours in a calendar day or more than 40 hours in a calendar week, unless the
contractor pays the appropriate overtime wage rate. In some cases, employees may be
working on a modified work schedule. In such instances, the contractor must submit all
documentation that modifies the work schedule. If the contractor cannot provide
documentation that supports the validity of such modifications to the work schedule, then
the prevailing wage stands. Such modifications include, but are not limited to, the
following:
o Declaration of a “make-up” day
o Declaration of a “special shift” or a change of schedule to an alternative workweek
o Any other changes in the schedule affecting payroll records
Overtime hours per day and per week
Itemized deductions. Deductions identified as “Other” must have sufficient documentation
for verification (i.e. court order, written employee authorization)
Payroll check numbers. All information requested pursuant to Labor Code section 1776
and listed on DIR’s suggested format, “Public Works Payroll Reporting Form“ (Form A-1-
131), is expected to be furnished.
Actual per diem wages paid. Per Diem wages include employer payments for health and
welfare, pension, vacation, travel time, and subsistence pay as provided for in Section
1773.1, as well as for apprenticeship or other training programs authorized by Section
3093.
Gross wages paid for this project, as well as gross and net wages paid for all projects.
Contractor's full name and address
Project name and locations
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Dates of payroll (for added convenience of auditing and filing, contractors should be
encouraged to number their payroll consecutively for each week)
Payroll check numbers for each employee
Wage Determination Verification
• Payrolls should be checked to make sure that the new rates are in effect for each trade.
• New determinations are published in February and again in August. [Note: the new
determinations do not apply to projects already underway. The Bid advertisement date
controls wage rates]
Review of new prevailing wage rates should be done at least twice yearly.
• Approved rates go into effect 10 days after the new determination is issued.
8.3 Reviewing and Inspecting Certified Payrolls Reports
Below are the elements to review when performing a CPR audit:
Timeliness: According to California Code of Regulations Section 16435, CPRs are
delinquent when the contractor fails to submit the records on the date set in the contract,
and, according to Section 204 of the California Labor Code, employers are in compliance if
wages are paid within seven calendar days following the close of the payroll period within
which the wages were earned.
Completeness: Payrolls will be examined to determine whether they include all of the
required information listed in Labor Code §1776(a). Incomplete/inadequate payrolls are
noted in the tracking log and filed, and a revised or supplemental payroll is requested to
obtain missing information.
Work Classifications: Examine payrolls to ensure that the classifications listed on the CPRs
are recognized by the DIR and match the type of work that the Employee was assigned to
perform. Scopes of work for each classification are found on the DLSR website:
http://www.dir.ca.gov/dlsr/DPreWageDetermination.htm
Addresses and Social Security Numbers: Each worker's complete address and social
security number must be reported on the payroll. The contractor must report the worker's
new address when an address change occurs.
Numbering: CPRs should be numbered consecutively beginning with the first week that
work was performed on the site and continuing until the final week. Non-performance
weeks are to be included in the sequential numbering. The final payroll report must be
clearly marked “FINAL.”
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Recurring Inaccuracies: On projects subject to an LCP, CPRs that remain uncorrected for
one payroll period after the contractor has been informed of inaccuracies may trigger
withholding of contractor’s monthly progress payments. Staff will work with contractors to
the best extent possible prior to recommending any withholdings.
Payment of Prevailing Wages: Classification and wage rates reported on the payroll will be
compared against corresponding items on the applicable prevailing wage determination to
determine whether the contractor is paying the workers the appropriate wage. If a
contractor paid a lower wage rate, staff will calculate the restitution amount owed to
workers. (For information on how to determine the correct prevailing wage rate, see the
“Focus” notation in the following section (See California Labor Code Section 1774).
Deductions: Deductions will be reviewed to determine whether any impermissible
deductions have been taken. Permissible deductions include (See California Labor Code
Section 224):
o Federal and state withholding
o FICA and SDI
o Other deductions, such as wage garnishments, tax levies or court orders to pay child
support. These deductions must be explained in Section (1) of the Statement of
Compliance and must be accompanied by supporting documentation
o Any withholding or deduction authorized by the employee in writing to cover:
Insurance premiums
Hospital/medical dues
Any statute of a collective bargaining agreement
Determining the Correct Prevailing Wage Rate
Correct prevailing wage rates can be verified on the California Division of Labor Statistics and
Research website:
http://www.dir.ca.gov/dlsr/DPreWageDetermination.htm
To determine which prevailing wage rates apply to the project, you must know the date that the
bid was first advertised. Once the first advertisement date is known, determine the period. Each
year has two periods (e.g., 2014-1 and 2014-2). The first period is for all bids that were first
advertised between February 22 and August 22. The second period is for all other dates.
Note: New prevailing wage rates go into effect 10 days after release, therefore the two
periods are March 4th (non-Leap years) or September 1st.
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After the period is determined, go to the DLSR website above, where a series of menus will walk
you through the process for each craft. When you find the determination, look for a single (*) or
double (**) asterisk.
• Prevailing wage determinations with a single asterisk (*) after the expiration date are in
effect as of the bid date and are good for the life of the project.
• Prevailing wage determinations that have double asterisks (**) after the expiration date
indicate that the wage rate includes predetermined increases to the wages. If work will
extend past this date, the new, predetermined rate must be paid.
• All predetermined increases for trades with county by county determinations can be
found in a separate tab/worksheet within the determination worksheet. All
predetermined increases for other trades can be found by selecting “increases” the pull
down menu.
• When determining the prevailing wage amount due to a worker, the training fund
contribution amount should not be factored into the amount, as it is not payable to the
worker.
Note: Be sure to check the first date of bid advertisement for the project when determining the
appropriate prevailing wage rate. Do not assume that the current prevailing wage rate applies.
8.4 Determining Prevailing Wage Rates
The California Department of Industrial Relations (DIR) publishes prevailing wage determinations
twice a year, on February 22 and August 22. The rates go into effect ten (10) days after
publication – March 4 (March 5 during leap years) and September 1.
Correct prevailing wage rates can be verified on the California Division of Labor Statistics and
Research website:
http://www.dir.ca.gov/dlsr/DPreWageDetermination.htm
The steps to determine the prevailing wage rate for a given craft and project are as follows:
1. Find the applicable determination. The applicable determination is the one in effect at
the time the project is first advertised for bids. The two yearly determinations are named with
the year followed by a “1” or “2” – so the determination published on February 22, 2014 is
“2014-1,” and the one published on August 22, 2014 is “2014-2.” Older determinations are
collected on the site under “Superseded prevailing wage determinations.”
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2. Find the appropriate craft. Some crafts have prevailing wages that are valid throughout
the state; some are valid throughout certain counties only. Multiple places to find the craft you
need may need to be checked.
3. Look up the rate. The determination contains a “Basic Hourly Rate” and a “Total
Hourly Rate.” The Total Hourly Rate is the required total value of all wages and fringe benefit
payments; the Basic Hourly Rate is the minimum rate that can be paid to workers on their
paychecks, for contractors who pay the fringe benefit amounts to a trust fund or benefit plan.
4. Check for predetermined increases. Each determination is published with either a single
asterisk (*) or double asterisk (**) after the expiration date. Determinations with a single
asterisk will remain valid for the duration of the project; those with a double asterisk (**) have
predetermined rate increases that must be taken into account.
5. Look up increases, if necessary. They are published alongside the prevailing wage
determination.
6. Take fringe benefits and training funds into account. A contractor’s Fringe Benefit
Statement will state the hourly rate of fringe benefit contributions that are made; the wage
rate plus the total of all those contributions must equal or exceed the Total Hourly Rate.
Many non-union contractors do not have benefit funds and pay the entire prevailing wage directly
to the workers on their checks. It is important to note that the amount listed for “Training” may
not be paid this way; it can only be paid to an approved apprenticeship program or to the
California Apprenticeship Council.
8.5 Other Documents to Review
1. Statement of Compliance: CPRs submitted must be accompanied by a Statement of
Compliance, signed in ink by the contractor or the designated agent, attesting that the payrolls are
correct and complete and that the wage rates are not less than those set by the applicable wage
determination.
A CPR submitted without a Statement of Compliance is considered incomplete or inadequate and
may be subject to withholding and/or a recommendation for a penalty.
Contractors can utilize a statement of compliance form from:
A) The State of California Department of Transportation certification set forth on Form WH-348
B) Any form with identical wording
Note: Payroll data pertaining to owner-operators must be submitted on Form HC-58 or any form
with identical wording.
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Typically, contractors who are signatory to collective bargaining agreements (union contractors)
check "Box A" on the Statement of Compliance, indicating that they are paying fringe benefits into
an approved plan, fund or program. Most non-union contractors check "Box B" in order to indicate
that fringe benefits are paid in cash; however, non-union contractors also have the option to pay
their workers’ fringe benefits into a company sponsored plan, fund, or program (e.g. Health Net,
John Hancock Pension Program, Kaiser, etc.). A contractor must submit the appropriate
supporting documents in order to receive credit for these payments.
2. Fringe Benefit Statement: The contractor must prepare a Fringe Benefit Statement, and must
submit it along with the first payroll. The Fringe Benefit Statement is to be resubmitted when the
contribution amounts change.
The contractor can pay fringe benefits in two ways: 1) pay the benefits to a trustee or third party;
or 2) pay the fringe benefits in cash to employees, minus training fund contributions. If a
contractor has specified on the Fringe Benefit Statement a union to which contributions are made,
he/she should have indicated on the Statement of Compliance that benefits are being paid to an
approved plan, fund or program. If the contractor does not make payments to a trustee or other
third party, he/she may consider, as part of the wages of any laborer or worker, any costs to
provide fringe benefits under another plan. These costs must be verifiable. The City of Ukiah may
require the contractor to set aside assets in a separate account for meeting the obligations of the
program.
The Fringe Benefit Statement should be compared to 1) the prevailing wage determination, and 2)
the Statement of Compliance. Check to make sure the employers’ payments match the amounts
specified on the determination.
3. Training Fund Contributions Form: Contractors who employ workers in apprenticeable
trades must make training fund contributions either to the
California Apprenticeship Council (CAC) or to an approved apprenticeship training program (list
of all approved apprenticeship program are on the DIR website). If using the CAC, the CAC-2 form
and copies of contribution checks must be submitted as evidence of payment of the training fund
contribution. Contributions can also be verified online once payment is received by the DIR.
Contractors who are signatory to collective bargaining agreements must submit the trust fund
report and copy of contribution check that they send to the trust fund on a monthly basis.
Typically, the reports are due around the 15th of each month for work performed during the
month prior. The report should be checked to verify that all workers listed on the CPR for that
month were on the trust fund report and that all contributions match the amounts listed on the
determination. Any deviations will require the preparation of an audit worksheet.
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9 Auditing Process
Audit, investigative and enforcement responsibilities are the most challenging aspects of
operating a labor compliance program.
The 2009 Amendments to the California Labor Code §16432(e) define audit as: a written
summary reflecting prevailing wage deficiencies for each underpaid worker, and including any
penalties to be assessed under California Labor Code §1775 and 1813, as determined by the LCP
after consideration of the best information available as to actual hours worked, amounts paid and
classifications of workers employed in connection with the public work.
An audit requires comparing payroll records to the best available information as to the actual
hours worked and classifications of workers employed on the contract. Audits may be conducted
when deemed necessary, upon receipt of a complaint by a worker on the public works project or
upon request of the Labor Commissioner. A sufficiently detailed audit enables the Labor
Commissioner to draw reasonable conclusions as to compliance with the Labor Code and enables
accurate computation of underpayment of wages to workers and applicable penalties and
forfeitures. Records shall be made available to show that the audits conducted are sufficiently
detailed to verify compliance with the requirements of Chapter 1 of Part 7 of Division 2 in the
California Labor Code. An example of a sufficiently detailed audit may be found in Appendix B of
the California Code of Regulations (See California Code of Regulations §16432 and Appendices A
and B for 2006 and 2007 Amendments).
Spot Auditing: Staff must regularly track the status of spot auditing and the completion of monthly
reports for each of his/her projects to ensure that these activities are being completed on a timely
basis.
Desk audits of contractor and subcontractor files are performed to compare information obtained
from on-site field inspections and employee interviews against payroll records. If violations of
labor standards are occurring, this audit will usually uncover them. A desk audit will be
conducted of all documents that are submitted, including, but not limited to: CPRs, time cards,
bank certified cancelled checks, Monthly Reports to Trustees, Owner-Operator Listings, Fringe
Benefit Statements, and apprenticeship forms.
Payroll reports will be compared against employee interview reports (see Field Monitoring
Section). If discrepancies are found between the employee interviews, the on-site inspection
reports and/or information listed on the payroll reports, staff will initiate a full audit (described
below). If clarification is needed as to the actual day, dates, and hours worked, as well as wages
paid for labor on the project, additional documents, such as timecards (or timesheets), Daily
Inspector’s Records, cancelled payroll checks, and the payroll register can be requested.
The minimum requirement for a review of certified payrolls (outlined in 8 CCR 16432(b)) consists
of the following: determine if (1) all appropriate data elements identified in Labor Code Section
1776(a) have been reported; (2) certification forms have been completed and signed in
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compliance with Labor Code Section 1776(b); and (3) the correct prevailing wage rates have been
reported as paid for each classification of labor listed thereon, with confirmation of payment
performed as required in §16432(c).
When necessary, or as a spot-check, comparison of certified payroll records (CPRs) may be made
to records or documents maintained independent of CPRs or those records used to gather the
information contained in the CPRs. These are usually referred to as source documents and include
but are not limited to front and back copies of cancelled checks, time cards, copies of pay check
stubs, payroll registers, personnel sign-in sheets, daily logs and any other document which
authenticates or corroborates that which has been reported.
Staff may conduct a random on-site audit of a contractor’s office in order to obtain confirmation of
the payroll records furnished by a contractor and/or subcontractor as independent collaboration
of reported prevailing wages (pursuant to California Code of Regulations §16432(c)). On-site
audits should be announced to the contractor in question within a few days’ notice and serve to
inform the contractor that staff will be at their office on a specified date. A typical on-site audit
will review the following records, which shall be made available by the contractor at the time of
review:
Certified payroll records (CPRs)
Fringe benefit statements that accompany the CPRs
Department of Apprenticeship Standards forms (DAS-140)
California Apprenticeship Council forms (CAC-2)
Union Trust Fund Reports substantiating fringe benefit payments
Copies of requests for approved deductions, if any
Copies of cancelled payroll checks issued during the review period (front and back)
Copies of the payroll register for the selected review period
Timesheets/time cards for employees listed in the CPRs for this project
Investigative activities are the duties and tasks engaged in to verify the payment of prevailing
wage rates upon receipt of a complaint or in conducting an audit of records. Prior to filing a Notice
of Withholding of Contract Payments, the City of Ukiah must demonstrate that a thorough and
objective investigation took place. Consequently, all activities aimed at verifying a complaint or the
accuracy of records must be documented and maintained. All correspondence regarding wage
withholdings, assessments and forfeitures must be completed via first-class, certified U.S. mail.
Moreover, if any pertinent documents are delivered by hand, a signature and/or date stamp from
whoever received the documents must be obtained. Conversation logs should be kept for all in-
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person or telephone conversations, memorializing topics discussed immediately after the
conversation takes place.
The activities and information aimed at verifying a complaint or the accuracy of records must
correlate with the type of audit done. The following are some audits and the activities and
information necessary to appropriately fulfill them.
Audits of the obligation to secure workers’ compensation
Written evidence, typically in the form of an insurance binder issued by the carrier, CSLB
website printout, or telephone or written inquiry to the Workers’ Compensation Insurance
Rating Bureau
Audits of the obligations to employ and train apprentices
Inquiry to the program sponsor to establish whether contract award information was
received, including an estimate for the journeyperson hours to be performed and the
number of apprentices to be employed; whether apprentices have been requested, and
whether the request has been met; whether the program sponsor knows of any amounts
sent by the contractor or subcontractor to it for the training trust, or the California
Apprenticeship Council; and whether persons listed on the certified payroll in that craft or
trade as being paid less than the journeyperson rate are apprentices registered with that
program and working under apprentice agreements approved by the Division of
Apprenticeship Standards
Audits of the obligation to make apprenticeship training contributions to either a training
trust or the California Apprenticeship Council
Ask for copies of checks sent or, when the audit occurs more than 30 days after the month
in which payroll has been paid, copies of canceled checks
Audits of “illegal taking of wages”
Inspection of written authorizations for deductions (listed in Labor Code Section 224) in
the contractor or subcontractor’s files and compare to wage deduction statements
furnished to employees (Labor Code Section 226), together with an interview of several
employees as to any payments not shown on the wage deduction statements
Audits of the obligation to keep records of working hours, and pay not less than required by
Title 8 CCR Section 16200(a)(3)(F) for hours worked in excess of 8 hours
The steps for review and audit of Certified Weekly Payrolls under Title 8 CCR Section
16432
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Audits of the obligations to pay the prevailing per diem wage
Such steps for review and audit of Certified Weekly Payrolls which will produce a report
covering compliance in the areas of:
o All elements defined as the “General Prevailing Rate of Per Diem Wages” in Labor Code
Sections 1773 and 1773.1, which were determined to be prevailing in the Director’s
determination which was in effect on the date of the call for bids, available in its
principal office, and posted.
o All elements defined as “Employer Payments” set forth in Labor Code Section 1773.1,
which were determined to be prevailing in the Director’s determination which was in
effect on the date of the call for bids, and pursuant to Labor Code Section 1773.2 were
to be specified in the call for bids, made available in its principal office and posted.
o Staff should request copies of cancelled checks from the project contractors in order to
verify that the workers cashed their payroll checks and the CAC and/or trust fund
payments (if applicable) were in fact made/credited against the contractors account.
9.1 Audit Certified Payroll Records
Because audits involve comparing CPRs to records and documents maintained independent of
them, it is important to thoroughly audit the CPRs themselves. Below are the key aspects of the
CPRs and best practices for reviewing them.
Statement of Compliance
Signature present
Payment of Fringe Benefits
o Paid to Trust Fund – Worker should be receiving Basic Hourly Rate
o Paid in Cash to Worker – Worker should be receiving the Total Hourly Rate minus the
Training Fund contribution amount
Classification
Journeyman rate for the applicable determination is based on the bid date, unless there is
an applied increase
Apprentices receive a percentage of the Journeyman’s Basic Hourly Rate depending on the
level or period of the apprentice; the Apprentice’s fringe benefit amount should be
calculated separately
o Example: Journeyman rate is $21.24 and the Apprentice is at the 50% level, the
Apprentice would receive at least $10.62 per hour
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Ratio of Journeymen to Apprentices
Each trade has a stipulated Journeyman to Apprentice ratio established by the Division of
Apprenticeship Standards (DAS)
Notation should be made of any CPR with a disproportionate amount of Apprentices to
Journeymen
Notification must be sent to contractors that are using a disproportionate number of
apprentices to journeymen to remind them that the ratio must be respected “before the
end of the contract” as defined by Labor Code §1777.5(h).
Reviewing the CPR
Is the worker’s work classification pay rate equal to or greater than the DIR published
prevailing wage rate for that particular project? (California Labor Code Section 219 allows
employers to pay more frequently and in greater amounts than the minimum stated by the
DIR).
o If “No,” then tag the CPR with either a post-it note or note; Look for other
underpayments that will need to be included in the Public Works Audit Worksheet;
Prepare a Public Works Audit Worksheet for any audits.
o If “Yes,” then search for other compliance items to ensure contractor is in full
compliance.
Has the Worker worked more than 8 hours in a given day?
o If “Yes,” was the worker paid overtime rate? If the worker was paid the basic rate and
not the overtime rate, this is evidence of an underpayment.
Were any employees listed as working on Saturday, Sunday, Holidays or shift work?
o If “Yes,” was the proper overtime rate paid (1 ½ or double time of the standard hourly
rate)?
o If “No,” prepare a Public Works Audit Worksheet
Calculating 1 ½ time: [(BHR x 1.5) + Fringe Benefit package]
Calculating double time: [(BHR x 2) + Fringe Benefit package]
Note: There are exceptions to working on weekends, such as due to weather
conditions
Deductions/Taxes: Rarely do deductions occur in round numbers, check the amount of the
deductions
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o Calculating Net Wages: Gross Amount minus Total Deductions equals Net Wages paid
for Week
o Any discrepancies in deductions should be explained by Contractor in writing
Note: Employer payments are a credit against the obligation to pay the general
prevailing rate of per diem wages; however, no credit shall be granted for benefits
required to be provided by other than state or federal law. Credits for employer
payments also shall not reduce the obligation to pay the hourly straight time or
overtime wages found to be prevailing (See California Labor Code Section
1773.1(c))
Comparing CPR hours against other sources
o CAC-2 for month, only if the contractor is not paying its training funds into a Trust Fund
When auditing the CAC-2, check to see if the training fund rate matches the rate
on the prevailing wage determination
Discrepancies between the training fund rate or the number of hours reported
on the CAC for that month should result in the preparation of an Audit
Worksheet
o Trust Fund Reports: Refer to Auditing Trust Fund Reports
o Project Sign-In Sheets
o Employee Interview Sheets
o Timesheets
o Contractor’s Payroll Registers
Request supporting documents from other sources (If no response is received, then follow-
up letters must be sent at least every 10 days)
o Project Manager
o Inspector of Record
o Construction Manager
o Contractor
o Prime Contractor
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Timesheets: Compare the hours reported on CPR against the worker timesheets;
Check that the hours match and that the worker has signed the timesheet.
Payroll Register: compare the amount on the register against the CPRs.
Cancelled Checks: Do the check numbers match the CPRs? Do the amounts match?
Are the checks signed by the worker and cashed?
Sign-In Sheets: Do all the workers that signed in on the job appear on the CPRs? If
workers that signed in do not appear on the CPRs, then there is a potential
underreporting issue and a potential prevailing wage issue and further investigation
is needed.
Daily Reports: Does the reported number of workers on a given day match the
CPRs? If the numbers do not match, then there is a potential underreporting of
workers and further investigation is needed.
o Other document sources
Inspector Reports
Construction Manager Daily Reports
Site Interviews
Change Orders
Original Contracts for Scope of Work
Calculating Amounts Due to Workers
To calculate the amounts due to workers, a Public Works Audit Worksheet will be
completed. CCR section 16432(e) requires that audits be detailed in a Public Works Audit
Worksheet—Appendix B, which is provided as an Appendix to this manual.
For contractors who are paying fringe benefits to an approved plan, fund or program, the
"Hourly Rate of Pay" on the payroll report form is to be compared with the "Basic Hourly
Rate" shown on the wage determination. If the worker's hourly rate equals or exceeds the
basic hourly rate, no underpayment of prevailing wages exists.
Note: Vacation pay is always taxable, is included in the hourly rate of pay, and then is
deducted.
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For contractors who are paying fringe benefits in cash, the "Hourly Rate of Pay" is to be
compared with the "Total Hourly Rate" shown on the wage determination (minus the
training fund contribution). If the worker has been paid an amount equal to or greater than
the prevailing wage rate, no underpayment exists.
If a worker has been underpaid, the difference between the minimum applicable hourly
prevailing rate and the hourly rate paid is determined, and multiplied by the total hours
worked in order to determine the amount of underpayment. Straight-time hours and
overtime hours are calculated separately. When calculating overtime underpayments, first
multiply the basic hourly rate by 1.5 (or 2.0 if it is for Sunday/holiday work). Next add the
fringe benefit amount (employer payments) to that calculation.
9.2 Audit Trust Fund Reports
Review the Trust Fund reports for the same month as the CPRs
Compare the names listed on the monthly CPRs to those names listed in the contractor’s
monthly trust fund report; check to see which week-end dates are included in that report
Create a simple chart for each worker listed on the CPRs
Name, Week 1 hours, Week 2 hours, Week 3 hours, Week 4 hours, and Total Hours
The Total Hours for that particular employee should be equal to, or less than, the hours
listed on the trust fund report
Check the benefit amounts against the prevailing wage determination to make sure they
are paying the correct contribution
If an employee listed on the CPRs is not listed on the trust fund report, Draft a potential
underpayment letter and Public Works Audit Worksheet for that worker. Include all hours
worked during that month and multiply all hours by the correct benefit rates
If the benefit amounts on the trust fund reports are lower than those published in the
prevailing wage determination, draft a potential underpayment letter and Public Works
Audit Worksheet for all affected workers. Include all hours worked during that month and
multiply all hours by the correct benefit rates
If the Prevailing Wage Determination refers to the DAS for Apprentice Fringe Benefit
Contribution amounts, call the local apprenticeship committee to verify the contribution
amount (different periods of apprenticeship may have different contribution amount)
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9.3 Audit Letter
When it has been determined that a potential violation exists, staff shall take prompt action to
enforce compliance, including the thorough imposition of appropriate penalties and formal
enforcement action. Every audit where a potential underpayment or violation has been
uncovered should be accompanied by an audit cover letter that describes the violation and how to
rectify it in addition to an Audit Rationale Sheet, which is a summary of the investigation with a
statement of the preliminary findings and recommended corrective action necessary to meet
compliance requirements and audit worksheets provided by the DIR (formerly known as
Appendix B), which include: a Public Works Audit Worksheet that shows the workers involved
and amounts paid/due; a Public Works Investigation Worksheet; and a Prevailing Wage
Determination Summary sheet. Any details about the audit that are not described on the audit
letter must be included in the Audit Rationale sheet.
The audit cover letter should include the following information:
Subject Line: Summarize the issue and assign an audit number to the audit; the audit
number should contain the contractor’s name and a number to differentiate it from any
other audits. State the project name. Include The City of Ukiah as the awarding body.
Introductory paragraph: State that the project is a public works project that is subject to
the payment of prevailing wages. Indicate staff members responsible for monitoring and
enforcing the labor compliance program on the project. State that staff has discovered an
apparent violation of CA Labor Code (state the section) and describe what the issue is (e.g.
underpayment of prevailing wages, non-payment of training fund contributions,
underreporting of workers/hours on Trust Fund Reports, etc.). State how many workers
are affected and describe the method in which the underpayment was discovered (e.g.
completed a review of CPRs, reviewed reports that contain differences in the number of
workers reported on the CPRs, on-site interviews, etc.).
Describe the issue: State the facts. Describe the rationale behind the discovery of the
underpayment issue. Describe how the contractor’s reports are potentially incorrect (i.e. do
not reflect the correct wages, number of workers, etc.) and what the correct information
should be. Cite the DIR determination and make reference to any predetermined increases
that are applicable to the project. Summarize how much money is due and state that the
amount is reflected in the attached audit worksheet. Restitution checks to resolve worker
underpayment issues should be made payable to the worker, minus standard tax
deductions. All underpayment checks should be sent to staff for distribution to the
appropriate entity.
Note the period covered. State “any other audits outside of this period will be assessed in a
separate audit.”
Un-verified apprenticeship certifications (if applicable to the audit)
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o These documents are necessary if staff has identified apprentices working on the job
but cannot verify that they are registered apprentices.
Request for missing documents
Instructions for making restitution and penalty payments
Due dates for a response
o Indicate a time period for response, usually 10 days, and request that any refutation of
the preliminary findings be accompanied by documented evidence supporting the
claim. Identify the consequences for failure to respond, to provide additional evidence
of compliance, or to provide proof of payment.
On an as-needed basis, according to the circumstances and issues that may arise:
o Calculate back wages and penalties using the proper wage determinations and trade
classifications pursuant to the DIR DLSR directives and records
o Review preliminary findings with the Construction manager, and the Contractor /
Subcontractor
All underpayment letters pertaining to an audit must be sent via certified mail to both the
prime and affected subcontractor, if applicable.
Who Receives Restitution of Fringe Benefits?
If fringe benefits are paid into a Trust Fund or approved plan, then any restitution of
unpaid fringe benefits should be paid to that fund or plan.
If fringe benefits are paid in cash to the worker, then these are treated as a regular
underpayment to the worker.
9.4 Audit Worksheet
The purpose of the audit worksheet is to notify the contractor of the violation. If the contractor
fails to respond, staff forwards the audit worksheet to the DLSE, at which point it will be the
responsibility of the contractor to follow up. Audit worksheets sent to the DLSE must include:
• A Prevailing Wage Determination Summary
• A Public Works Investigation Worksheet
• A Public Works Audit Worksheet
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• An audit narrative (determination) that contains a thorough description of the violation
and its discovery, an account of the actions LCO staff took to resolve the issue, and the
LCO’s recommendation.
Blank samples of the Prevailing Wage Determination Summary, Public Works Investigation
Worksheet, Public Works Audit Worksheet, and an audit narrative are included as an Appendix to
this manual.
9.5 Prevailing Wage Determination Summary
The Prevailing Wage Determination Summary provides the investigator an overall summary of the
prevailing wage rates and contribution amounts associated with the audit. Each work
classification is linked to a “code number.” This classification code number must be placed on the
Public Works Investigation Worksheet (further explained below).
Below are the headings of a Prevailing Wage Determination Summary. The headings are followed
by what items are required. All information can be referenced upon the DIR Prevailing Wage
Determination.
a. Classification
List all individual work classifications for each scope of work that the contractor employed on
the project, which were affected by the audit.
b. Wage Determination Number
List the wage determination number for all work classifications that the contractor employed
on the project, which were affected by the audit.
c. Effective Date
Indicate the effective date of the work classification for each scope of work.
d. Hourly Rate
Indicate the straight-time hourly rate for each work classification.
e. Contributions
Indicate the sum of the hourly Employer Payments, excluding training; these include: health &
welfare, pension, vacation, and other.
f. Training
Indicate the hourly training contribution amount.
g. Time and a half
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Indicate the overtime hourly rate for daily time-and-a-half.
h. Holiday/Sunday
Indicate the overtime hourly rate for “Sunday & Holiday” time.
i. Travel & Subsistence
Indicate the travel and subsistence rate. This can be referenced on the internet:
www.dir.ca.gov/DLSR/PWD
j. Other Hourly Requirements
Indicate any other hourly requirements that are not covered above. This may include shift
differential pay.
9.6 Public Works Investigation Worksheet
The Public Works Investigation Worksheet shall be completed for each worker that is affected by
the audit. It provides the investigator with a week-by-week summary of the hours reported as
worked/paid versus the required hours/wages that should have been paid, in addition to amounts
of penalties. Use as many worksheets as necessary to complete the audit for each worker; denote
the total number of pages for that worker in the lower right hand of each page.
Below are the headings of a Public Works Investigation Worksheet. The headings are followed by
what items are required.
a. Employees Name & Social Security Number
Identify the name and social security number for the worker.
b. Deputy
Identify the name of the LCO Auditor.
c. Office
Identify the office as “City of Ukiah Labor Compliance Office”
d. Date
Identify the date the audit was completed or latest date it was revised.
e. Employer
Identify the name of the contractor that employed the worker.
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f. Case Number
Identify the audit case number.
g. Classification Code
The classification code number can be found on the Prevailing Wage Determination Summary.
h. Period Ending
Enter the week end date of the Certified Payroll in this area.
i. Hours of Work
For each day within the reporting week end date, enter the hours the employee worked.
Straight-time hours, overtime hours, and double-time hours must be reported on their
respective rows.
j. Total Days Worked
Enter the total days worked within the reporting week.
k. Total Hours Worked
Enter the total hours worked within the reporting week, as reported by the CPR, making sure
identify straight-time hours, overtime hours, and double-time hours within their respective
rows.
Note: In this area, only enter the hours reported by the contractor. Any mistakes in overtime
reported hours should not be corrected here; they should be reflected in the area called
“Prevailing Hours Worked.”
l. Actual Rate (ST, OT, DT)
Enter the basic hourly rate as reported upon the contractor’s CPRs for straight-time hours,
overtime hours, and double-time hours.
m. Other Compensation
Enter any other compensation as reported upon the CPRs here.
n. Total Wages Paid
Enter the total gross wages paid for this project, as reported on the CPRs.
o. Required Wage Rates (St, OT, DT)
Enter the basic hourly rate as reported upon the DIR Prevailing Wage Schedule for straight-
time hours, overtime hours, and double-time hours.
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Note: When determining overtime and double-time hours, Analyst must reference the work
classification’s Collective Bargaining Agreement (CBA), as published in the prevailing wage
determination. The CBA states the hourly threshold for calculating over- and double-time
hours.
p. Other Compensation
Enter any other compensation as required by the DIR Prevailing Wage Schedule here. This may
include the employer payments/fringe benefit contributions per each hour worked, if the
contribution amounts are not calculated as part of the worker’s hourly rate (i.e. contributions
due to the union trust fund).
q. Total Wages Required
The total wages required is a sum of the “required wage rates” and the “other compensation”
column, both multiplied by the hours.
r. Amount Due and Owing
The amount due and owing is the product of the “Total Wages Paid” and “Total Wages
Required” fields.
s. Number of Violations
Count and enter the total number of wage violations in the box provided for each reporting
week. This amount will be multiplied by the penalty rate.
t. Penalties 1775__ and 1813__
In the space (__) provided next to the Labor Code section number (“1775” or “1813”), enter the
assessed penalty amount per occurrence
u. Total Training Fund
Enter the hourly training fund contribution amount next to the area called “rate.” Multiply that
rate by the number of hours worked in that reporting week and enter that amount in the field
below the “rate.”
v. Amount Due and Owing (column furthest to the right)
The amount due and owing is the product of the “Total Wages Required,” “penalties 1775,”
“penalties 1813,” and “Total training fund” fields.
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9.7 Public Works Audit Worksheet
The Public Works Audit Worksheet provides the investigator with a summary of the total wages
paid by the contractor versus the required hours/wages that should have been paid. It also
identifies penalties and training fund contributions due and owing.
Below are the headings of a Public Works Audit Worksheet. The headings are followed by what
items are required.
a. Employer Firm, Address, Project, Awarding Body, Prime, Deputy, Office
Include the information in the top portion of the worksheet.
b. Transcriber
Indicate the name of the LCO Auditor here.
c. Total Amount Due/Owing, Wages Due/Owing, Penalties Due/Owing, Training Funds
Due/Owing
Enter the total amounts, for all workers, in their respective fields.
d. Employee
List the names of all workers affected by the audit.
e. Classification
Next to each worker’s name, list the work classifications. If one worker has performed more
than one classification, enter that worker’s name next to each classification.
f. Period Worked
Identify each week-ending period worked by each worker listed.
g. Hours Worked
For each day within the reporting week end date, enter the hours the employee worked.
Straight-time hours, overtime hours, and double-time hours must be reported on their
respective rows.
h. Other Wages Paid
For each week-ending period, enter the total gross wages paid for this project, as reported on
the CPRs and on the Public Works Investigation Worksheet.
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i. Total Wages Paid
For each week-ending period, enter the total gross wages paid for this project, as reported on
the CPRs and on the Public Works Investigation worksheet.
j. Prevailing Wage Requirements
Other: For each week-ending period, enter any other compensation amounts required, as
reported on Public Works Investigation Worksheet.
Total Wages: For each week-ending period, enter the “total wages required” amount, as
reported on Public Works Investigation Worksheet.
k. Amount Owing and Unpaid
For each week-ending period, enter the “Amount Due and Owing” amount, as reported on
Public Works Investigation Worksheet; this is the column next to the “Total Wages Required.”
l. Penalties No. 1 & Penalties No. 2
For each week-ending period, enter the penalty amount due for the first penalty assessment
(e.g. for penalties associated with 1775 violations); if there are penalties for a second violation
(e.g. for penalties associated with 1813 violations) enter those amounts in the Penalties No. 2
area.
m. Training Fund
For each week-ending period, enter the total amounts from the ”Total Training Fund” area, as
reported on Public Works Investigation Worksheet.
n. Total Amount Due
For each week-ending period, enter the “Amount Due and Owing,” which is the last column on
the Public Works Investigation Worksheet.
Enter the total amounts for all columns at the bottom the page. In the box in the lower left-
hand side of the page, enter the hourly penalty assessment amount for each violation.
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10 Field Monitoring
10.1 Content of Employee Interviews
Employee interviews must be sufficiently extensive to establish the degree of compliance and to
uncover any violations. Employees will be informed that the information they provide is
confidential, and that his or her identity will be disclosed only with the employee's written
permission.
Note: Disclosure of employee statements is governed by the California Public Records Act,
Freedom of Information Act and the Privacy Act of 1974 and Labor Code section 1736, if the
investigation is sent to the DLSE.
On-site visits must include visual inspection of the copy of the DIR determination(s) of the
prevailing wage rate of per diem wages and of the Notice of Labor Compliance Program Approval
listing a telephone number to call for inquiries, questions, or assistance with regard to the LCP
(See California Labor Code 2007 Amendments § 16432(d)).
Current employees may be interviewed during work hours, provided that the interview can be
properly and privately conducted on the jobsite. Workers must actually be working when the
interviews are conducted, so interviews generally should not occur during the workers’ breaks or
lunch periods.
In cases of possible falsification of records or fear of reprisals or intimidation, it may better to
conduct the interview elsewhere, such as in the employee's home or at the office. The worker’s
work classification must be visually confirmed at the work site prior to any such meeting.
Employee interviews are to be conducted during each week that workers are present at the
jobsites, pursuant to CCR §16432(d). Employee interviews shall be recorded on the Employee
Interview Form. A sample Field Interview Form is included in section 23 of this manual.
The following information is to be requested and reported on the Interview Form:
Project name and/or number.
Contractor or employer.
Employee's name and Social Security number. The employee's full name must be
documented as well as any name variation from that listed on the payroll. Privacy issues
are critical when it comes to requesting Social Security Numbers from workers. If workers
are hesitant to provide their social security number:
o Inform the worker that the payroll records have identification information and the
intent is to ensure that the worker is the same person as identified on these records.
o If the worker is reluctant to provide the full number, secure, at minimum, the last four
(4) digits for identification
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This information is valuable when the employer has indicated payment has been
made to the worker and payroll checks are submitted, ensuring that the same
person was paid
Where the worker is an apprentice, the last four digits will be used to verify
certification
Home address and telephone number.
o Inform the worker that the purpose for asking for their address & phone number is in
case of any potential underpayments or investigations. Accurate contact information is
necessary should the LCO need to communicate with this worker in the future
o Addresses are also used to identify the specific worker in the event that there is another
worker with a similar name
o If a worker refuses to provide an address, indicate on the interview sheet that the
worker was asked for the address and declined to answer and ask the worker to initial
beside the address area on the interview sheet as confirmation that the question was
asked
o At minimum the City or ZIP code should be provided by the worker (This information
will also be instrumental in determining the travel radius)
Duration and last date worked on the project prior to the day of the interview. It must be
emphasized to the worker that questions relate only to project work. As a check on the
number of hours worked on the project, the worker will be asked the time of day he/she
started work on the project on the day in question, the time he/she stopped working, and
the time taken for lunch.
Hourly rate of pay. It must be determined what the worker is being paid per hour. The
worker should have received at least one check for work performed on the project to
determine the rate of pay. If the worker has not received a paycheck, arrangements should
be made to re-interview the worker at a later date.
o No issue exists if the worker is being paid a rate higher than the prevailing wage rate
(See California Labor Code Section 219); however, if the hourly rate of pay is lower than
the required rate, the investigator is to question the worker further to determine
whether the worker is really being underpaid.
o If the worker is being paid a rate less than stated on the CPRs, the employer may be
secretly paying a lower wage while purporting to pay the wage designated by the
statute or the contract. This action is unlawful (See California Labor Code Section 223).
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o NOTE: If the worker complains of being asked or required to work during any meal or
rest period, or, if the employer fails to provide an employee a meal or rest period, the
employer shall pay the employee one additional hour of pay at the employee’s regular
rate for compensation for each work day that the meal and/or rest period was not
provided (See California Labor Code Sections 226.7(a) and 226.7(b)).
Information on Wages Received. Indicate the method and frequency of payment. It is
critical that the site interviewer ask the employee if it has a check stub and what the total
amount of its last payment received was.
Classification. The worker being interviewed may not be familiar with the classification
used on the wage determination and thus may use a term not found on the determination.
Further questioning will probably uncover the correct classification. Indicate whether the
worker is a member of a union and the status as a journeyman or apprentice. For trades
that have multiple levels, have the worker indicate what level they are (if known).
Duties and tools or equipment used. A description of the work being performed must be
observed and recorded as well as the tools or equipment used by the worker to determine
the appropriate work classification.
Questions about how the worker arrived at the project. These questions will determine
whether the worker is entitled to travel and subsistence pay.
Questions about hours. These questions will determine whether the worker is entitled to
overtime pay.
Questions about keeping record of hours. Questions about how the worker keeps record of
its hours is important if the LCO undergoes an investigation and needs to request further
evidence to substantiate the hours reported on payroll. Inquire if the worker is required to
sign-in and sign-out on the job site and with whom is worker signing in and out (Prime,
Sub, someone else)?
Worker Check Stub Review. This area allows for staff to record information from the
worker’s check stub onto the interview form. Verification of employee’s receipt of wages is
required under CCR§16432(c); this is one way to meet that requirement, if stubs are
available.
Compliance investigator remarks. Any discrepancies or questionable information
encountered in the interview should be documented. Particular attention should be paid to
any hint of coercion or intimidation of the interviewed employee in connection with
revealing the actual pay rate. Also indicate if only a headcount was taken (indicate the
number of workers observed) and record the number of workers the Foreman reported on
site that day.
Employee's signature and Date of the Interview. Each interviewed worker must sign the
employee interview form. The date that the worker is interviewed will be noted. The date
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can be extremely useful in that it is a comparison of information gathered at the jobsite
against payroll information for that date and, thereby, can help to uncover inconsistencies.
10.2 Conducting On-Site Interviews
Observe the scope of work
o Is worker performing within the scope of the classification?
o Note on the interview sheet if the worker is operating equipment not associated with
the classification or performing work not associated with the classification.
Identify the LCO representative's role
o Introduce yourself
o Use the appropriate conversational language (e.g. Spanish if appropriate)
o Present business card
o Inform the worker that the City of Ukiah must ensure that prevailing wages are being
paid to the workers on this public works job
o Inform the worker that each week their company is submitting payroll records which
includes identity information (name, address, social security number, hourly wages,
work classification, and payment)
o Inform the worker that the purpose of this interview is to ensure that the information
submitted is accurate
o Assure the worker that the information gathered is to ensure that the worker is being
paid the correct rate Complete all information that is required in the interview form
Should the worker have questions about the prevailing wage rate, offer to provide this
information to the worker by mail, ask for mailing address.
10.3 Jobsite Notices and Postings
While on the jobsite conducting worker interviews, staff should verify that the required notices
have been posted in an easily accessible place.
Pursuant to California Code of Regulations §16429(b), a project subject to a Labor Compliance
Program must post a notice stating that the project is subject to an approved Labor Compliance
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Program that includes contact information for the Labor Compliance Officer. Staff should provide
the posting on behalf of the City of Ukiah.
According to California Labor Code §207, employers must also conspicuously post at the place of
work or where employees may see it coming from or going to their places of work or at the office
or nearest agency for payment kept by the employer, a notice specifying the regular pay days and
the time and place of payment.
Additionally, California Labor Code §1773.2 states that a copy of the prevailing wage
determination for each craft, classification or type of worker needed to execute the contract must
be posted at each jobsite.
10.4 Field Investigation Notes
Upon evidence of questionable compliance activities, a Field Investigation Notes form shall be
completed. The form includes field notes, which is a description of the observed event,
contractor(s) involved, and workers affected.
The Field Investigation Notes form may also be used for documenting all contractors that are
present at the jobsite when on-site interviews are being conducted.
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11 Worker Complaints
In addition to monitoring all certified payroll records provided by the contractors, worker
complaints of underpayment of prevailing wage rates must be investigated. Employees will be
informed that the filing of the complaint is confidential, and that his or her identity will be
disclosed to the contractor or subcontractor only after an investigation has occurred and only
within the context of an audit worksheet.
Once notified of a complaint, a written acknowledgement that the complaint has been received
must be sent promptly to the complaining party and a copy of the acknowledgement should be
kept for the Agencies own records. The acknowledgement must state the name, mailing address
and telephone number of the staff member assigned to the complaint.
Within 10 days of receiving the complaint, the complaining party must be notified in writing of the
resolution or of the status of the complaint and the reason the complaint has not been resolved.
Further, the complaining party must be notified in writing at least once every 30 days of the status
of an unresolved complaint.
Occasionally, workers may learn that the project they are working on is subject to prevailing
wages and that they are being underpaid. Sometimes, workers may learn that they have been
underpaid after their work on the project is completed.
Investigations in such circumstances are handled as follows:
Tell the workers that they can submit a complaint to recoup wages owed. (The complaint
form is available in English, Korean, and Spanish; a sample English complaint form is
attached as Appendix D to this manual). Inform them of the prevailing wage rate for all
construction trade classifications in which they worked.
o Note that the DLSE shall keep confidential all information that may be used to identify
any employee who files a complaint, pursuant to Labor Code §1736.
If the worker is still employed on the project, ask the worker to keep a log from that date
forward along with all check stubs issued by the employer to accurately document all hours
worked and wages paid.
If an employee of the contractor reports the violation(s), staff will thoroughly investigate the
charge by interviewing the affected employee(s) and analyzing the submitted documents. If it is
determined that a violation has occurred, staff shall prepare a Public Works Audit Worksheet, to
be sent to the contractor.
The major components and tasks related to investigations of worker complaints are as follows:
Gather supporting documents from all available sources to analyze for authenticity
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o For apprentices, http://www.dir.ca.gov/das/das.html
o For training fund contributions, CAC-2 for the month, or confirmation of payments
received from the CAC website
o Trust Fund Reports
o Project Sign-In Sheets
o Employee Interview Sheets
o Timesheets
o Contractor’s Payroll Registers
o OCIP forms indicating the number of hours worked each month
o Copies of check stubs
o Interviewing workers or other available witnesses
Conduct a complete CPR audit and/or project audit
Review CPRs for errors, inconsistencies, discrepancies, falsification, misclassification,
under-reporting and any other omissions that render the records inaccurate where needed
by comparing the Inspector of Records daily log with all available records.
Compliance staff shall specifically advise workers of the following: “Willfully submitting
false information on the claim form(s) will result in the entire claim being rejected as not
credible.”
11.1 Third Party Complaints
On occasion, the Agency will receive complaints from a third party, such as a union or a contract
compliance organization. These must be responded to according to 8 CCR 16434(b).
Upon receipt of a written complaint alleging that a contractor or subcontractor has failed to pay
prevailing wages as required by the Labor Code, the Labor Compliance Program shall do all of the
following:
(1) Within 15 days after receipt of the complaint, send a written acknowledgment to the
complaining party that the complaint has been received and identifying the name, address, and
telephone number of the investigator assigned to the complaint;
(2) Within 15 days after receipt of the complaint, provide the affected contractor with the notice
required under Labor Code section 1775(c) if the complaint is against a subcontractor;
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(3) Notify the complaining party in writing of the resolution of the complaint within ten days after
the complaint has been resolved by the Labor Compliance Program;
(4) Notify the complaining party in writing at least once every 30 days of the status of a complaint
that has not been resolved by the Labor Compliance Program; and
(5) Notify the complaining party in writing at least once every 90 days of the status of a complaint
that has been resolved by the Labor Compliance Program but remains under review or in
litigation before another entity.
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12 Audit Findings and Results
12.1 Wage Violations
If a wage violation is identified, an audit letter and DIR Appendix B—Audit Worksheets—will
detail the violation(s) and the actions to be taken by the contractor to cure the violation(s),
including restitution amounts and deadlines.
12.2 Preparing a Determination
After the initial audit, all subsequent audits should begin by determining whether additional
information, documentation, clarification and wage restitutions from the previous audit have been
received.
If two or more audit letters have been sent to a contractor who is in violation, and the contractor
has not responded to the audits, nor presented mitigating evidence showing that a violation did
not occur, then it is incumbent on staff to prepare a determination for the Labor Commissioner,
detailing the nature of the violation and the evidence that was collected by staff.
A determination may be necessary when all attempts at a settlement with the violating contractor
have failed, and there are no other recourses for the resolution of the issue. At such a time, the
elements identified in the next section, Case Preparation, should be included in the determination,
which comprises the work and evidence obtained during the audit of the violating contractor.
12.3 Case Preparation
In preparing a case for additional review, either by the Agency or by the DLSE, the following
critical steps should be routinely applied in every prevailing wage violation case and particularly
for those cases that lead to the filing of a Notice of Withholding of Contract Payments. Each
individual audit needs a separate Audit file, with copies of all pertinent documents.
Prepare a written audit narrative that reflects the prevailing wage deficiencies and any
penalties to be assessed and the key information outlined in the “Audit File System” section
20.2 of this Manual. A sample template for a written audit narrative is included as an
attachment to this Manual.
If an underpayment of wages has been identified, the following actions must be taken by
the Agency:
o Verify that the Agency will withhold enough money to cover the wages and potential
penalties if the amount required to cover the wages and potential penalties has not
already been withheld.
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o Determine the extent of the underpayment
How many workers were affected?
How much is owed?
o Prepare the Audit Worksheet
o Notify the Contractor of the findings with a Wage Underpayment Letter
Requesting a Review of Forfeitures
o When a review of forfeitures from the Labor Commissioner is requested, a
determination must be prepared outlining the steps required by the California Code of
Regulations (Title 8, Chapter 8) §16437 (steps for requesting a review of forfeitures are
also included herein under Section 17 of this Manual). The Request for a Review of
Forfeitures must be served on the Labor Commissioner and the contractor or
subcontractor as soon as practicable after the violation has been discovered, and not
less than 30 days before the final payment, but in no event not less than 30 days before
the expiration of the limitations period set forth in Labor Code §1741. The following
items shall be included in the request for forfeiture submitted to the Labor
Commissioner:
Was the work accepted by the Agency? What was the date of acceptance
Was a valid notice of completion filed? If so, date of filing
Amount of funds/retention the Agency is holding
Any deadlines missed that would impede collection?
Provide evidence of violation in narrative form
Provide evidence that an audit or investigation occurred. [Include a copy of any
audit summary stating the amounts of unpaid wages and applicable penalties]
Provide evidence that the contractor and subcontractor were given the opportunity
to explain that there was no violation or that any violation was caused by a good
faith mistake and promptly corrected when brought to the attention of the
contractor or subcontractor
Include evidence that the contractor or subcontractor either did not correct the
violation or failed to provide evidence to change the position taken in the
determination
Where penalties are also included as part of the forfeiture and the contractor or
subcontractor has unsuccessfully contended that the violation was a result of a good
faith mistake and was promptly corrected, a short statement recommending
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assessment of the penalty amount pursuant to Labor Code Section 1775(a) should
be included
Where only wages are sought or a penalty of less than $200 per day is sought
because the contractor or subcontractor has successfully contended the violation
was a good faith mistake that was promptly corrected, the file should include
evidence as to the contractor or subcontractor’s knowledge of the obligation,
including the communication to the contractor of the obligation in the bid
invitations, at the pre-job conference agenda and records, and other notice given as
part of the process. Include a statement recommending penalties pursuant to Labor
Code Section 1775(a)
Detail any previous record of the contractor or subcontractor in meeting their
prevailing wage obligations
State whether the LCP has been granted approval on an interim or temporary basis
(§16425 or §16426) or whether extended approval (§16427) has been granted
o A copy of the determination is required to be served to the contractor or subcontractor
Response from Labor Commissioner
o Once a response is received regarding the disposition of this case, the contractor must
be notified of the findings
Additional Actions by Staff (See California Labor Code Sections 1771.6 (c) through
1771.6 (e))
o See the hearing process in the “Labor Commissioner Assessment and Review of
Assessment Process” in section 17.1 of this manual
o Distribution of checks to the affected workers
o Notice to Withhold - The Notice to Withhold will be issued within 5 days of receipt of the
Request for Forfeiture response by the Labor Commissioner or 35 days after tis submittal if
no response is received within 30 days of submission
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13 Notification
According to the California Labor Code (See California Labor Code 2007 Amendments § 16432(f)),
after staff determines violations of prevailing wages have occurred, staff shall notify the contractor
and affected subcontractor of the violation so as to resolve the wage deficiency prior to a
determination of the amount of forfeiture by the Labor Commissioner. Keeping contractors aware
of violations is integral to proceeding with forfeitures and/or withholding procedures.
The violation notification letter is sent to the contractor requesting documents as evidence of
payment of prevailing wages. If the contractor in question is not the prime contractor, a separate
letter is sent to the prime informing the contractor of the letter sent to the subcontractor. All
correspondence regarding audits, withholdings, assessments and forfeitures must be delivered via
first-class, certified U.S. mail, to the Prime Contractor and affected subcontractor (if applicable)
until the matter is resolved.
The contractor has 10 working days from the date of the letter to respond. Failure to respond will
result in a Notice of Non-Compliance issued to the prime contractor or to the Awarding Body, as
appropriate, informing them of sanctions to be imposed subject to California Labor Code Section
1776 (d) & (g).
If a Notice of Withholding is being sent, the Surety and/or Bonding company must also be
informed via first-class, certified U.S. mail. The contractor and affected subcontractor then have
30 days to submit exculpatory evidence that support the issue as a “good faith mistake.”
If, based upon the contractor's submission, it is concluded that the failure to pay the correct wages
was a good faith mistake, and there is no knowledge that the contractor and affected
subcontractor have a prior record of failing to meet their prevailing wage obligations, it shall not
be required to request of the Labor Commissioner for a determination of the amount of penalties
to be assessed under Labor Code §1775 if the underpayment of wages to workers is promptly
corrected and proof of such payment is submitted.
Pursuant to the California Code of Regulations §16432(f), for each instance in which a wage
deficiency is resolved in accordance with this regulation, staff shall maintain a written record of
the failure of the contractor or subcontractor to meet its prevailing wage obligation. The record
shall identify the public works project, the contractor or affected subcontractor involved, and the
gross amount of wages paid to workers to resolve the prevailing wage deficiency; and the record
shall also include a copy of the Audit prepared pursuant to along with any exculpatory information
submitted by the affected contractor.
When a subcontractor commits a violation, the prime contractor must be notified and informed of
his rights under Labor Code §1729.
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13.1 Notification to Third Party Agencies Regarding Requests for Documentation
Whenever a complaint is forwarded directly by an employee or other interested party (i.e. Union,
Third Party Compliance Agency, etc.), that alleges violations of the Labor Code or LCP with respect
to the project, an LCP must respond as detailed in 8 CCR 16434(b).
13.2 Public Payroll Records Requests
Members of the public have the right to request copies of contractors’ certified payroll records
from the Agency. (See Labor Code §1776(b)(3).) Such requests are commonly received from
unions, joint labor-management groups, and independent compliance organizations.
Procedures for Processing Public Requests for Certified Payroll Records
If a written CPR request is made which contains at least the following details: (1) The body
awarding the contract; (2) The contract number and/or description; (3) The particular job
location if more than one; (4) The name of the contractor; and:
1. If the records have been received:
a. Then, within 10 days of the receipt of the request: the requesting party will be provided an
acknowledgment of their request; estimate the reproduction cost, and estimate a date and time
that the records will be made available and send by Certified Mail.
i. Upon receipt of reproduction costs from a requesting party who identifies themselves an
agent of a joint labor-management committee:
1. Redact worker’s names and social security numbers from Certified Payroll Records
2. Notify the requesting party that the records are available.
ii. Upon receipt of reproduction costs from a requesting party (who does not identify
themselves as a joint labor-management committee)
1. Redact worker’s names, addresses, and social security numbers from Certified
Payroll Records
2. Notify the requesting party that the records are available.
2. If the records have not been received:
a. Then, within 10 days of the receipt of the request: the requesting party will be provided an
acknowledgment of their request; send a request for certified payroll records to the contractor
responsible for those records pursuant to 8 CCR 16400(d) and provide a copy of the request to
the original requesting party
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i. Non-response from a contractor after 10 days is a violation of 8 CCR 16400(d)(2)(b) and
should follow the delinquent document withholding process found in Section 7 of this
manual.
ii. Upon receipt of records from the contractor: provide the requesting party a notification
that the requested documents are available, estimate reproduction cost, and estimate a
date and time that the records will be made available
1. Upon receipt of reproduction costs from a requesting party who identifies themselves
an agent of a joint labor-management committee
a. Redact worker’s names and social security numbers from Certified Payroll
Records
b. Notify the requesting party that the records are available.
2. Upon receipt of reproduction costs from a requesting party (who does not identify
themselves as a joint labor-management committee)
a. Redact worker’s names, addresses, and social security numbers from Certified
Payroll Records
b. Notify the requesting party that the records are available.
Labor Code §1776(e)
Any copy of records made available for inspection as copies and furnished upon request to the
public or any public agency by the awarding body, the Division of Apprenticeship Standards, or
the Division of Labor Standards Enforcement shall be marked or obliterated to prevent disclosure
of an individual's name, address, and social security number. The name and address of the
contractor awarded the contract or the subcontractor performing the contract shall not be marked
or obliterated. Any copy of records made available for inspection by, or furnished to, a joint labor-
management committee established pursuant to the federal Labor Management Cooperation Act
of 1978 (29 U.S.C. Sec. 175a) shall be marked or obliterated only to prevent disclosure of an
individual's name and social security number. A joint labor management committee may maintain
an action in a court of competent jurisdiction against an employer who fails to comply with
Section 1774. The court may award restitution to an employee for unpaid wages and may award
the joint labor management committee reasonable attorney's fees and costs incurred in
maintaining the action. An action under this subdivision may not be based on the employer's
misclassification of the craft of a worker on its certified payroll records. Nothing in this
subdivision limits any other available remedies for a violation of this chapter.
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Labor Code §1776(j)
The director shall adopt rules consistent with the California Public Records Act (Chapter 3.5
(commencing with Section 6250) of Division 7 of Title 1 of the Government Code) and the
Information Practices Act of 1977 (Title 1.8 (commencing with Section 1798) of Part 4 of Division
3 of the Civil Code) governing the release of these records, including the establishment of
reasonable fees to be charged for reproducing copies of records required by this section.
Government Code 6253(b) [see Labor Code §1776(i)]
Except with respect to public records exempt from disclosure by express provisions of law, each
state or local agency, upon a request for a copy of records that reasonably describes an identifiable
record or records, shall make the records promptly available to any person upon payment of fees
covering direct costs of duplication, or a statutory fee if applicable. Upon request, an exact copy
shall be provided unless impracticable to do so.
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14 N/A
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15 Issue Resolution & Restitution Payments
15.1 Restitution Check Payment
It is preferred that the contractor not make payments for wage restitutions directly to the affected
worker, because it is more difficult to ensure that the payment was made and no kickbacks or
other arrangements were made; however, restitution payments are sometimes paid directly to the
affected workers. If the contractor made restitution payment directly to the worker, the
contractor must submit copies of cancelled checks as proof before the issue is closed.
1 Make a copy of all submitted restitution checks.
2 Verify that the amounts on the check match the underpayment amounts (minus standard
tax deductions).
3 Sending checks to workers: Send a letter to the worker’s last known address that
summarizes the issue and requests that the worker contact staff to collect their check. Note: the
letter should contain a sentence in Spanish asking them to contact staff to collect money due to
them.
When the worker calls, have them verify their social security number. Once verified, the check can
either be mailed to them or they can pick it up. If the restitution check is mailed, make a copy of
the mailed letter.
If the check is picked up, the worker must provide a copy of their identification card for proof of
pick-up; a copy is made of the identification card for the file.
If a worker cannot be located, or a mailed letter is returned as undeliverable, or a worker does not
contact the office to collect their check, the check may be deposited with the Unclaimed Wages
Account with the California Labor Commissioner’s office. Create a listing of all workers whose
checks remain unclaimed. Within 60 days of receipt of the restitution checks from the contractor,
send a letter to all workers whose addresses were verified. In the letter, inform the workers that
their co-workers’ restitution checks have not been claimed and request that they contact staff if
they know the contact information (i.e. phone number or new address) for any of the listed co-
workers whose checks remain unclaimed. After a “diligent effort” is made, then the funds should
be turned over to the state. Transmittal should include the employee’s name, last known address,
social security number and a brief reference to the project, employer and basis of wage
calculation.
4. Sending checks to CAC:
• Identify the project, the Agency and affected contractor
• State who monitored and enforced the LCP on the project
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• State the period of violation
Attach a CAC-2; obtain one from the contractor if it was not attached to the restitution
payment.
Mail the letter to: State of California, Department of Industrial Relations, California
Apprenticeship Council, P. O. Box 420603, San Francisco, CA 94142
• Cc the affected contractor, the prime, and the Agency
• Make copies of all correspondence for the project file.
5. Sending checks to trust funds:
• Identify the project and affected contractor
• State who monitored and enforced the LCP on the project
• State the period of violation
• Attach a copy of the audit worksheet
• Cc the affected contractor, the prime, and the Agency
• Make copies of all correspondence for the project file.
6. Sending unclaimed restitution checks to the DIR:
• Identify the project, and affected contractor
• State who monitored and enforced the LCP on the project
• State the violation and why the checks are being sent to the DIR. Include worker’s name,
last known address and social security number
Mail the letter to: Department of Industrial Relations, Attn: Public Works Unpaid Wage
Fund, 2031 Howe Avenue, Suite 100, Sacramento, CA 95825
• Make copies of all correspondence for the project file.
15.2 Contractor Submits Mitigating Evidence
Upon receiving notice of an apparent violation, the contractor has 10 working days from the date
of the letter to submit mitigating evidence. Mitigating evidence is anything that can substantiate
that prevailing wages were paid for all workers and all hours worked on the project. Any
mitigating evidence shall be thoroughly reviewed to determine if the compliance issue still
persists.
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If all issues identified in the audit are rectified upon review of the mitigating evidence, an audit
closeout letter shall be issued.
If only partial issues are mitigated, the remaining issues will be addressed in a separate audit
denoted by placing a letter of the alphabet after the audit number.
15.3 Non-Responsive Contractor
Upon receiving the notice of an apparent violation, the contractor has 10 working days from the
date of the letter to attempt to resolve the issue. If no response is received within 10 days, a
second letter shall be issued.
A record remaining uncorrected for ten (10) days after the awarding body has given the
contractor notice of inaccuracies/omissions detected by audit or record review; provided,
however, that prompt correction will stop any duty to withhold if such inaccuracies/omissions do
not amount to 1 percent of the entire certified weekly payroll in dollar value and do not affect
more than half of the persons listed as workers employed on that certified weekly payroll, as
defined in Labor Code Section 1776 and Title 8 CCR Section 16401. Prompt correction will stop
any duty to withhold if such inaccuracies are de minimus.
Once the Agency withholds the underpayment and penalty amounts, if the contractor remains
non-responsive, the Agency should make the restitution checks payable to the affected parties and
shall retain the penalty amount.
15.4 Issue Follow-Up
After an apparent issue has been identified, and after an audit letter has been sent, staff should
note the letter’s due date for a response in a Letter Log.
Prior to the due date for the contractor’s response, send a notice to the contractor (e-mail or fax)
reminding them that a response is due for the pertaining audit.
15.5 Issue Closeout
Once an audit is completely resolved through the submittal of mitigating evidence or restitution
payments, an issue closeout letter shall be issued. The closeout letter should state the project,
affected contractor, and briefly describe the issue and how it was resolved. If restitution checks
were submitted to resolve the issue, copies of the checks should be attached to the closeout letter.
The issue closeout letter should be sent to the affected contractor, its prime contractor, the
Agency, and any third party compliance agencies involved in the audit (e.g. unions, Center for
Contract Compliance).
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16 Settlement Authority
Language which grants settlement authority is provided by California Code of Regulations Section
16439(c) of the California Code of Regulations, which states:
• "Except in cases where the Labor Commissioner has intervened pursuant to subpart (b),
the Labor Compliance Program shall have the authority to prosecute, settle, or seek the
dismissal of any Notice of Withholding of Contract Payments issued pursuant to Labor
Code section 1771.6 and any review proceeding under Labor Code 1742, without any
further approval by the Labor Commissioner."
• "Whenever a Labor Compliance Program settles in whole or in part or seeks and obtains
the dismissal of a Notice of Withholding of Contract Payments or a review proceeding
under Labor Code section 1742, the Labor Compliance Program shall document the
reasons for the settlement or request for dismissal and shall make the documentation
available to the Labor Commissioner upon request."
In addition to these proposed regulations, settlement is currently encouraged, and is considered to
be part of best practices within the Labor Compliance field. Reaching a successful settlement
allows workers to receive restitution sooner.
Settlement may occur before a Request for Approval of Forfeiture and Penalties is sent to the
Labor Commissioner, and may occur as early as the contractor or subcontractor is informed of the
violations found pursuant to an audit. In cases where a successful settlement cannot be reached,
the LCP will then send a Request for Approval of Forfeitures and Penalties to the Labor
Commissioner.
The final settlement agreement should include the following:
• An Admission of Violation by the contractor or subcontractor
• A statement that the "Notice of Withholding" is "satisfied," and not "released"
• Language preventing the agreement from being confidential, allowing the agreement to be
introduced as evidence of prior violation at a subsequent Request for Review Hearing.
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17 Assessment Process
17.1 Labor Commissioner Assessment and Review of Assessment Process
If the Labor Commissioner determines that there has been a violation, the Labor Commissioner
will issue a civil wage and penalty assessment to the contractor or subcontractor or both. The
assessment is sent to the author of the determination. The assessment will be sent in writing via
first-class and certified mail to the contractor, subcontractor, and the Agency within 18 months
after the filing of a valid notice of completion in the county recorder’s office, or within 18 months
following the acceptance of the public work, whichever occurs last. The assessment will contain a
description of the nature of the violation; the amount of wages, penalties, and forfeitures due; and
the basis of the assessment. If the assessment is served after the 18 month period and if the
Agency has not yet made full payment to the contractor, the assessment is valid up to the amount
of the funds retained (See California Labor Code Section 1741.).
The affected contractor may obtain review of a civil wage and penalty assessment if the contractor
sends a written Request for Review to the office of the DIR within 60 days. If the contractor does
not meet the deadline, the assessment is final and may be converted to a legal judgment against
the offending contractor and any prime contractor on the project. (See California Labor Code
Section 1742)
Upon receipt of a contractor’s request, a hearing shall be scheduled with the Director within 90
days.
Note: Staff do not have the authority to waive the 90 day hearing request period.
At the hearing, the contractor shall have the burden of proving that the basis for the civil wage and
penalty assessment is incorrect.
Within 45 days of the conclusion of the hearing, the director shall issue a written decision
affirming, modifying, or dismissing the assessment. The decision will contain a notice of findings,
findings, and an order will be served on all parties. Within 15 days of the issuance of the decision,
the director may reconsider or modify the decision to correct an error. Clerical errors may be
corrected at any time.
Both the Labor Commissioner and the Contracting Agency shall afford the contractor or
subcontractor a meeting to settle a dispute regarding the notice, if the contractor or subcontractor
delivers the request within 30 days of the service of the notice. Nothing during the meeting is
subject to discovery in any administrative or civil proceeding; only the final agreement may be
admissible (See California Labor Code Section 1742.1).
During the hearing process, any communication (sent via fax, e-mail, letter, etc.) with the Hearing
Officer must also be transmitted to all affected parties—the client, the contractor, subcontractor, if
any, and their respective attorneys. It is of utmost importance that all parties are appropriately
informed to prevent any complications during this important process.
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During the hearing process the following sections of the California Code of Regulations (Title 8,
Chapter 8, Subchapter 6) are important considerations to take into account:
Section 17221 Rule (21) – Opportunity for early settlement; Evidence, hearsay,
accusations
No evidence of anything said or any admission for the purpose of, or in the course of, or
pursuant to, such a settlement meeting shall be admissible or subject to discovery in any
administrative or civil proceeding.
Section 17234 Rule (34) – Evidence by (worker) Affidavit or Declaration
The other party must be notified if we elect to use witness statements when the witness will
not be testifying or will not be available to be cross examined. Rule 34 states that at any time
20 or more days prior to commencement of a hearing, a Party may serve upon all other Parties
a copy of any affidavit or declaration which the proponent proposes to introduce in evidence,
together with a “notice” as provided below (in quotes). Unless another Party, within 10 days
after service of such notice, delivers to the proponent a request to cross-examine the
affiant/declarant, the right to cross examine such affiant/declarant is waived and the
affidavit/declaration, if introduced in evidence, shall be given the same effect as if the
affiant/declarant has testified in person.
The “notice” shall be worded in the following form with the appropriate information inserted
in the places enclosed by brackets:
“The accompanying affidavit or declaration of [name of affiant /declarant] will be introduced as
evidence at the hearing in [Title and other information identifying the proceeding]. [Name of
affiant /declarant] will not be called to testify orally, and you will not be entitled to question the
affiant or declarant unless you notify [name of the proponent, Representative, agent, or attorney]
at [address] that you wish to cross examine the affiant/declarant. Your request must be mailed or
delivered to [name of the proponent, Representative, agent, or attorney] on or before [specify
date at least 10 days after anticipated date of service of this notice on other parties].”
If a timely request is made to cross-examine an affiant/declarant under this Rule, the burden of
producing that witness at the hearing shall be upon the proponent of the witness. If the
proponent fails to produce the witness, the affidavit or declaration may be introduced in
evidence, but shall be given only the same effect as other hearsay evidence under Rule 44
[Section 17244], which states that hearsay evidence is admissible but shall not be sufficient in
itself to support a finding unless it either would be admissible over objection in a civil action or
no Party raises an objection to such use. Unless previously waived, an objection or argument
that evidence is insufficient in itself to support a finding because of its hearsay character shall
be timely if presented at any time before submission of the case for decision.
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17.2 Civil Proceedings and Request for Review Processes
This section provides additional detail on hearings and civil proceedings described in Section
17.2.6 of this manual. This section will assist staff through the Assessment / Civil Proceeding
process, reviewing the process and necessary steps undertaken when an issue is escalated to the
level where the DLSE and Office of the Director Legal Unit involvement in the case becomes
necessary. Staff should be aware of the timelines, requirements, regulations and nuisances
involved in civil proceedings.
17.2.1 Preparing a Request for Review of Forfeitures
Every Request for Review of Forfeitures should be fully reviewed before continuing on to the next
step.
Body Summary
In the main body of the narrative, identify the contractor violations, how you determined there
violations and what you did to substantiate your claim. In this section, it is important to reference
supporting information relied upon to make your determination (Reports, Daily Reports, Time
Sheets, etc.).
Amount of Wages, Penalties Due
This section substantiates the dollar amounts of the audit, the penalty amounts that are being
requested to be approved and any other amounts due by the contractor on the project. (Training
funds, travel and subsistence, etc.). Describe how each amount was arrived at and why the
contractor owes the restitution and to whom they are owed. Penalties are generally assessed on
contractors who have a previous history of noncompliance, and this history should be considered
when determining penalty amounts.
Statute
This is a critical aspect of an assessment. According to §1741 an LCP must request an Approval of
Forfeitures not later than 18 months after the filing of a notice of completion or not later than 18
months after acceptance of the public work, whichever occurs last. Service of the assessment shall
be completed pursuant to Section 1013 of the Code of Civil Procedure by first-class and certified
mail to the contractor, subcontractor, and awarding body. Any case filed outside of 1741
regulations is considered barred by statute.
This is the trigger that starts the clock running on statute limitations. Once a notice of completion
is filed, an LCP is limited to 1741 statute for issuing a Notice to Withhold.
Description of the work Performed/ Determination
List the County where the project was located in and the type of construction involved. If the
contractor is a subcontractor, list the type of work being performed by the subcontractor. In this
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section, list the wage determination used including the bid date, classification of work and why
this determination was applied.
Any wage restitution made by the contractor
If the contractor has made wage restitution, please list. In detail, discuss the contractor’s
responsiveness to the audit prior to the escalation of the issue into the review process.
Recommendation
The determination should be closed with a recommendation of the approval of forfeitures in the
amounts determined to be due. The Deputy Labor Commissioner will either approve, modify or
deny the Request for Forfeiture. The Labor Commissioner will issue its decision within 30 days
of the submission of the Request for Forfeiture. If the Labor Commissioner’s office does not issue a
finding within 30 days after submission, the Awarding Body may consider its Request for
Forfeiture “approved” without modification.
Statute of Limitations for Submitting a Case for Review
The Notice to Withhold shall be served not later than 18 months after the filing of a valid notice of
completion in the office of the county recorder in each county in which the public work or some
part thereof was performed, or not later than 18 Months after acceptance of the public work,
whichever occurs last. Service of the assessment shall be completed pursuant to Section 1013 of
the Code of Civil Procedure by first-class and certified mail to the contractor, subcontractor, and
the Contracting Agencies project manager. The assessment shall advise the contractor and
subcontractor of the procedure for obtaining review of the assessment. The Labor Commissioner
shall, to the extent practicable, ascertain the identity of any bonding company issuing a bond that
secures the payment of wages covered by the assessment and any surety on a bond, and shall
serve a copy of the assessment by certified mail to the bonding company or surety at the same
time service is made to the contractor, subcontractor, and the Contracting Agencies project
manager. However, no bonding company or surety shall be relieved of its responsibilities because
it failed to receive notice from the Labor Commissioner.
17.2.2 Requesting a Review of Forfeitures from the Labor Commissioner
Determinations
When, after an investigation, it is determined that a contractor failed to pay to its workers
prevailing wage rates, the Contracting Agency can seek a review from the Labor Commissioner
that allows the Contracting Agency to recoup penalties from the contractor/ subcontractor for
violations of California Labor Code relating to the underpayment of wages and for overtime
violations. A Request for Review of forfeitures (wages and penalties) can be submitted by any
contractor determined to be in violation. However, this process is for the most part reserved for
cases either considered severe, a contractor unwilling to work with the LCP at resolving the issues,
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or at the request of the Contracting Agency, the Labor Commissioner’s office and/or Labor
Management Committees.
Summary:
A request for approval of forfeitures is an assessment where the Labor Compliance Program,
acting under the authority granted to it by the state of California, seeks enforcement against a
contractor believed to be in violation of payment of prevailing wage rates. Prior to collecting
money from the contractor for wages and or penalties, the Labor Compliance Program must
request an approval of forfeitures from the Division of Labor Standards Enforcement when
outstanding wages and penalties exceed $1,000. A detailed narrative must be submitted to the
DLSE requesting approval of forfeitures.
17.2.3 Request for Forfeiture
Assessment Payments shall be in writing and shall include the following information:
A description of the nature of the violation and basis for the Assessment or Notice in
narrative form.
The amount of wages, penalties, and forfeitures due, including a specification of amounts
that have been or will be withheld from available contract payments, as well as all
additional amounts that the Enforcing Agency has determined are due, including the
amount of any liquidated damages that potentially may be awarded under Labor Code
section 1742.1.
Whether any deadlines have expired that might impede the collection of wages. Whether or
not a Notice of Completion of Project has been accepted by the Contracting Agency and has
been filed in the County Recorder’s office.
A brief description of the project, the county in which the work was performed and the
scope of work of the contractor.
A summary of the investigation, including a detailed timeline of events. Describe the
evidence in detail and whether or not the contractor made an effort to correct the
discrepancy.
The Findings of the investigation including the violations identified, corrective actions
taken by the contractor and any resolutions prior to submittal.
The Recommendations. A determination of whether or not the violation by the contractor
was because of a clerical error or was it an attempt by the contractor at defaulting the
wages due to workers. This section will list the penalties that are recommended for the
violations committed.
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A sample of a Request for Review of forfeitures form can be found in section 23 of this
manual.
17.2.4 Notice of Withholding of Contract Payments
After an approval of Forfeitures has been received the awarding body must issue a notice of
withholding of contract payments. The notice advises the contractor that a Request for Review of
Forfeitures has been received and approved and that the Labor Commissioner has agreed with the
investigation findings.
The Withholding of Contract Payments or a notice assessing penalties under Labor Code section
1776 shall be served on the contractor and subcontractor, if applicable, by first class and certified
mail pursuant to the requirements of Code of Civil Procedure section 1013. A copy of the notice
shall also be served by certified mail on any bonding company issuing a bond that secures the
payment of the wages covered by the Assessment or Notice and to any Surety on a bond, if the
identities of such companies are known or reasonably ascertainable. The identity of any Surety
issuing a bond for the benefit of an Awarding Body as designated obligee, shall be deemed "known
or reasonably ascertainable," and the Surety shall be deemed to have received the notice required
under this subpart if sent to the address appearing on the face of the bond.
The Notice of Withholding of Contract Payments shall be in writing and shall include the following
information:
A description of the nature of the violation and basis for the Assessment or Notice In
(Narrative Form.)
The amount of wages, penalties, and forfeitures due, including a specification of amounts
that have been or will be withheld from available contract payments, as well as all
additional amounts that the Enforcing Agency has determined are due, including the
amount of any liquidated damages that potentially may be awarded under Labor Code
section 1742.1.
The name and address of the office to whom a Request for Review may be sent.
Information on the procedures for obtaining review of the Assessment or Withholding of
Contract Payments
Notice of the Opportunity to Request a Settlement Meeting under Rule 21 [Section 17221]
below; and the following statement which shall appear in bold or another type face that
makes it stand out from the other text.
An affected contractor or subcontractor may obtain review of a civil wage and penalty assessment
under this chapter by transmitting a written request to the office of the Labor Commissioner that
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appears on the assessment within 60 days after service of the assessment. If no hearing is
requested within 60 days after service of the assessment, the assessment shall become final.
A Notice to Withhold shall be served on the contractor and subcontractor, if applicable, by first
class and certified mail pursuant to the requirements of Code of Civil Procedure section 1013. A
copy of the notice shall also be served by certified mail on any bonding company issuing a bond
that secures the payment of the wages covered by the Assessment or Notice and to any Surety on a
bond, if the identities of such companies are known or reasonably ascertainable. The identity of
any Surety issuing a bond for the benefit of an Awarding Body shall be deemed "known or
reasonably ascertainable," and the Surety shall be deemed to have received the notice required
under this subpart if sent to the address appearing on the face of the bond.
In summary, it is important to serve the notice of withholding of contract payments on all parties
via Certified Mail. In addition, complete the attached Proof of Service form and certify sending it to
all of the parties. Proof of service is critical to the case.
17.2.5 Contractor Appeal Rights
The Contractor’s Request for Review or of a Notice of Withholding shall be transmitted in writing
to the Enforcing Agency within 60 days after service of the Notice. Failure to request review
within 60 days shall result in the Notice of Withhold becoming final and not subject to further
review under these Rules.
A Request for Review shall be deemed filed on the date of receipt mailing, as determined by the
U.S. Postal Service postmark date on the envelope or the overnight carrier's receipt in accordance
with Rule 03(b) [Section 17203(b)] above, or the date of receipt by the designated office of the
Enforcing Agency, whichever is earlier.
A Request for Review shall clearly identify the Notice from which review is sought, including the
date of the Notice, or it shall include a copy of the Notice as an attachment. A Request for Review
shall also set forth the basis upon which the Assessment or Notice is being contested. A Request
for Review shall be liberally construed in favor of its sufficiency; however, the Hearing Officer may
require the Party seeking review to provide a further specification of the issues or claims being
contested and a specification of the basis for contesting those matters.
Once approval has been received, the Agency shall serve on the contractor bonding company with
a copy of the approval of forfeitures and a Notice of Withholding of Progress Payments.
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17.2.6 Hearings/Civil Proceedings
Pre-Hearing Activities
In the event that the contractor requests a hearing, staff must make available all information that
was used to arrive at the assessment. Staff also needs to prepare the presentation of the case and
make sure that all proper procedural steps were followed.
Upon receipt of a timely request, a hearing shall be commenced within 90 days before the
Director, who shall appoint an impartial hearing officer possessing the qualifications of an
administrative law judge pursuant to subdivision (b) of Section 11502 of the Government Code.
The request can be made through The Contracting Agency or through the Office of the Director
Legal Unit. A hearing officer shall be an employee of the Department, but shall not be an employee
of the Division of Labor Standards Enforcement.
Review of Evidence to be used at a Hearing
The contractor or subcontractor shall be provided an opportunity to review evidence to be
utilized by the Labor Commissioner at the hearing within 20 days of the receipt of the written
request for a hearing. Any evidence obtained by the Labor Commissioner subsequent to the 20-
day cutoff shall be promptly disclosed to the contractor or subcontractor. Even if the contractor
did not ask to review evidence, it should be implied and therefore sent to the contractor within 20
days.
The contractor or subcontractor shall have the burden of proving that the basis for the civil wage
and penalty assessment is incorrect. The assessment shall be sufficiently detailed to provide fair
notice to the contractor or subcontractor of the issues at the hearing.
Pre-Hearing Conferences/ Motions
After a hearing officer has been assigned, the hearing officer will send notice to all the parties
informing them of the pre-hearing requirements and will schedule a pre-hearing conference to see
where all parties stand in the resolution of their issues. The hearing officer will also seek that all
parties agree to the pre-hearing stipulations.
Stipulations
1. Do all parties agree that the subject project is a public works project?
2. Do all parties agree that the Notice of Withholding was served in a timely manner?
3. Has the enforcement agency made available all documents that will be used at a hearing?
4. Has any wage restitution taken place?
There is not an obligation to respond to any of the pre-hearing stipulations at this time and all
parties can put those off until the hearing. As a general rule, we stipulate to all but Question 4
which is usually a no.
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Pre-Hearing Orders
The Hearing Officer will request that all parties exchange the following Pre-Hearing documents.
1. Witness List
At least three weeks prior to the hearing, the parties are to exchange a list of witness they
anticipate to call at the hearing. This would include workers, inspectors, workers from other
contractors and representatives of The Contracting Agency. Serve on all contractors in
accordance with Section 1013 of the Code of Civil Procedure.
2. Exhibit List
At least two weeks prior to the hearing, the parties are to exchange a list of exhibits they
anticipate to use at a hearing. This would include timesheets, inspector reports, CPRs, sign in
sheet, check stubs etc. Serve on all contractors in accordance with Section 1013 of the Code of
Civil Procedure.
3. Joint Statement
At least one week prior to the hearing, the parties should finalize a joint statement that
outlines the key issues each party has with regards to the notice. A Labor Compliance Program
is required to list its findings from the assessment/determination. Serve on all contractors in
accordance with Section 1013 of the Code of Civil Procedure.
Waivers
In order for a waiver of 90 days, all parties need to be in agreement. Granting a waiver means the
case can drag on for a long period of time. In the interest of all parties involved, staff cannot grant
a waiver.
Settlement Meetings
Prior to a Hearing, a contractor or subcontractor may request a settlement meeting pursuant to
Labor Code section 1742.1(c) and may request review of a Labor Compliance Program
enforcement action in accordance with Labor Code sections 1771.6(b) and 1742 and the
regulations found at Title 8 C.C.R. sections 17201-17270. The Labor Compliance Program shall
have the rights and responsibilities of the Enforcing Agency (as defined in 8 C.C.R. section
17202(f)), in responding to such a request for review, including but not limited to the obligations
to serve notices, transmit the Request for Review to the hearing office, and provide an opportunity
to review evidence in a timely manner, to participate through counsel in all hearing proceedings,
and to meet the burden of establishing prima facie support for the Notice of Withholding of
Contract Payments.
If a contractor or subcontractor seeks review of a Labor Compliance Program enforcement action,
the Labor Commissioner may intervene to represent the Contracting Agency, or to enforce
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relevant provisions of the Labor Code consistent with the practice of the Labor Commissioner, or
both.
Modifying an Assessment
Section 17226 of the California Code of Regulations allows the Contracting Agency the right to
make a motion to modify or amend its Notice of Withhold in the event that new evidence (newly
discovered) leads the LCP to conclude that a change to the withholding amount is merited. An
example would be a new worker coming forward or perhaps additional paycheck stubs were
made available which show the affected workers were paid some of the wages that were identified
as owed in the audit. The hearing officer has the right to either accept or deny such a motion. Valid
cause is mandatory.
Early Settlement
In the event that a settlement is reached, if requested, an agreement will be prepared and
executed where all parties agree in principal to the terms of the agreement. At this time, wage
restitution will be collected in the settlement amounts for the workers and collect releases from
the workers. It is recommended that a letter be sent to the Hearing Officer requesting that the
Hearing Officer retain jurisdiction for an additional 60 days while the obligations of the settlement
agreement are met.
Hearing Outcomes/Final Order
Within 45 days of the conclusion of the hearing, the Director shall issue a written decision
affirming, modifying, or dismissing the assessment. The decision of the Director shall consist of a
notice of findings, findings, and an order. This decision shall be served on all parties and The
Contracting Agency pursuant to Section 1013 of the Code of Civil Procedure by first-class mail at
the last known address of the party on file with the Labor Commissioner. Within 15 days of the
issuance of the decision, the Director may reconsider or modify the decision to correct an error,
except that a clerical error may be corrected at any time.
Rule 26 Letter
Once a case has been resolved and DIR involvement is no longer required, a Rule 26 motion should
be filed with the hearing officer (8 CCR Section 17226) declaring that the claim for wages,
damages or penalties has been satisfied, requesting that the hearing be taken off the Calendar, and
requesting rescission of the Notice of Withholding. The Contracting Agency must also be notified
of the completion of the case.
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17.3 Conditions in Which the Contracting Agency May Withhold Payments
The Contracting Agency may withhold contract payments in the following instances:
1. When payroll records are delinquent or inadequate, the withholding of contract payments
is required by Labor Code §1771.5(b)(5) (See California Code of Regulations §16435(e)).
a. It does not require the prior approval of the Labor Commissioner;
b. The Contracting Agency shall only withhold those payments due or estimated to be due
to the contractor or subcontractor whose payroll records are delinquent or inadequate,
plus any additional amount that staff has reasonable cause to believe may be needed to
cover a back wage and penalty assessment against the contractor or subcontractor whose
payroll records are delinquent or inadequate;
c. Provided that, in most cases, a contractor shall be required in turn to cease all payments
to a subcontractor whose payroll records are delinquent or inadequate until staff provides
notice that the subcontractor has cured the delinquency or deficiency.
d. Penalties shall be assessed under Labor Code §1776(h) for failure to timely comply with
a written request for certified payroll records. The assessment of penalties under Labor
Code §1776(h) does require the prior approval of the Labor Commissioner under CCR
§16436. If a subcontractor fails to comply with prevailing wage law, the prime contractor is
not subject to a penalty assessment.
2. When, after investigation, it is established that underpayment or other violations have
occurred, withholdings require the prior approval of the Labor Commissioner under CCR
§16436 and §16437.
3. To cure labor compliance violations (see 8 CCR §16435).
4. For non-payment of the prevailing wage rate or other employer payments (See California
Labor Code Sections 1771 and 1773.1).
5. For failure to maintain payroll records in accordance with Labor Code §1776.
6. For paying apprentice wage to a worker who is not a registered apprentice.
Except as otherwise provided by agreement, only contracts under a single master contract,
including a Design-Build contract, or contracts entered into as stages of a single project, may be
the subject of withholding (See California Labor Code Sections 1771 and 1773.1).
A decision to withhold is typically followed by a contractor’s rebuttal. If the contractor is unable
to provide the necessary information or if the contractor does not provide the necessary
information by the predetermined due date, then the payment is withheld (See California Labor
Code Sections §1742 (a) & (b) for timeframes).
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NOTE: The Labor Commissioner may intervene to represent the Contracting Agency (See
California Labor Code Section 1771.6 (b)).
The Contracting Agency should hold disbursements until the final order or the expiration of the
time period for seeking review of the notice of withholding. Wage claims shall be satisfied prior to
the amount being applied to penalties. If insufficient money is recovered to pay each worker in
full, the available funds shall be prorated among all workers. Wages for workers who cannot be
located shall be placed in the Industrial Relations Unpaid Wage Fund. Penalties shall be paid into
the General Fund of The Contracting Agency.
17.4 Payments to be withheld or Forfeitures to be imposed by the City of Ukiah
Upon notification by staff of a breach of the labor compliance requirements, the Contracting
Agency may impose forfeitures.
The forfeiture includes the amount of the underpayment and any applicable penalties assess
under California Labor Code Sections 1775, 1776 and 1813 (See California Labor Code 2006 and
2007 Amendments Section §16436(a) and §16436(b)). If the total forfeitures is less than
$1,000.00, the forfeitures shall be deemed approved by the Labor Commissioner if the following is
received (8 CCR § 16436(b)):
1. The Notice of Withholding of Contract Payments authorized by California Labor Code §
1771.6(a)
2. An audit as defined in the California Code of Regulations § 16432(e)
3. A brief narrative that includes:
a. The Bid Advertisement Date
b. A summary of the nature of the violation
c. An explanation of the basis of the underpayment
d. A listing of factors considered in determining the assessment of penalties, if any, under
California Labor Code § 1775
17.5 Determining Amount of Forfeiture by the Labor Commissioner
In accordance with CCR §16437, where a determination of the amount of forfeiture is requested,
the request shall include a file or report to the Labor Commissioner which contains at least the
information specified in subparts (1) through (9) below. A “Request for Approval of Forfeiture”
form is included as an attachment to this Manual.
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1. Whether the public work has been accepted by The Contracting Agency and whether a
valid notice of completion has been filed, the dates if any when those events occurred, and the
amount of funds being held in retention by the Awarding Body;
2. Any other deadline which if missed would impede collection;
3. Evidence of violation, in narrative form;
4. Evidence of violation obtained under CCR §16432 and a copy of the Audit prepared in
accordance with CCR §16432(e) setting forth the amounts of unpaid wages and applicable
penalties;
5. Evidence that before the forfeiture was sent to the Labor Commissioner: (a) the contractor
and subcontractor were given the opportunity to explain why there was no violation, or that
any violation was caused by good faith mistake and promptly corrected when brought to the
contractor or subcontractor’s attention, and (b) the contractor and subcontractor either did
not or failed to convince staff of its position;
6. Where not only wages but also a penalty is sought as part of the forfeiture, and the
contractor or subcontractor has unsuccessfully contended that the cause of violation was a
good faith mistake that was promptly corrected when brought to the contractor or
subcontractor’s attention, a short statement should accompany the proposal for a forfeiture,
with a recommended penalty amount pursuant to Labor Code Section 1775(a);
7. Where only wages or a penalty less than $50 per day as part of the forfeiture is sought
because the contractor or subcontractor has successfully contended that the cause of the
violation was a good faith mistake that was promptly corrected when brought to the
contractor’s attention, the file should include the evidence as to the contractor’s knowledge of
his or her obligation, including the program's communication to the contractor of the
obligation in the bid invitations, at the pre-job conference agenda and records, and any other
notice given as part of the contracting process. With the file should be a statement, similar to
that described in (6), and recommended penalty amounts, pursuant to Labor Code Section
1775(a);
8. The previous record of the contractor in meeting their prevailing wage obligations; and
9. Whether extended approval has been granted under CCR §16427.
The file or report shall be served on the Labor Commissioner as soon as practicable after the
violation has been discovered, and not less than 30 days before the final payment, but in no event
not less than 30 days before the expiration of the limitations period set forth in Labor Code §1741.
A copy of the recommended forfeiture and the file or report shall be served on the contractor at
the same time as it is sent to the Labor Commissioner. The documents served on the contractor
may exclude copies of documents secured from the contractor during an audit, investigation, or
meeting if those are clearly referenced in the file or report.
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The Labor Commissioner shall affirm, reject, or modify the forfeiture in whole or in part as to the
wages and penalties due. The Labor Commissioner's determination of the forfeiture is effective on
one of the two following dates: (1) For all programs other than those having extended authority
under CCR §16427, on the date the Labor Commissioner serves by first class mail, on the The
Contracting Agency PM, on the contractor and on the subcontractor, if any, an endorsed copy of
the proposed forfeiture, or a newly drafted forfeiture statement which sets out the amount of
forfeiture approved. Service on the contractor or subcontractor is effective if made on the last
address supplied by the contractor or subcontractor in the record. The Labor Commissioner's
approval, modification or disapproval of the proposed forfeiture shall be served within 30 days of
receipt of the proposed forfeiture.
If the Labor Commissioner notifies the parties of a decision to undertake further review, the Labor
Commissioner's final approval, modification or disapproval of the proposed forfeiture shall be
served within 30 days of the date of notice of further review.
17.6 Forfeitures Requiring Approval by the Labor Commissioner
For all forfeitures over $1,000.00, approval by the Labor Commissioner shall be requested and
obtained in accordance with CCR §16437 (also outlined in section 17.6 below).
Staff is not required to request a determination of the amount of the penalties to be assessed
under California Labor Code section 1775 if:
1. Staff concludes that the failure to pay the correct wages was a good faith mistake;
2. Staff has no knowledge that the contractor and affected subcontractor have a prior record
of failing to meet their prevailing wage obligations; and
3. The underpayment of wages to workers is promptly corrected and proof is provided to
staff.
17.7 Penalties Imposed by the Labor Commissioner
Any contractor found to have paid less than the prevailing wage will be assessed a penalty of not
more than $200 for each calendar day, or portion thereof, for each worker paid less than the
prevailing wage. The Labor Commissioner decides the amount of the penalty, unless it is
determined that the contractor’s failure of compliance was a good faith mistake and the contractor
has no known prior record of non-compliance. This penalty is in addition to restitution amounts
(See California Labor Code Section 1775(a)(1)). If the affected worker was employed by a
subcontractor, the prime contractor is not liable for any penalties unless the prime contractor had
knowledge of the subcontractor’s failure or the prime contractor failed to comply with the
following requirements:
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1. The contract executed between the contractor and the subcontractor shall include a copy of
the provisions of Sections 1771, 1775, 1776, 177.5, 1813, and 1815.
2. The contractor shall periodically review subcontractors’ CPRs to monitor payment of
prevailing wages.
3. The contractor shall diligently take corrective action to halt or rectify subcontractors’
failure to comply with prevailing wage law (e.g. retaining sufficient funds due the
subcontractor for work performed on the public works project).
4. The contractor shall obtain an affidavit signed under penalty of perjury from each
subcontractor stating that the subcontractor has paid the specified general prevailing rate of
per diem wages.
The contractor is given 10 days from receipt of written notice to comply with a request for payroll
records. Failure to comply will result in a penalty of $100 for each calendar day for each worker
until strict compliance is achieved (See California Labor Code Section 1776(h)).
In the case of prevailing wage non-compliance with California Labor Code §1810, the contractor
will be penalized $25 per calendar day (See California Labor Code §1813) for each worker who is
required or permitted to work more than eight hours per day or more than 40 hours in any one
calendar week. Overtime work is permitted without penalty provided that the contractor pays
employees 1.5 times the basic rate of pay. It should be noted that published prevailing wage rates
show premium rates for Saturday, Sunday and holiday work; however, these are not considered
overtime rates. Failure to pay these premium rates is a prevailing wage violation under California
Labor Code §1774 and not an overtime violation.
Under an LCP, monies that are retained are not automatically returned to the contractor. Any
money withheld is considered a forfeiture and can be retained by the Contracting Agency. The
amount retained should be equal to all amounts required to satisfy any civil wage and penalty
assessment and should be retained until receipt of a final order that it is no longer subject to
judicial review. This amount should be withheld before making payments to the contractor for
work completed. If the amount is less than the amount needed to satisfy a civil wage and penalty
assessment, the contractor must withhold sufficient money due to the subcontractor (See
California Labor Code Sections 1727(a) & (b)). Also, contractors may withhold or reclaim
sufficient funds, from the subcontractor(s), to fulfill civil wage and penalty assessments against
the subcontractor(s).
A willful violation occurs when the contractor or subcontractor knew or reasonably should have
known of his or her obligations under the public works law and deliberately fails or refuses to
comply with its provisions.
A contractor or subcontractor as well as all entities in which the contractor or subcontractor has
any interest that is found to be in willful violation of labor compliance is ineligible to bid on a
public works project, be awarded a contract for a public works project or perform work as a
subcontractor on a public works project. The amount of time this penalty is in effect depends on
the number of violations within a three year period (See California Labor Code Section 1777.1).
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The contractor or subcontractor may be guilty of a misdemeanor if, having the ability to pay,
he/she willfully refuses to pay wages due and payable after demand has been made and/or falsely
denies the amount or validity thereof, or that the same is due, with intent to secure any discount
upon such indebtedness or with intent to annoy, harass, oppress, hinder, delay, or defraud the
person to whom such indebtedness is due (See California Labor Code Section 216).
The contractor or subcontractor may be guilty of a misdemeanor if he or she required the
execution of any release of any claim or right on account of wages due, or to become due, or made
as an advance on wages to be earned, unless payment of such wages has been made. Any release
required or executed in violation of provisions of this section shall be null and void (See California
Labor Code Section 206.5).
After 60 days following the service of a civil wage and penalty assessment or a notice of
withholding, the affected contractor, subcontractor, and surety on a bond or bonds issued to
secure the payment of wages shall be liable for liquidated damages in an amount equal to the
wages, or portion thereof that remains unpaid. Any liquidated damages collected shall be
distributed to the employee along with unpaid wages. The administrative law judge may waive
the payment of liquidated damages (Labor Code §1742)
17.8 Deposits of Penalties and Forfeitures Withheld
Where the involvement of the Labor Commissioner had been limited to a determination of the
actual amount of penalty, forfeiture or underpayment of wages, and the matter has been resolved
without litigation by or against the Labor Commissioner, penalties and forfeitures shall be
deposited/retained with the Contracting Agency.
Where collection of fines, penalties or forfeitures results from administrative proceedings or court
action to which the Labor Commissioner and The Contracting Agency are both parties, the fines,
penalties or forfeitures shall be divided between the general funds of the state and The
Contracting Agency, as the Hearing Officer or court may decide.
All penalties recovered in administrative proceedings or court action brought by or against the
Labor Commissioner and to which The Contracting Agency is not a party, shall be deposited in the
general fund of the state.
All wages and benefits which belong to an employee and are withheld or collected from a
contractor or subcontractor, either by withholding or as a result of administrative proceedings or
any court action, and which have not been paid to the employee or irrevocably committed on the
employee's behalf to a benefit fund, shall be deposited with the Labor Commissioner, who shall
handle such wages and benefits in accordance with Labor Code Section 96.7.
If the contractor fails to post an ‘undertaking’ bond or cash deposit with the DIR for the amount of
wages and penalties, and the DIR rules in favor of the agency, the contractor is assessed additional
liquidated damages in an amount equal to the wages.
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18 Project Closeout
18.1 Final Payroll
It is possible and preferable to complete the tasks that are necessary to close out a project prior to
the closeout of the project, once the information is made available. Everything that may be done
prior to closeout ought to be done. For example, each subcontractor must submit a payroll clearly
marked “FINAL” when all subcontractor work has been completed and no further work hours are
to be fulfilled. Although the project may not be closed out until all work has been completed, the
subcontractor may be effectively closed out once all necessary documentation is received.
18.2 Public Works Affidavit
Pursuant to Labor Code §1775(b)(4), the prime contractor is responsible for collecting a public
works affidavit from all of its subcontractors.
Upon completion of the contract, the prime contractor must submit a Public Works Affidavit
certifying that all workers employed by the contractor have been paid wages at rates not less than
those required by the contract provisions. The form must contain an original signature and the
title of the official signing the Affidavit.
Final retention must not be released until the Prime Contractor collects and submits the Public
Works Affidavits for all contractors that have worked on the project.
18.3 Request for Authorization to Release Final Payment
The prime contractor is responsible for the compliance status of all subcontractors on the project.
Final payment will not be made to the prime contractor until all subcontractors are determined to
be in full compliance with all reporting and payment requirements.
When a subcontractor submits to the prime contractor a certified payroll marked “FINAL,” the
prime contractor must submit the final payroll.
After receiving all required final documents, a final closeout and review of the subcontractor's file
will be conducted. If there are no outstanding compliance issues, the Public Works Affidavits will
be signed by a representative of the LCO, and the request for releasing final retention payment is
sent to the The Contracting Agency PM, the Construction Manager, and copied to the prime
contractor.
If a subcontractor has not complied with all reporting and payment requirements, a final Audit
Document identifying all unresolved issues must be prepared for the subcontractor. The Request
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form must be retained in the file until all issues are resolved.
18.4 Internal Checklist Before Closeout
1. Check the project Tracking Log to ensure all documents have been received. If documents have
not been received, request them from the contractor(s).
2. Once all documents have been received, request a Public Works Affidavit from all contractors.
3. Send a Recommendation of Release of Final Retention letter to the construction manager, with a
copy to the prime contractor.
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19 Reporting and Monitoring Activities
19.1 Labor Compliance Review & Enforcement Reports
In accordance with CCR §16434(d), for each public work project subject to enforcement of
prevailing wage requirements, a separate, written summary of labor compliance activities and
relevant facts pertaining to that particular project shall be maintained. That summary shall
demonstrate that reasonable and sufficient efforts have been made to enforce prevailing wage
requirements consistent with the practice of the Labor Commissioner.
The DIR suggested format for tracking and monitoring enforcement activities for each project is
entitled “Single Project Labor Compliance Review and Enforcement Report Form” and is included
as an attachment to this Manual.
Compliance records for a project shall be retained until the later of (1) at least one year after the
acceptance of the public work or five years after the cessation of all labor on a public work that
has not been accepted, or (2) one year after a final decision or judgment in any litigation under
Labor Code §1742. For purposes of this section, a written summary or report includes
information maintained electronically, provided that the summary or report can be printed out in
hard copy form or is in an electronic format that (1) can be transmitted by e-mail or compact disk
and (2) would be acceptable for the filing of documents in a federal or state court of record within
this state.
19.2 Annual Reports
For all projects subject to a LCP, an Annual Report is required to be sent to the Director of the
Department of Industrial Relations no later than August 31, covering activities between July 1 and
June 30.
Information in the Annual Report shall be reported in sufficient detail to afford a basis for
evaluating the scope and level of enforcement activity of the Labor Compliance Program.
The Contracting Agencies failure to submit its Annual Report may result in the revocation of its
LCP by the DIR. An Annual Report is required even if no activity occurred with Prop 84 projects
during the applicable fiscal year.
A sample annual report template is included in section 23 of this manual.
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20 Project Files – LCP Document Control System
20.1 Electronic Project Tracking Log
Each project will have a Document Tracking Log created especially for that project. The Document
Tracking Log is an electronic record of all documents received for all project contractors. It is used
for reporting the contractor’s level of compliance and for determining which required documents
remain outstanding.
In some cases the tracking log is used to substantiate contractor’s monthly progress payment
invoices, which makes the accuracy of the tracking log especially critical. The tracking log also
serves as a Delinquent Document Report, which is sent out monthly to contractors to notify them
of documents that are due. The Report should be sent via PDF, as should all formal letters and
documents transmitted by email.
20.2 Audit File System
In preparing a case for additional review, either by The Contracting Agency, or by the DLSE, the
following critical steps should be routinely applied in every prevailing wage violation case and
particularly for those cases that lead to the filing of a Notice of Withholding of Contract Payments.
Each individual audit needs a separate Audit file, with copies of all pertinent documents, which
may include any or all of the following documents: (Note: original documents need to stay in the
main file and must not leave the office)
Written Narrative describing the violations and includes:
o Applicable Prevailing Wage Determination
For each classification appearing in the audit, the corresponding determination
should be provided
Include any applicable increases
o Scope of Work for Trade Classifications Used
If the complainant has performed work outside the scope for the trade, this
information should be noted with reference to the scope outlined by the DLSR
o Bid Information
Advertisement Date(s)
List of Subcontractors
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Contract award amounts
Description of project
Copy of Worker Complaint
o On-Site Interview Sheets with notes
o Calendar of dates and hours worked
o Copies of check stubs or other form of proof of underpayment
o Document all attempts to authenticate the complaint
o Other supporting documentation
Copy of all Correspondence to Contractor
o Pre-Bid Handout
o Pre-Construction Handout
o LCP Checklist
o Initial notification of complaint
o Invitation to review the preliminary findings
o Requests for additional documentation such as cancelled checks, check stubs, time
cards, cash receipts, ledgers, etc.
o Log of all calls to contractor with notes about the content of discussion
Certified Payroll Records
o Specifically for the time period covered in the complaint
o Accompanied by the notes made by the auditor
Inspector’s Daily Log
o Detailed record of work performed by date and the number of workers on the project
o Records should correspond to the time period covered in the complaint
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Notice to Proceed
o Official project start and completion dates
o Duration of project
Notice of Completion
o With date stamp showing when it was recorded
o Any withholding or action must take place within 180 days from the date of
recording
o Another 180 days is granted beyond this date if funds are still available in
contract
Notice of Withholding of Contract Payments
o Attach copy of the audit spreadsheet
Memo to File
o Should explain the circumstances and reasons for case closure without action
o Provides explanation and reasons for any settlement or agreement reached
with contractor or other parties
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21 Document Confidentiality and Security
All Labor Compliance documents are to be treated as confidential information, which must be kept
and maintained secured. The City of Ukiah should maintain documents in locked file cabinets and
electronic documents should only be accessible by LCP staff.
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22 Terms and Definitions
The terms defined below represents the key terms used in labor compliance.
Affected Contractor or Subcontractor: A contractor or subcontractor (as defined under Labor
Code section 1722.1) to whom the Labor Commissioner has issued a civil wage and penalty
assessment pursuant to Labor Code section 1741, or to whom an Awarding Body has issued a
notice of the withholding of contract payments pursuant to Labor Code section 1771.6, or to
whom the Labor Commissioner or the Division of Apprentice Standards has issued a notice
assessing penalties for noncompliance with payroll record obligations under Labor Code section
1776.
Normally, the assessment and withholding is made against the prime contractor. In the event that
full payment is made to the subcontractor or the amount of underpayment exceeds the amount
still owed to the subcontractor, the Prime Contractor is responsible for the total amount of the
assessment.
Amount Equal to the Underpayment: The total of the following determined by payroll review,
audit, or admission of contractor or subcontractor (See California Code of Regulations §16435):
1. The difference between amounts paid workers and the correct General Prevailing Rate of
Per Diem Wages, as defined in Labor Code Section 1773, and determined to be the prevailing
rate due workers in such craft, classification or trade in which they were employed and the
amounts paid
2. The difference between amounts paid on behalf of workers and the correct amounts of
Employer Payments, as defined in Labor Code Section 1773.1 and determined to be part of the
prevailing rate costs of contractors due for employment of workers in such craft, classification
or trade in which they were employed and the amounts paid
3. Estimated amounts of “illegal taking of wages”
4. Amounts of apprenticeship training contributions paid to neither the program sponsor’s
training trust nor the California Apprenticeship Council
5. Estimated penalties under Labor Code Section 1775, 1776, and 1813; Labor Commissioner
approval is required for §1776 and §1813 penalties.
Area of Determination: The area of determining the prevailing wage is the “locality” or the
“nearest labor market area,” as determined by the Director of Industrial Relations. Consider the
mobility of each craft, classification and type of work when determining the area.
Assessment: A civil wage and penalty assessment issued by the Labor Commissioner or his or her
designee pursuant to Labor Code section 1741, and it also includes a notice issued by either the
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Labor Commissioner or the Division of Apprenticeship Standards pursuant to Labor Code section
1776.
Awarding Body / Contracting Agency: Any state or local government agency, department,
board, commission, bureau, district, office, authority, political subdivision, regional district officer,
employee or agent awarding a contract for public works. See CA Labor Code Section 1722.
Bid: Any proposal submitted to an Awarding Body in competitive bidding for the construction,
alteration, demolition, repair, maintenance, or improvement of any structure, building, road,
property, or other improvement.
Bid Advertisement Date: See “Date of Notice or Call for Bids” below.
CCR: California Code of Regulations (Title 8, Chapter 8, Subchapter 3, Article 6, and subchapter 4).
Certified: The affirmation of a person with the authority to affirm, under the penalty of perjury,
that the records are originals or are full, true and correct copies of the original and depict truly,
fully and correctly the craft or type of work performed, hours and days worked, and the amounts
by category listed, disbursed by way of cash, check, or in whatever form or manner to each person
by job classification and/or skill.
Coverage: This means being subject to the requirements of Part 7, Chapter 1 of the Labor Code as
a “Public Work.” This includes all formal coverage determinations issued by the Director of
Industrial Relations.
CPR: Certified Payroll Records.
DAS: Division of Apprenticeship Standards.
Date of Notice or Call for Bids: The date the first notice inviting bids was published in a
newspaper of general circulation or promulgated in a legally sufficient manner that results in a
contract being awarded with or without competitive bidding. This may also be referred to as the
Bid Advertisement Date.
Days: Unless otherwise specified, this means calendar days.
Delinquent Payroll Records: Those not submitted on the date set in the contract.
Director: The Director of the Department of Industrial Relations or his/her duly authorized
representative.
DLSE: The Division of Labor Standards and Enforcement is the enforcing entity for the state that
approves the assessments. For projects operating under an approved LCP, the Labor Compliance
Program steps in to the shoes of the DLSE up unto the point of assessment of penalties and
approval of forfeitures. An LCP is required to seek approval from the DLSE for any forfeiture and
penalties the LCP has determined are owed for nonpayment of wages.
DLSR: The Division of Labor Statistics and Research.
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Duly Authorized Representative: An employee of the Department of Industrial Relations.
Effective Date: The date upon which the determinations of the Director go into effect. This date is
10 days after the issue date of the determination.
Employer Payments: Includes all of the following:
1. Contributions made by a contractor or subcontractor to a trustee or to a third person
pursuant to a fund, plan, or program for the benefit of employees, their families and
dependents, and retirees.
2. Costs to the contractor or subcontractor that may be reasonably anticipated in providing
benefits to employees, their families and dependents or to retirees pursuant to an enforceable
commitment or agreement to carry out a financially responsible plan or program that was
communicated in writing to the workers affected.
3. Contributions made by a contractor for apprenticeship or other training programs
authorized by Section 3071 and/or 3093 of the Labor Code.
Enforcing Agency: Means the entity which has issued an Assessment or Notice of Withholding of
Contract Payments and with which a Request for Review has been filed; i.e., it refers to the Labor
Commissioner when review is sought from an Assessment, the Awarding Body when review is
sought from a Notice of Withholding of Contract Payments, and the Division of Apprenticeship
Standards when review is sought from a notice issued by that agency that assesses penalties
under Labor Code section 1776.
Expiration Date: The date when the determinations of the Director are subject to change.
Forfeitures: The amounts of unpaid penalty and wage money assessed by the LCP for violations
of the prevailing wage laws (See California Code of Regulations §16436(a)).
General Prevailing Rate of Per Diem Wages: Includes all of the following:
1. The prevailing basic straight-time hourly rate of pay.
2. The prevailing rate for holiday and overtime work.
a. Holiday – Work performed on certain holidays may require the payment of overtime or
double time. A list of designated holidays for each craft or classification of labor can be
found on the DLSR website (www.dir.ca.gov/DLSR/statistics_research.html). Each wage
determination will specify the appropriate wage rate for holiday work.
b. Overtime – Work performed by employees on public works in excess of eight hours per
day and 40 hours per week must be paid for at not less than one-and-one half times the
basic rate of pay (Labor Code Section 1815). Each wage determination will specify the
wage rate required for overtime pay. Failure to pay the required rate will subject the
contractor to a penalty of $25 per worker per violation (Labor Code Section 1813).
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c. Saturday/Sunday Work – Most classifications of workers require the payment of
overtime or double time for work performed on Saturdays and Sundays. Each wage
determination will specify the required wage rate for this work. Pay attention to any
footnotes that may contain exceptions or special requirements.
d. Exceptions: Exceptions to paying overtime wages are explained in detail at 8 CCR
16200(a)(3)(F) and must be narrowly construed. In summary, they include the
following 4 exemptions:
i. If a workweek other than Monday through Friday is a fixed business practice or is
required by the Awarding Body, no overtime payment is required for the first eight
hours on Saturday or Sunday
ii. If the collective bargaining agreement provides for Saturday and Sunday work at
straight-time, no overtime payment is required for the first eight hours on Saturday or
Sunday
iii. If the Awarding Body determines that work cannot be performed during normal
business hours or work is necessary at off hours to avoid danger to life or property, no
overtime is required for the first eight hours in any one calendar day, and 40 hours
during any one calendar week
iv. No overtime payment is required for less than 40 hours in a standard work week or
for less than eight hours in a calendar workday unless specified in the collective
bargaining agreement used as the basis for the prevailing wage determination
3. The prevailing rate of employer payments for any or all programs or benefits for
employees, their families and dependents, and retirees which are of the following types:
a. Medical and hospital care, prescription drugs, dental care, vision care, diagnostic
services, and other health and welfare benefits.
b. Retirement plan (pension) benefits.
c. Vacations and holidays with pay, or cash payments in lieu thereof.
d. Compensation for injuries or illnesses resulting from occupational activity.
e. Life, accidental death and dismemberment, disability or sickness, and accident
insurance.
f. Supplemental unemployment benefits.
g. Thrift, security savings, supplemental trust, and beneficial trust funds otherwise
designated, provided all of the money, except that used for reasonable administrative
expenses, is returned to the employees.
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h. Occupational health and safety research, safety training, monitoring job hazards, and the
like, as specified in the collective bargaining agreement.
i. Other benefits for employees, their families and dependents, or retirees as the Director
may determine.
Hearing Officer: Means any person appointed by the Director pursuant to Labor Code section
1742(b) and California Code of Regulations section 17204 to conduct hearings and other
proceedings under Labor Code section 1742 and these Rules.
Inadequate Payroll Records (See California Code of Regulations, 2004 Amendments,
§16435(d)): Any one of the following:
1. A record lacking the information required by Labor Code Section 1776.
2. A record which contains the required information but not certified, or certified by someone
not an agent of the contractor or subcontractor.
3. A record remaining uncorrected for one payroll period after the LCP has given the
contractor or subcontractor notice of inaccuracies detected by audit or record review; however,
prompt correction will stop any duty to withhold if such inaccuracies do not amount to one
percent of the entire Certified Weekly Payroll in dollar value and do not affect more than half
the persons listed as workers employed on that Certified Weekly Payroll, as defined in Labor
Code Section 1776 and Title 8 CCR Section 16401.
Interested Party: When used in reference to a particular prevailing wage determination made by
the Director, “interested parties” include:
1. Any contractor or subcontractor, or any organization, association, or other representative
of any contractor or subcontractor likely to bid on or to perform a contract for public work
that is subject to the particular prevailing wage determinations.
2. Any worker who may be employed on a public work project subject to a prevailing wage
determination, or any labor organization or other representative of such a person, including
the collective bargaining representative.
3. Any Awarding Body or association concerned with the administration of a public works
contract or proposed contract that is subject to a prevailing wage determination.
Helper: Any sub-journeyman classification; assistant to a journeyman. Helpers may not be used in
lieu of legally required apprentices.
Identify or Give Notice of Identity: This means to state the name, job title, address and phone
number of a person or entity.
Interim Determination: Those determinations of the Director issued between the quarterly
updates.
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Issue Date/Issuance: Determined by the date on which the copies of the Director’s
determination were mailed.
LCP Labor Compliance Program (LCP): California Labor Code Section 1771.5 allows an
Awarding Body to adopt a LCP, which is an organized series of activities designed to fulfill the
monitoring and enforcement of the requirements of the California Labor Code and the California
Code of Regulations. A LCP is required of all awarding bodies seeking to use the following public
funds (a comprehensive list of statutes that require Awarding Bodies to have a LCP shall be
maintained on the Department of Industrial Relations’ website):
1. The Safe Drinking Water, Water Quality and Supply, Flood Control, River and Coastal
Protection Bond Act of 2006 (Proposition 84).
Labor Commissioner: Means the Chief of the Division of Labor Standards Enforcement and
includes his or her designee who has been authorized to carry out the Labor Commissioner's
functions under Chapter 1, Part 7 of Division 2 (commencing with section 1720) of the Labor
Code.
Labor Compliance Officer (LCO): The Labor Compliance Officer is responsible for enforcing
labor compliance requirements.
Maintenance: Includes any and all of the following:
1. Routine, recurring and usual work for the preservation, protection and keeping of any
publicly owned or publicly operated facility for its intended purposes in a safe and continually
usable condition.
2. Carpentry, electrical, plumbing, glazing, and other craft work designed to preserve the
publicly owned or publicly operated facility in a safe, efficient, and continuously usable
condition for which it was intended, including repairs, cleaning and other operations.
3. Landscape maintenance. See 8 CCR § 16000. Exception: Landscape maintenance work by
“sheltered workshops” is excluded. See definition of “Sheltered Workshop” below.
Maintenance does not include the following:
- Janitorial or custodial services of a routine, recurring, or usual nature.
- Protection of the sort provided by guards, watchmen or other security forces.
Mistake, Inadvertence or Neglect: Mistake, inadvertence, or neglect in failing to pay the correct
general rate of per diem wages means the lack of knowledge that any reasonable person would
also be expected to have under similar circumstances.
Nearest Labor Market Area: The nearest geographical area from which workers to be used in
the performance and execution of the public work can be drawn.
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Non-Performance Report: The contractor must complete a non-performance report form when
no work is performed on the project for a period of time. On the form that contractor states there
was no payroll for a specific time period. All days for a project must be accounted for, including
Saturdays, Sundays and holidays.
Party: Means an Affected Contractor or Subcontractor who has requested review of either an
Assessment or a Notice of Withholding of Contract Payments, the Enforcing Agency that issued the
Assessment or the Notice of Withholding of Contract Payments from which review is sought, and
any other Person who has intervened under subparts (a), (b), or (c) of Rule 08 [8 CCR § 17208].
Payroll Records: All time cards, cancelled checks, cash receipts, trust fund forms, books,
documents, schedules, forms, reports, receipts or other evidences that reflect job assignments,
work schedules by days and hours, and the disbursement by way of cash, check, or in whatever
form or manner, of funds to a person(s) by job classification and/or skill assigned to a public
works project.
Person: Any individual or legal entity, including a partnership, corporation, association, or any
local, state, regional, national or international organization, public or private, or any Awarding
Body, or any agent or officer thereof, authorized to act for or on behalf of any of the foregoing.
Political Subdivision: Includes any county, city, district, public housing authority, or public
agency, and assessment or improvement districts.
Per Diem Wages: See Wages.
Predetermined Changes: Definite changes to the basic hourly wage rate, overtime, holiday pay
rates, and employer payments that are known and enumerated in the collective bargaining
agreement at the time of the bid advertisement date and that are referenced in the general
prevailing rate of per diem wages. Contractors must pay the amount that was predetermined if
these changes are modified prior to their effective date. Predetermined changes that are
rescinded prior to their effective date will not be enforced. Additionally, rate increases that occur
during the life of the project but were not predetermined at the time of the bid advertisement date
are not to be enforced.
Prevailing Rate: Includes the following:
1. The basic hourly rate being paid to a majority of workers engaged in the particular craft,
classification, or type of work within the locality and in the nearest labor market area. If there
is no single rate being paid to a majority, then the single rate being paid to the greater number
of workers is prevailing. The rate being paid to the greatest number of workers – whether or
not the number of workers is a majority – is considered the modal rate. If there is no modal
rate, then an alternate rate will be established by considering collective bargaining
agreements, Federal rates, or other data, such as wage survey data.
2. Other employer payments included as part of the total hourly wage rate, from which the
prevailing basic hourly wage rate was derived. In the event that the total hourly wage rate
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does not include any employer payments, then the Director may establish a prevailing
employer payment rate.
3. The rate for holiday or overtime work will be those rates specified in the collective
bargaining agreement when the basic hourly rate is based on a collective bargaining
agreement rate. In the event the basic hourly rate is not based on a collective bargaining
agreement, holidays and overtime (if any) included with the prevailing basic hourly rate of pay
will be prevailing.
Public Entity: For the purpose of processing requests for inspection of payroll records or
furnishing certified copies thereof, “public entity” includes: the body awarding the contracts, the
Division of Apprenticeship Standards (DAS), or the Division of Labor Standards Enforcement
(DLSE).
Public Funds: Includes state, local, and/or federal monies. Public funds do not include money
loaned to a private entity where work is to be performed under private contract, and where no
portion of the work is supervised, owned, utilized, or managed by an Awarding Body.
Public Works: “Construction, alteration, demolition, installation, or repair work done under
contract and paid for in whole or in part out of public funds, except work done directly be any
public utility company pursuant to order of the Public Utilities Commission or other public
authority.” See Sections 1720, 1720.2, 1720.3, and 1771 of the Labor Code for more information.
Representative: Means a person authorized by a Party to represent that Party in a proceeding
before a Hearing Officer or the Director, and includes the Labor Commissioner when the Labor
Commissioner has intervened to represent the Awarding Body in a review proceeding pursuant to
Labor Code section 1771.6(b).
Request for Review of Forfeitures: An assessment made by an Awarding Body/Labor
Compliance issues an assessment of penalties against a contractor for violations on the public
works including but not limited to the underpayment of wages, misclassification of workers,
underreporting of hours.
An awarding body/LCP can also assess penalties against a contractor for violations of Labor Code
Section §1776 for incomplete, inaccurate or delinquent Certified Payroll Records. As of October
2009, these penalties are subject to the review of DLSE and can no longer be assessed by the LCP/
Awarding Body without approval.
An awarding body wishing to assess penalties against a contractor for violations of California
Labor Code §1813 and §1774 needs to request a review of forfeitures by the Deputy Labor
Commissioner.
Section 1013 of the California Code of Civil Procedure (a): In case of service by mail, the notice
or other paper shall be deposited in a post office, mailbox, sub-post office, substation, or mail
chute, or other like facility regularly maintained by the United States Postal Service, in a sealed
envelope, with postage paid, addressed to the person on whom it is to be served, at the office
address as last given by that person on any document filed in the cause and served on the party
CITY OF UKIAH
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making service by mail; otherwise at that party's place of residence. The service is complete at the
time of the deposit, but any period of notice and any right or duty to do any act or make any
response within any period or on a date certain after the service of the document, which time
period or date is prescribed by statute or rule of court, shall be extended five calendar days, upon
service by mail, if the place of address and the place of mailing is within the State of California, 10
calendar days if either the place of mailing or the place of address is outside the State of California
but within the United States, and 20 calendar days if either the place of mailing or the place of
address is outside the United States, but the extension shall not apply to extend the time for filing
notice of intention to move for new trial, notice of intention to move to vacate judgment pursuant
to Section 663a, or notice of appeal. This extension applies in the absence of a specific exception
provided for by this section or other statute or rule of court. The copy of the notice or other paper
served by mail pursuant to this chapter shall bear a notation of the date and place of mailing or be
accompanied by an unsigned copy of the affidavit or certificate of mailing.
In the case of service by Express Mail, the notice or other paper must be deposited in a post office,
mailbox, sub-post office, substation, or mail chute, or other like facility regularly maintained by the
United States Postal Service for receipt of Express Mail, in a sealed envelope, with Express Mail
postage paid, addressed to the person on whom it is to be served, at the office address as last given
by that person on any document filed in the cause and served on the party making service by
Express Mail otherwise at that party's place of residence. In case of service by another method of
delivery providing for overnight delivery, the notice or other paper must be deposited in a box or
other facility regularly maintained by the express service carrier, or delivered to an authorized
courier or driver authorized by the express service carrier to receive documents, in an envelope or
package designated by the express service carrier with delivery fees paid or provided for,
addressed to the person on whom it is to be served, at the office address as last given by that
person on any document filed in the cause and served on the party making service; otherwise at
that party's place of residence. The service is complete at the time of the deposit, but any period of
notice and any right or duty to do any act or make any response within any period or on a date
certain after the service of the document served by Express Mail or other method of delivery
providing for overnight delivery shall be extended by two court days, but the extension shall not
apply to extend the time for filing notice of intention to move for new trial, notice of intention to
move to vacate judgment pursuant to Section 663a, or notice of appeal. This extension applies in
the absence of a specific exception provided for by this section or other statute or rule of court.
The copy of the notice or other paper served by Express Mail or another means of delivery
providing for overnight delivery pursuant to this chapter shall bear a notation of the date and
place of deposit or be accompanied by an unsigned copy of the affidavit or certificate of deposit.
Service by facsimile transmission shall be permitted only where the parties agree and a written
confirmation of that agreement is made. The Judicial Council may adopt rules implementing the
service of documents by facsimile transmission and may provide a form for the confirmation of
the agreement required by this subdivision. In case of service by facsimile transmission, the notice
or other paper must be transmitted to a facsimile machine maintained by the person on whom it is
served at the facsimile machine telephone number as last given by that person on any document
which he or she has filed in the cause and served on the party making the service. The service is
complete at the time of transmission, but any period of notice and any right or duty to do any act
or make any response within any period or on a date certain after the service of the document,
CITY OF UKIAH
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which time period or date is prescribed by statute or rule of court, shall be extended, after service
by facsimile transmission, by two court days, but the extension shall not apply to extend the time
for filing notice of intention to move for new trial, notice of intention to move to vacate judgment
pursuant to Section 663a, or notice of appeal. This extension applies in the absence of a specific
exception provided for by this section or other statute or rule of court. The copy of the notice or
other paper served by facsimile transmission pursuant to this chapter shall bear a notation of the
date and place of transmission and the facsimile telephone number to which transmitted or be
accompanied by an unsigned copy of the affidavit or certificate of transmission which shall contain
the facsimile telephone number to which the notice or other paper was transmitted.
1013a. Proof of service by mail may be made by one of the following methods:
1. An affidavit setting forth the exact title of the document served and filed in the cause,
showing the name and residence or business address of the person making the service,
showing that he or she is a resident of or employed in the county where the mailing occurs,
that he or she is over the age of 18 years and not a party to the cause, and showing the date
and place of deposit in the mail, the name and address of the person served as shown on the
envelope, and also showing that the envelope was sealed and deposited in the mail with the
postage thereon fully prepaid.
2. A certificate setting forth the exact title of the document served and filed in the cause,
showing the name and business address of the person making the service, showing that he or
she is an active member of the State Bar of California and is not a party to the cause, and
showing the date and place of deposit in the mail, the name and address of the person served
as shown on the envelope, and also showing that the envelope was sealed and deposited in the
mail with the postage thereon fully prepaid.
3. An affidavit setting forth the exact title of the document served and filed in the cause,
showing (A) the name and residence or business address of the person making the service, (B)
that he or she is a resident of, or employed in, the county where the mailing occurs, (C) that he
or she is over the age of 18 years and not a party to the cause, (D) that he or she is readily
familiar with the business' practice for collection and processing of correspondence for mailing
with the United States Postal Service, (E) that the correspondence would be deposited with the
United States Postal Service that same day in the ordinary course of business, (F) the name and
address of the person served as shown on the envelope, and the date and place of business
where the correspondence was placed for deposit in the United States Postal Service, and (G)
that the envelope was sealed and placed for collection and mailing on that date following
ordinary business practices. Service made pursuant to this paragraph, upon motion of a party
served, shall be presumed invalid if the postal cancellation date or postage meter date on the
envelope is more than one day after the date of deposit for mailing contained in the affidavit.
4. In case of service by the clerk of a court of record, a certificate by that clerk setting forth the
exact title of the document served and filed in the cause, showing the name of the clerk and the
name of the court of which he or she is the clerk, and that he or she is not a party to the cause,
and showing the date and place of deposit in the mail, the name and address of the person
served as shown on the envelope, and also showing that the envelope was sealed and
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deposited in the mail with the postage thereon fully prepaid. This form of proof is sufficient for
service of process in which the clerk or deputy clerk signing the certificate places the
document for collection and mailing on the date shown thereon, so as to cause it to be mailed
in an envelope so sealed and so addressed on that date following standard court practices.
Service made pursuant to this paragraph, upon motion of a party served and a finding of good
cause by the court, shall be deemed to have occurred on the date of postage cancellation or
postage meter imprint as shown on the envelope if that date is more than one day after the
date of deposit for mailing contained in the certificate.
Serve Upon the Labor Commissioner: Delivery of all documents, including legal process, to the
local District Office of the Labor Commissioner. See website for DLSE District office locations:
http://www.dir.ca.gov/dlse/DistrictOffices.htm
Sheltered Workshop: A nonprofit organization licensed by the DLSE employing mentally and/or
physically handicapped workers.
Surety: Has the meaning set forth in Civil Code section 2787 and refers to the entity that issues
the public works bond provided for in Civil Code sections 3247 and 3248 or any other surety bond
that guarantees the payment of wages for labor.
Travel & Subsistence Payments: Because the law requires that workers receive the general
prevailing rate of per diem as part of the contractor’s prevailing wage obligation, there may be a
requirement to pay travel/subsistence. Many classifications require the payment of mileage or
subsistence for traveling certain distances. These requirements are contained in the collective
bargaining agreement on file with DLSR for each craft/classification of worker. Requirements may
be downloaded from the DLSR website at www.dir.ca.gov/DLSR/statistics_research.html
Wages: According to California Labor Code Sections 1773.1 (a) through 1773.1 (e), wages include
employer payments of the following:
1. Health and welfare
2. Pension
3. Vacation
4. Travel
5. Subsistence
6. Apprenticeship or other authorized training programs as long as the cost of training is
reasonably related to the amount of the contributions
7. Worker protection and assistance programs or committees established under the federal
Labor Management Cooperation Act of 1978, to the extent that the activities of the programs
or committees are directed to the monitoring and enforcement of laws related to public works
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8. Industry advancement and collective bargaining agreements administrative fees
9. Other purposes similar to those above
Wage Survey: An investigation conducted pursuant to Labor Code Sections 1773 and/or 1773.4
to determine the general prevailing rate of per diem wages for the crafts/classifications in the
county for which the survey questionnaire was designed.
Willful Violation: Labor Code Section 1777.1(d) defines the standard applied for a willful
violation. Specifically section 1777.1(d) states: “A willful violation occurs when the contractor or
subcontractor knew or reasonably should have known of his or her obligations under the public
works law and deliberately fails or refuses to comply with its provisions.”
Withhold: To cease payments made by the Awarding Body, or others who pay on its behalf, or
agents, to the general contractor. Per CCR §16435, The Awarding Body may withhold contract
payments when payroll records are delinquent or inadequate or when, after investigation, it is
established that underpayment has occurred; “Delinquent payroll records” means those not
submitted on the date set in the contract; “Inadequate payroll records” are any one of the
following:
1. A record lacking the information required by Labor Code Section 1776
2. A record which contains the required information but not certified, or certified by someone
not an agent of the contractor or subcontractor
3. A record remaining uncorrected for one payroll period, after the Labor Compliance
Program has given the contractor or subcontractor notice of inaccuracies detected by audit or
record review. Provided, however, that prompt correction will stop any duty to withhold if
such inaccuracies do not amount to one percent of the entire Certified Weekly Payroll in dollar
value and do not affect more than half the persons listed as workers employed on that Certified
Weekly Payroll, as defined in Labor Code Section 1776 and Title 8 CCR Section 16401.
Withholding of Contract Payments: A notice of withholding is served on a contractor/
subcontractor once the Deputy Labor Commissioner has approved a request for review of
forfeitures.
An Assessment, a Notice of Withholding of Contract Payments, or a notice assessing penalties
under Labor Code section 1776 shall be served on the contractor and subcontractor, if applicable,
by first class and certified mail pursuant to the requirements of Code of Civil Procedure section
1013. A copy of the notice shall also be served by certified mail on any bonding company issuing a
bond that secures the payment of the wages covered by the Assessment or Notice and to any
Surety on a bond, if the identities of such companies are known or reasonably ascertainable. The
identity of any Surety issuing a bond for the benefit of an Awarding Body as designated obligee,
shall be deemed "known or reasonably ascertainable," and the Surety shall be deemed to have
received the notice required under this subpart if sent to the address appearing on the face of the
bond.
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Worker: For compliance purposes, those employed by contactors or subcontractors in the
execution of any contract for public works (See California Labor Code Section 1772).
Working Day: Means any day that is not a Saturday, Sunday, or State holiday, as determined with
reference to Code of Civil Procedure sections 12(a) and 12(b) and Government Code sections 6700
and 6701.
26
ATTACHMENT A - CHECKLIST OF LABOR LAW REQUIREMENTS
FOR REVIEW AT PRE-CON CONFERENCE
(In accordance with CCR § 16421)
The federal and state labor law requirements applicable to the contract are composed of, but not limited to, the following:
1. Payment of Prevailing Wage Rates
The award of a public works contract requires that all workers employed on the project be paid not less than the specified general prevailing wage
rates by the contractor and its subcontractors, unless subject to exemption per Labor Code § 1771.5. Should a contract exceed exemption amounts,
the contractor and its subcontractors are required to pay not less than the specified general prevailing wage rates.
The contractor is responsible for obtaining and complying with all applicable general prevailing wage rates for trades workers and any rate changes,
which may occur during the term of the contract. Prevailing wage rates and rate changes are to be posted at the job site for workers to view.
2. Apprentices
It is the duty of the contractor and subcontractor to employ registered apprentices on public works
projects per Labor Code § 1777.5.
3. Penalties
Penalties, included forfeitures, and debarment, shall be imposed for contractor/subcontractor failure to pay prevailing wages (for nonexempt
projects), failure to maintain and submit accurate certified payroll records upon request, failure to employ apprentices, and for failure to pay
employees for all hours worked at the correct prevailing wage rate, in accordance with Labor Code §§ 1775, 1776, 1777.7, and 1813.
4. Certified Payroll Records
Per Labor Code § 1776, contractors and subcontractors are required to keep accurate payroll records which reflect the name, address, social security
number, and work classification of each employee; the straight time and overtime hours worked each day and each week; the fringe benefits; and the
actual per diem wages paid to each journeyperson, apprentice, worker, or other employee hired in connection with a public works project. Employee
payroll records shall be certified and shall be made available for inspection at all reasonable hours at the principal office of the
contractor/subcontractor, or shall be furnished to any employee, or to his or her authorized representative on request.
Contractors and subcontractors shall maintain their certified payrolls on a weekly basis and shall submit said payrolls to the Labor Compliance office
on a weekly basis. In the event that there has been no work performed during a given week, the Certified Payroll Record shall be annotated “No
Work” for that week and the final payroll for each contractor and subcontractor shall be identified in bold markings as “Final Project Payroll”.
5. Nondiscrimination in Employment
Prohibitions against employment discrimination are contained in Labor Code Sections 1735 and 1777.6; the Government Code; the Public Contracts
Code; and Title VII of the Civil Rights Act of 1964, as amended. All contractors and subcontractors are required to implement equal employment
opportunity practices for women and ethnic groups as delineated below:
a. Equal Employment Poster
The equal employment poster shall be posted at the job site in a conspicuous place visible to
employees and employment applicants for the duration of the project.
b. The contractor and each subcontractor shall maintain accurate records of employment information
as required by the Monthly Employment Utilization Report. This report shall specify the ethnicity
and gender for each employee in a craft, trade, or classification.
c. Further, efforts should be made to employ apprentices on public works contracts per Labor Code §1777.5 efforts to employ apprentices should
also be documented.
6. Kickback Prohibited
Per Labor Code § 1778, contractors and subcontractors are prohibited from accepting, taking wages illegally, or extracting “kickback” from employee
wages;
7. Acceptance of Fees Prohibited
Contractors and subcontractors are prohibited from exacting any type of fee for registering individuals for public work (Labor Code § 1779); or for
filing work orders on public works contracts (Labor Code § 1780).
8. Listing of Subcontractors
Contractors are required to list all subcontractors hired to perform work on a public works project when that work is equivalent to more than one-half
of one percent of the total effort (Government Code § 4100, et seq.);
27
9. Proper Licensing
Contractors and subcontractors are required to be properly licensed. Penalties will be imposed for employing workers while unlicensed (Labor Code
§ 1021 and Business and Professions Code § 7000, et seq. under California Contractors License Law);
10. Unfair Competition Prohibited
Contractors and subcontractors are prohibited from engaging in unfair competition (Business and Professions Code §§ 17200-17208);
11. Workers’ Compensation Insurance
All contractors and subcontractors are required to be insured against liability for workers’ compensation, or to undertake self -insurance in
accordance with the provisions of Labor Code § 3700 (Labor Code § 1861);
12. OSHA
Contractors and subcontractors are required to comply with the Occupational, Safety and Health laws and regulations applicable to the particular
public works project; and
13. Undocumented Workers
The Federal prohibition against hiring undocumented workers, and the requirement to secure proof of eligibility/citizenship from all workers.
14. Itemized Wage Statements
Every employer shall, semimonthly or at the time of each payment of wages, furnish each of his or her employees, either as a detachable part of the
check, draft or voucher paying the employee’s wages, or separately when wages are paid by personal check or cash, an accurate itemized
statement as per §226 of the state labor code.
I acknowledge that I have been informed and am aware of the foregoing requirements and that I am authorized to make this certification on behalf of
_____________________ (contractor)
For the Contractor: For the Labor Compliance Administrator
--------------------------------------------- --------------------------------------
Signature Signature
--------------------------------------------- --------------------------------------
Date Date
Labor Compliance Program Regulations
Audit Record Worksheets [8 Cal. Code Reg. §16432]
• Public Works Investigation Worksheet
• Public Works Audit Worksheet
• Prevailing Wage Determination Summary
CONFIDENTIAL
CEM 2504 (REV 6/1999) (Front) CT #7541-3512-3
EMPLOYEE INTERVIEW: LABOR COMPLIANCE / EEO
STATE OF CALIFORNIA • DEPARTMENT OF TRANSPORTATION
INSTRUCTIONS - (SEE REVERSE SIDE)
1. TO BE FILLED IN BY INTERVIEWER (Data may be obtained from payroll records or during source document review)
2. QUESTIONS TO BE ASKED OF EMPLOYEE
A.
B.
C.
D.
E.
F.
G.
DO YOU KEEP A RECORD OF THE HOURS YOU WORK?
DO YOU WORK OVERTIME?ARE YOU PAID TIME AND
ONE-HALF FOR OVERTIME?
HAS YOUR EMPLOYER DIRECTED YOUR ATTENTION TO
THE REQUIRED WAGE RATE POSTERS ON THE PROJECT?
FREQUENTLYSELDOMNONE
HAVE YOU SEEN
THOSE POSTERS?
ARE YOU AWARE OF THE
CONTRACTOR'S EEO POLICIES?
DOES THE CONTRACTOR HOLD
REGULAR EEO MEETINGS?
ARE YOU INTERESTED IN / OR HAS YOUR EMPLOYER INFORMED YOU OF UPGRADING
AND TRAINING POSSIBILITIES?
3. ADDITIONAL QUESTIONS FOR OWNER OPERATORS
A.
B.
HOURLY RATE
(Fully operated and maintained)
ON WHAT DO YOU BASE YOUR
EQUIPMENT RENTAL RATE?HOURLYWEEKLYMONTHLY
DO YOU OWN THE EQUIPMENT?MAY I SEE YOUR CERTIFICATE OF OWNERSHIP?
(Interviewer Note Response)
4. EMPLOYEE COMMENTS 5. INTERVIEWER'S COMMENTS
FM 91 1282 91 61116
CONTRACT NO
FED. NO.
EMPLOYEE NAME LABOR CLASSIFICATION
MINIMUM BASE WAGE PER
CONTRACT:
BASE RATE FRINGE BENEFITS
FRINGE BENEFITS BASE RATE
EMPLOYER PRIME CONTRACTOR ON THE PROJECT (IF SAME, SO STATE)
WORK BEING PERFORMED AT TIME OF INTERVIEW
HOW LONG HAVE YOU WORKED FOR YOUR PRESENT EMPLOYER? HOW LONG ON THIS PROJECT?
DESCRIBE THE TYPE OF WORK YOU HAVE BEEN DOING THIS PAST WEEK
WHAT IS YOUR WAGE [Include Base and Fringe Benefits (Compare to Payroll)]
YESNO
YESNO
NOYES
IF NO, EXPLAIN
IF NO, EXPLAIN
YESNONOYES
HOW OFTEN?
NOYES
WHO CONDUCTS THE MEETINGS? WHO IS THE EEO OFFICER FOR YOUR EMPLOYER? WHO IS THE EEO OFFICER FOR THE PROJECT?
NOYES
IF YES, PLEASE EXPLAIN
EQUIPMENT DESCRIPTION TRUCK LICENCE NO. TRUCK CA #
$
BASE EQUIPMENT RATE
$
NOYES
LEGAL OWNER REGISTERED OWNER
DO YOU HAVE ANY COMMENTS OR COMPLAINTS ABOUT WAGES OR EEO POLICIES?
BE SPECIFIC:
SIGNATURE OF INTERVIEWER
DATE
SIGNATURE OF RESIDENT ENGINEER
DATE
For individuals with sensory disabilities, this document is available in alternate
formats. For information call (916) 654-6410 or TDD (916) 654-3880 or write
Records and Forms Management, 1120 N Street, MS-89, Sacramento, CA 95814.
ADA Notice
MINIMUM BASE WAGE PER
CONTRACT:
NAME OF INTERVIEWER (PRINT)NAME OF RESIDENT ENGINEER (PRINT)
This document contains personal information and pursuant to
Civil Code 1798.21 it shall be kept confidential in order to protect
against unauthorized disclosure.
CEM 2504 (REV 6/1999) (Back) CT #7541-3512-3
EMPLOYEE INTERVIEW: LABOR COMPLIANCE / EEO
STATE OF CALIFORNIA • DEPARTMENT OF TRANSPORTATION
DIRECTIONS TO INTERVIEWER
1.
2.
3.
4.
5.
Fill in Section 1 from payroll records, if available, after interview.
Fill in Section 2 completely. (does not apply to owner operators)
Fill in Section 3 completely.
Employee comments optional in Section 4.
Interviewer comments on findings and recommends further actions
to be taken. Attach additional sheets if necessary.
1.
2.
Enter name of the Committee
3.
Date
Apprenticeship Committee. We will employ and train under their Standards.Enter name of the Committee
We will employ and train apprentices in accordance with the California Apprenticeship Council regulations,
including § 230.1 (c) which requires that apprentices employed on public projects can only be assigned to
perform work of the craft or trade to which the apprentice is registered and that the apprentices must at all
times work with or under the direct supervision of journeyman/men.
We will comply with the standards of
Apprenticeship Committee for the duration of this job only.
We are already approved to train apprentices by the
THIS FORM IS BEING SENT TO: (NAME & ADDRESS OF APPRENTICESHIP PROGRAM(S))
Check One Of The Boxes Below
PUBLIC WORKS CONTRACT AWARD INFORMATION
NAME & ADDRESS OF PUBLIC AGENCY AWARDING CONTRACT
Contract award information mustbesent toyour Apprenticeship Committeeifyouare approvedtotrain.Ifyouarenot approvedto train,you
mustsendthe information (whichmaybe this form)toALLapplicable Apprenticeship Committeesin your craftor tradeintheareaofthesite
ofthepublic work.Goto:http://www.dir.ca.gov/das/PublicWorksForms.htmfor informationabout programsin yourareaand trade.Youmay
also consult your localDivisionof Apprenticeship Standards(DAS)office whose telephone numbermaybe foundinyour local directory under
California, State of, Industrial Relations, Division of Apprenticeship Standards.
Do not send this form to the Division of Apprenticeship Standards.
NAME OF YOUR COMPANY
MAILING ADDRESS- NUMBER & STREET, CITY, ZIP CODE
CONTRACTOR'S STATE LICENSE NO
APPROXIMATE DATES TO BE EMPLOYED
ESTIMATED NUMBER OF APPRENTICE HOURS
AREA CODE & TELEPHONE NO.
DATE OF EXPECTED OR ACTUAL START OF PROJECT
ESTIMATED NUMBER OF JOURNEYMEN HOURS
This is not a request for dispatch of apprentices.
Contractors must make a separate request for actual dispatch, in accordance with Section 230.1(a) California Code of Regulations
DATE YOUR CONTRACT EXECUTED
OCCUPATION OF APPRENTICE
NAME & ADDRESS OF PUBLIC WORKS PROJECT
DAS 140 (REV. 1/04)
State of California - Department of Industrial Relations DIVISION
OF APPRENTICESHIP STANDARDS
Signature
Typed Name
Title
REQUEST FOR DISPATCH OF AN APPRENTICE – DAS 142 FORM
DO NOT SEND THIS FORM TO DAS
You may use this form to request dispatch of an apprentice from the Apprenticeship Committee in the craft or
trade in the area of the public work. Go to: http://www.dir.ca.gov/DAS/PublicWorksForms.htm for information
about programs in your area and trade. You may also consult your local Division Apprenticeship Standards
(DAS) office whose telephone number may be found in your local directory under California, State of, Industrial
Relations, Division of Apprenticeship Standards. Except for projects with less than 40 hours of journeyman
work, you must request and employ apprentices in no less than 8 hour increments.
Date:
Contractor Requesting Dispatch:
To Applicable Apprenticeship Committee:
Name:____________________________________________
Address:__________________________________________
__________________________________________
Tel. No. _______________ Fax No. ___________________
Name: ______________________________________
Address: ____________________________________
_________________________________
License No. __________________________________
Tel. No. _______________ Fax No. _______________
Project Information:
Contract No. _____________________________________________________________________________________
Name of the Project:_______________________________________________________________________________
Address:_________________________________________________________________________________________
Dispatch Request Information:
Number of Apprentice(s) Needed: _________________ Craft or Trade: ___________________________________
Date Apprentice(s) to Report: _______________ (72 hrs. notice required) Time to Report: _________________
Name of Person to Report to: ______________________________________
Address to Report to: _____________________________________________
_____________________________________________
You may use this form to make your written request for the dispatch of an apprentice. Requests for dispatch must be in
writing and submitted at least 72 hours in advance (excluding weekends and holidays) via first class mail, fax or email. Proof
of submission may be required. Please take note of California Code of Regulations, Title 8, § 230.1 (a) for all applicable
requirements regarding apprenticeship requests and/or visit
http://www.dir.ca.gov/DAS/DASApprenticesOnPublicWorksSummaryOfRequirements.htm
DAS 142 (Revised 12/11)
ABCDOfficial Use
D. O.GenderEthnicDependents EducationSTATUS
APPRENTICE LAST NAME, FIRST NAME MIDDLE
APPRENTICE ADDRESS (NUMBER AND STREET / CITY, STATE & ZIP) BIRTHDATE (mm/dd/yyyy)
Yes:No:
OCCUPATION
TERM OF APPRENTICESHIPSTRAIGHT TIME
Hours WithinYearsHours per day:8Hours per week:
This agreement is between the above named apprentice employed by the below named employer, and
DAYMONTHYEAR SIGNATURE OF APPRENTICE
NAME OF EMPLOYER
SIGNATURE -- SECRETARY / CHAIR / COORDINATORDATE
ADDRESS
SIGNATURE -- APPRENTICESHIP CONSULTANTDATE
for the Administrator of Apprenticeship
DAS 1 (REV. 3/12)APPRENTICE AGREEMENT
E
FILE NUMBER Yrs Employ
F - VETERAN
State of California -- Department of Industrial Relations --DIVISION OF APPRENTICESHIP STANDARDS
APPRENTICE AGREEMENT
SOCIAL SECURITY NUMBER
PROGRAM SPONSOR
AGREEMENT:Theundersignedpartiesmutuallyagreethattheywillusetheirbestendeavorstosecureemploymentandtrainingfor
theapprentice.Theapprenticeagreestoperformsatisfactorilyallworkandlearningassignments.Theprovisionsofthe
ApprenticeshipStandardsfortheaboveoccupationadoptedbytheprogramsponsorandapprovedbytheChiefoftheDivisionof
ApprenticeshipStandards,areherebymadea partofthisagreement.Anofficialcopyofthestandardsisonfileintheheadquartersof
theDivisionofApprenticeshipStandards.This apprenticeagreementwillcontinueineffect untilthetrainingiscompletedorotherwise
terminated in accordance with the standards.
TheapprenticecommencesparticipationunderthesestandardsonthedateofexecutionofthisagreementbytheApprentice.The
signatoryapprenticeiscreditedwithhaving______monthstoward completionofthetermofapprenticeship.Theapprenticeis
expectedtocompletetrainingonorabout____________________,20____,uponsatisfactorycompletionofthetotalremaining
hours of on-the-job training and hours and/or units of related and supplemental instruction.
COUNTY OF RESIDENCE
O*Net code
40
SIGNATURE OF EMPLOYER OR ITS REPRESENTATIVE TITLE
ACCEPTED BY DAS
for unilateral programs only ]
This agreement is approved by
I,theundersignedapprenticeunderstandand agreethatthisagreementisapprovedconditionedonobtaininganapprenticelicense
fromtheStateBoardofBarberingandCosmetology,andifIfail toobtainthislicensewithin90daysfromthedateofsigningthis
agreement this agreement will be cancelled.
I,theundersignedapprentice,herebyrequestthat theAdministratorofApprenticeshipterminateanyotherapprenticeshipagreements
in which I am currently registered.
Executed this _______ day of _________________ , 20____ by _______________________________________________
AGREED TO BY THE EMPLOYER
SIGNATURE OF PARENT OR GUARDIAN (IF APPRENTICE IS 16 OR 17)
AGREED TO AND APPROVED BY, FOR THE COMMITTEE
APPRENTICE:I,theundersignedapprentice,understandandagreethatthereisavalidandreasonablenecessitythatthose
academicrecordsaccumulatedthroughoutrelatedandsupplemental instructionduringmyperiodofapprenticeshipbemadeavailable
totheapprenticeshipcommittee.Further,Iagreetoreleasetothe apprenticeshipcommitteeanyotheracademicrecordswhichIfeel
may enhance my status as an apprentice.
A.Gender C.Number of Dependents (Do not count yourself)
Male Female 0 None4 Four
(Cal. Code of Regulations, Title 8, Ch. 2, Sec. 215 1 One5 Five
B.Ethnic or Race Derivation (Check only one)2 Two6 Six of More
1 3 Three
(Voluntary)
2 D.Highest Year of Education Completed
1 8th Grade or less6 1 Year of College
2 9th Grade7 2 Years of College
3 10th Grade8 3 Years of College
4 11th Grade9
A AsianAsian Indian 5
B AsianBangladeshi
C AsianChinese (Cal. Labor Code, Ch. 4, div. 3, Sec. 3076.3)
D AsianCambodian E.
6 AsianFilipino 0 None
E AsianHmong 1 Less Than 1 Year
I AsianIndonesian 2 1 But Less Than 2 Years
J AsianJapanese 3 2 But Less Than 3 Years
K AsianKorean 4 3 But Less Than 4 Years
L AsianLaotian 5 4 But Less Than 5 Years
M AsianMalaysian 6 5 Years or More
P AsianPakistani
R AsianSri Lankan (Voluntary)
T AsianTaiwanese F.
U AsianThai Yes No
V AsianVietnameseIf yes, Please Enter:
F Native HawaiianFijianMonth and Year Entered ______________________
G Native HawaiianGuamanianMonth and Year Separated ____________________
H Native HawaiianHawaiianTotal Months served on Active Duty _____________
S Native HawaiianSamoan
W Native HawaiianTongan
4
7
(Cal. Labor Code, Ch. 4, div. 3, Sec. 151)
TOTHEAPPRENTICE:CaliforniaCivilCodeSec.1798.17requiresStateagencieswhichcollectpersonalinformationtoindicatethe
authorityunderwhichthedataarerequested.Ifpersonalinformationnotspecificallyauthorizedbylawisrequested,individualsmustbe
informedthatsupplyingtheinformationisvoluntary.Italsoprovidesthatstateagenciesmaychangeormodifyrecordsattherequestofthe
individual.
QuestionsCandEbelowarevoluntary.Allothersareauthorizedbylaw,asindicatedbythereferenceineachsection.Iftheauthorized
questions are not answered, the apprentice agreement cannot be accepted.
TheDivisionhopes,throughcollectionofthisdata,toimprovetheapprenticeshipprogrambothforthosepresentlyenrolledandforfuture
apprentices. Thank you.
CALIFORNIA APPRENTICE QUESTIONNAIRE
(USE INK OR BALLPOINT PEN)
WHITE (Not of Hispanic Origin) -- A person having origins in
any of the original peoples of Europe, North Africa or the Middle
East.
BLACK (Not of Hispanic Origin) -- A person having origins in
any of the Black racial groups of Africa.
Number of Years You Have Been Employed Full Time to Date
(Except for Military Service)
ASIAN OR PACIFIC ISLANDER -- A person having origins in
any of the original peoples of the Far East, Southeast Asia, the
Indian Subcontinent or the Pacific Islands. The area includes,
for example, China, Japan, Korea and Samoa.
AMERICAN INDIAN OR ALASKAN NATIVE -- A person having
origins in any of the original peoples of North America, and who
maintains cultural identification through tribal affiliation or
community recognition.
Have You Served on Active Duty (other than reserve status) in
the U. S. Armed Forces?
HISPANIC -- A person of Mexican, Puerto Rican, Cuban, South
Central American or other Spanish culture or origin, regardless
of race.
4 or more Years of
College
12th Grade (or GED
Certificate)
Apprentice's Signature _____________________________________
5/13/2014 DAS CAC Training Fund Contributions
https://www.dir .ca.g ov/das/tf/cac2.asp 1/3
CAC - Training Fund Contributions
You must enter all req uested infomation in order to ensure successful submission and processing of your
payment.
Training Fund Contributions are due on the 1 5th of each month.
All fields with * are required.
You must use the BUTTONon the bottom of the page to submit for an invoice coupon.
TO NAVIGATE BETWEEN FIELDS, DO NOT HIT RETURN OR ENTER KEY AFTER EACH ENTRY. USE THE TAB KEY
INSTEAD.
You need to have a working printer currently connected to your computer in order to print the complete
paper form in the end of this session so that you can mail it with your payment.
Training Fund Contributions Form CAC2
Date: 5/13/2014
CLEAR FORM
Contractor/Sub
Contractor
making contributions
Contractor Period covered
by contribution
(from – to)
Jobsite Location
(including County)
* Name:* License Number:* Period Start:If applicable, give name of school,
hospital, building, etc.
* Address:
* City:
* State:
* ZIP:
* Contract/Project
Number
* Period End:
(MM/DD/YYYY)
Comments:
* Name of the submitting
party:
* Submitter's Title:
* Submitter's Email:
*Submitter's Phone:
e.g., (999) 999-99 99
CA.gov | Top Link | Top Link | Top Link | Top Link
Home Labor Law Cal/OSHA - Safety & Health W orkers' Comp Self Insurance Apprenticeship Director's Office Boards
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5/13/2014 DAS CAC Training Fund Contributions
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Conditions of Us e
Pr ivacy Policy
Dis claim e r
Instructions: You may want to use the keyboard TAB key to navigate the fields and the Up /\ | Down \/
ARROW keys to select a list item.
* County of Work * Classification * Hours (max: 9 ,9 99.99)* Rate (max: $9.99)Amount
*1) Selec t a c ounty Select an occ upation 0 $ 0 $ 0.00
2) Selec t a c ounty Select an occ upation 0 $ 0 $ 0.00
3) Selec t a c ounty Select an occ upation 0 $ 0 $ 0.00
4) Selec t a c ounty Select an occ upation 0 $ 0 $ 0.00
5) Selec t a c ounty Select an occ upation 0 $ 0 $ 0.00
6) Selec t a c ounty Select an occ upation 0 $ 0 $ 0.00
7) Selec t a c ounty Select an occ upation 0 $ 0 $ 0.00
8) Selec t a c ounty Select an occ upation 0 $ 0 $ 0.00
9) Selec t a c ounty Select an occ upation 0 $ 0 $ 0.00
10 ) Selec t a c ounty Select an occ upation 0 $ 0 $ 0.00
11 ) Selec t a c ounty Select an occ upation 0 $ 0 $ 0.00
12 ) Selec t a c ounty Select an occ upation 0 $ 0 $ 0.00
13 ) Selec t a c ounty Select an occ upation 0 $ 0 $ 0.00
14 ) Selec t a c ounty Select an occ upation 0 $ 0 $ 0.00
15 ) Selec t a c ounty Select an occ upation 0 $ 0 $ 0.00
16 ) Selec t a c ounty Select an occ upation 0 $ 0 $ 0.00
17 ) Selec t a c ounty Select an occ upation 0 $ 0 $ 0.00
18 ) Selec t a c ounty Select an occ upation 0 $ 0 $ 0.00
19 ) Selec t a c ounty Select an occ upation 0 $ 0 $ 0.00
20 ) Selec t a c ounty Select an occ upation 0 $ 0 $ 0.00
TOTAL AMOUNT: $ 0.00
When done with some or all the entries above, please carefully review and then enter the code you see
below:
Calc ulate Total Amount
November 2013
Labor Commissioner, State of California
Department of Industrial Relations
Division of Labor Standards Enforcement TAKENBY:
DIVISION USE ONLY:
CASE #
DATETAKEN: ASSIGNED TO:
OFFICE:DATERECEIVED:
DATEASSIGNED:
PUBLIC WORKS – WORKER COMPLAINT
The following information is important andmust be provided.
Complainant/Worker Information
1. FIRST NAME 2. LAST NAME 3. HOME TEL. NO. 4. WORK/CELLULAR NO
5. CONTACT ADDRESS 6. CITY 7. STATE/ ZIP CODE 8. EMAIL ADDRESS
Project Information
Note: A separate form must be completed for each project in which you are alleging a violation of prevailing wages.
9. PROJECT NAME (If known)
10. LIST THE ADDRESSES OF THE PROJECT WHERE YOU PERFORMED WORK:
Complaint Against
11. NAME OF BUSINESS/CONTRACTOR/EMPLOYER 12. CONTRACTOR’S STATE LIC.
NO
13. ADDRESS 14. BUSINESS TEL.NO
15. NAME OF PERSON IN CHARGE/ TITLE 16. EMAIL ADDRES 17. ARE YOU STILL WORKING FOR THIS CONTRACTOR?
Awarding Body
18. NAME OF PUBLIC AGENCY/AWARDED CONTRACT ENTITY
19. ADDRESS 20.BUSINESS TEL.NO
21. NAME OF PERSON IN CHARGE/ TITLE 22.EMAIL ADDRESS
23. DATE PROJECT BEGAN24.ESTIMATED COMPLETION DATE 25. DATE OF NOTICEOF COMPLETION
General Contractor (Prime Contractor)
26. NAME OF GENERAL CONTRACTOR 27. CONTRACTOR’S STATE LIC.
28. ADDRESS 29.BUSINESS TEL.NO
30. NAME OF PERSON IN CHARGE/ TITLE 31. EMAIL ADDRESS
Issues
32. BRIEF EXPLAINATIONOFISSUES: (Check all applicable boxes)
ġġġNon-payment /Underpayment of wages
ġġġUnpaid overtime/Sat/Sun/Holiday rate
ġ Not paid travel and subsistence
ġ Misclassification of worker ġ
ġ Under reporting of hours
ġ Insufficient fund check
ġ Fringe benefits not paid Other
DLSE-PW 1 (Revised Sept/2012) (Continued on next page)
Employment Information
33.WHATWASYOURJOBTITLE?
34.DESCRIBE YOUR JOB DUTIES?
35.WHATTOOLSDIDYOUUSE TOPERFORM YOURJOB DUTIES?
36.HOWWEREYOUPAID?ġ Check ġ Cash Direct Deposit ġġġġġġġOther
37.WEREYOU GIVENA CHECKSTUB?ġ Yes ġ No
38.HOWOFTENWEREYOUPAID?ġ Daily Weekly ġBi-weekly Monthly ġġġġġġSemi-Monthly ġġOther
39.HOWMUCHWEREYOUPAID?$ ______________________ġ PerHour ġġPerDay ġ Per Week
40.WEREYOUPAID: (Pleasecheckall applicableboxes)
ġ OvertimeRate No ___ Yes ___ $ġŠŠŠŠŠŠŠġġŠŠŠŠŠŠŠŠ SaturdayRate No ___ Yes ___ $ŠŠŠŠŠŠŠġġŠŠŠŠŠŠŠŠŠŠŠ
ġ DoubleTimeRate No ___ Yes ___ $ŠŠŠŠŠŠŠŠġġŠŠŠŠŠŠŠġ Sun/HolidayRate No ___ Yes ___ $ŠŠŠŠŠŠŠŠġġŠŠŠŠŠŠŠŠŠġġ
41.DIDYOUREMPLOYER KEEP TIME ANDPAYROLL
RECORDS?ġ Yes ġ No ġ DoNotKnow
42.WHOWASINPOSSESSIONOF THESERECORDS?
43.DIDYOUKEEPANACCURATERECORD OFYOURHOURS WORKED?
ġ Yes ġ No
44. DATES YOU WORKED ON THIS PROJECT:
45.DIDYOUWORKONANOTHERPROJECTATTHESAMETIMEYOUWORKEDONTHIS PROJECT?ġġġġYes ġ No
46.IF YES,FORWHO?WHERE?WHEN?HOURS
47.DIDYOURECEIVE TRAVELANDSUBSISTENCEPAYMENT?ġ NO ġġYES, IF YES, HOW MUCH? $___________________
48. LIST CO-WORKERS/WITNESS INFORMATION:
Estimated number of workers who you are working with in this project:___________________________________________________________
Please provide names, addresses, telephone numbers, and type of work of other workers? Please list their names below. Use add itional sheets as
necessary.
I hereby certify that this is a true statement to the best of my knowledge and belief.
MY NAME MAY BE USED IN THIS INVESTIGATION. ġ Yes ġ No
____________________________________ ____________________________________
Signature Date
DLSE-PW 1 (Revised Sept/2012)
Name of Worker Address Telephone No.Types of Work Performed
1)
2)
3)
[Name and Contact Information for person issuing Notice]
Date: Case or Contract No.:
NOTICE OF TEMPORARY WITHHOLDING OF CONTRACT PAYMENTS DUE
TO DELINQUENT OR INADEQUATE PAYROLL RECORDS (8 CCR §16435)
Awarding Body:
Work performed in County of:
Project Name and Number (if any):
Prime Contractor:
Subcontractor:
Pursuant to Labor Code §1771.5(b)(5) and 8 CCR §16435, contract payments are being withheld due to
delinquent or inadequate payroll records.
Contractor or subcontractor whose payroll records are delinquent or inadequate:
The following payroll records are delinquent (specify weeks and due dates):
The following payroll records are inadequate (specify weeks and ways in which records are
deemed inadequate under 8 CCR §16435(d)):
Estimated amount of contract payments due to contractor or subcontractor that are being withheld
pursuant to this Notice:
See page 2 for additional information, including appeal rights.
Labor Compliance Officer
Prime Contractor Obligations: If contract payments are being withheld due to the delinquency or
inadequacy of your subcontractor’s payroll records, you are required to cease all payments to that
subcontractor until the Labor Compliance Program provides notice that the subcontractor has cured the
delinquency or deficiency.
Notice of Right to Obtain Review – Expedited Hearing
An affected contractor or subcontractor may request review an expedited hearing to review this Notice
of Withholding of Contract Payments under Labor Code §1742. The only issue in any such review
proceeding is whether the specified payroll records are in fact delinquent or inadequate within the
meaning of 8 CCR §16435 or whether the Labor Compliance Program has exceeded its authority under
8 CCR §16435. To obtain an expedited hearing, a written request must be transmitted to the both
the Labor Compliance Program and to the Lead Hearing Officer for the Director of the
Department of Industrial Relations, as follows:
[Name of Labor Compliance Officer,
address, and fax number]
Office of the Director – Legal Unit
Attention: Lead Hearing Officer
Expedited Hearing Request
Fax to: (415) 703-4277
The request for expedited hearing should specify the basis for challenging this Notice and include a copy
of this Notice as an attachment. The request should also identify and provide contact information for the
person who will represent the contractor or subcontractor at the hearing.
Important Additional Information: This is a Notice of Temporary Withholding of Contract Payments
for Delinquent or Inadequate Payroll Records only. This is not a determination of liability for wages or
penalties under Labor Code §§1775 and 1776 or any other statute. Contract payments cannot continue
to be withheld pursuant to this notice, once the required records have been produced. However, the
contractor and subcontractor may still be subject to the assessment of back wages and penalties and the
withholding of contract payments if, upon investigation, a determination is made that the contractor or
subcontractor violated the public works requirements of the Labor Code.
This Notice only addresses rights and responsibilities under state law. Awarding bodies, labor
compliance programs, and contractors may have other rights or responsibilities under federal or local
law, where applicable, and may also have additional rights or remedies under the public works contract.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Enclosure – text of 8 CCR §16435
§16435. Withholding Contract Payments When Payroll Records are Delinquent or Inadequate.
(a) "Withhold" means to cease payments by the Awarding Body, or others who pay on its behalf, or agents, to the
general contractor. Where the violation is by a subcontractor, the general contractor shall be notified of the nature
of the violation and reference made to its rights under Labor Code Section 1729.
(b) "Contracts." Except as otherwise provided by agreement, only contracts under a single master contract,
including a Design-Build contract, or contracts entered into as stages of a single project, may be the subject of
withholding.
(c) "Delinquent payroll records" means those not submitted on the date set in the contract.
(d) "Inadequate payroll records" are any one of the following:
(1) A record lacking any of the information required by Labor Code Section 1776;
(2) A record which contains all of the required information but is not certified, or is certified by someone who is
not an agent of the contractor or subcontractor;
(3) A record remaining uncorrected for one payroll period after the Labor Compliance Program has given the
contractor or subcontractor notice of inaccuracies detected by audit or record review. However, prompt
correction will stop any duty to withhold if such inaccuracies do not amount to one (1) percent of the entire
Certified Weekly Payroll in dollar value and do not affect more than half the persons listed as workers employed
on that Certified Weekly Payroll, as defined in Labor Code Section 1776 and section 16401 of Title 8 of the
California Code of Regulations.
(e) The withholding of contract payments when payroll records are delinquent or inadequate is required by Labor
Code Section 1771.5(b)(5), and it does not require the prior approval of the Labor Commissioner. The Awarding
Body shall only withhold those payments due or estimated to be due to the contractor or subcontractor whose
payroll records are delinquent or inadequate, plus any additional amount that the Labor Compliance Program has
reasonable cause to believe may be needed to cover a back wage and penalty assessment against the contractor or
subcontractor whose payroll records are delinquent or inadequate; provided that a contractor shall be required in
turn to cease all payments to a subcontractor whose payroll records are delinquent or inadequate until the Labor
Compliance Program provides notice that the subcontractor has cured the delinquency or deficiency.
(f) When contract payments are withheld under this section, the Labor Compliance Program shall provide the
contractor and subcontractor, if applicable, with immediate written notice that includes all of the following: (1) a
statement that payments are being withheld due to delinquent or inadequate payroll records, and that identifies
what records are missing or states why records that have been submitted are deemed inadequate; (2) specifies the
amount being withheld; and (3) informs the contractor or subcontractor of the right to request an expedited
hearing to review the withholding of contract payments under Labor Code Section 1742, limited to the issue of
whether the records are delinquent or inadequate or the Labor Compliance Program has exceeded its authority
under this section.
(g) No contract payments shall be withheld solely on the basis of delinquent or inadequate payroll records after
the required records have been produced.
(h) In addition to withholding contract payments based on delinquent or inadequate payroll records, penalties
shall be assessed under Labor Code Section 1776(g) for failure to timely comply with a written request for
certified payroll records. The assessment of penalties under Labor Code Section 1776(g) does require the prior
approval of the Labor Commissioner under section 16436 of these regulations.
1
Labor Compliance Program Regulations – APPENDIX D
REQUEST FOR APPROVAL OF FORFEITURE -- Suggested format
1. AWARDING BODY / THIRD PARTY LCP:
Name and Contact Information:
Date of Request:
Name and Contact Information for Awarding Body if different
from LCP:
LCP Approval Status (specify if either
interim or temporary or if LCP has
extended authority):
2. PROJECT INFORMATION:
Project Name:
Contract Number:
Project Location:
Bid Advertisement Dates:
Estimated Date Project is to be completed:
Acceptance Date of Project by the Awarding
Body:
Notice of Completion/Date Recorded with County
Recorder:
Other Relevant Deadline (specify): Amount being held in Retention:
3. CONTRACTOR INFORMATION:
Name and address of Affected Contractor:
Name and address of Affected Subcontractor:
General Description of Scope of Work of the Entire Project:
General Description of Scope of Work covered in the proposed Forfeiture (describe and attach relevant
portions of contract or subcontract):
4. LABOR COMPLIANCE PROGRAM INVESTIGATION AND FINDINGS:
Total Amount of Request for Notice of Withholding of Contract Payments:
Wages Due:
Training Funds
Due:
Total Penalties Due:
Potential Liquidated Damages
[Wages + Training Funds]:
LC 1775 Penalties Due: LC 1813 Penalties
Due:
LC 1776 Penalties Due:
Other:
[Provide narrative summaries covering the following]:
A. Statement of Issues.
B. Investigative Report (detailed narrative including but not limited to how the investigation was
conducted including worker declarations, reviewing certified payroll records, verification of employer
payment contributions, etc.).
C. Audit Report (detailed explanation of how audit was completed addressing each of the issues above).
D. Affected contractor and subcontractor information (how affected contractor and subcontractor were
informed of potential violations; summary of their response with respect to violations and penalty issues;
and any other information considered in determining recommended penalties).
E. Recommended penalties under Labor Code Section 1775(a) and basis for recommendation,
including how factors in subsection (a)(2) of Section 1775 were applied to arrive at the recommended
amount(s).
ATTACHMENTS
1. Audit Summary (Appendix B)
2. 1st
3. Notice of Completion
Bid Advertisement Publication
4. Scope of Work
5. Complaint form(s) and Declarations, if any
Send the Request and all Attachments to:
Division of Labor Standards Enforcement
Bureau of Field Enforcement
Attn.: Regional Manager
300 Oceangate Blvd., No. 850
Long Beach, CA 90802
COPIES OF THIS REQUEST, INCLUDING ALL ATTACHMENTS, SHALL BE SERVED ON
THE AFFECTED CONTRACTOR AND AFFECTED SUBCONTRACTOR AT THE SAME TIME
THAT IT IS SENT TO THE DIVISION OF LABOR STANDARDS ENFORCEMENT.
Single Project Labor Compliance Review and Enforcement Report Form
[Appendix C following 8 CCR §16434]
Awarding Body:
Project Name:
Name of Approved Labor Compliance Program:
Bid Advertisement Date:
Acceptance Date:
Notice of Completion Recordation Date:
Summary of Labor Compliance Activities
1. Contract Documents Containing Prevailing Wage Requirements (Identify)
2. Prejob Conference(s) -- Attach list(s) of attendees and dates
3. Notification to Project Workers of Labor Compliance Program’s Contact Person. (Explain
Manner of Notification for each project work site.)
4. Certified Payroll Record Review
a. CPRs Received From:
Contractor/Subcontractor For weeks ending (“w/e”) through w/e
b. Classifications identified in CPRs and applicable Prevailing Wage Determinations
Classification Determination No.
5. Further investigation or audit due to CPR review, information or complaint from worker or other interested
person, or other reason:
a. Independent Confirmation of CPR Data
Worker Interviews Reconciled CPRs with Pay-
Contractor/Subcontractor (Yes/No) checks or Stubs (Yes/No)
b. Employer Payments (Health & Welfare, Pension, Vacation/Holiday) Confirmation
Recipients of Written confirmation
Contractor/Subcontractor Employer Payments Obtained (Yes/No)
c. Contributions to California Apprenticeship Council or Other Approved Apprenticeship Program
Recipients of Written confirmation
Contractor/Subcontractor Contributions Obtained (Yes/No)
d. Additional Wage Payments or Training Fund Contributions Resulting from Review of CPRs
Additional amounts Additional
Contractor/Subcontractor Paid to Workers Training Fund Explanation
*
*
*
*
* Use separate page(s) for explanation
6. Complaints Received Alleging Noncompliance with Prevailing Wage Requirements.
Name of Resolution or
Complainant Date Received Current Status
*
*
*
*
*Use separate page(s) to explain resolution or current status
7. Requests for Approval of Forfeiture to Labor Commissioner
Contractor/Subcontractor Date of Request Approved/Modified/Denied
8. Litigation Pending Under Labor Code Section 1742
Contractor/Subcontractor DIR Case Number
9. (Check one): Final report this project Annual report this project
Authorized Representative for Labor Compliance Program
LABOR COMPLIANCE PROGRAM
________________________________
Review Office - Notice of Withholding
of Contract Payments
_________________________________
_________________________________
_________________________________
Phone:
Fax:
(SEAL )
Date:
In Reply Refer to Case No.:
Notice of Transmittal
To: Department of Industrial Relations
Office of the Director-Legal Unit
Attention: Lead Hearing Officer
P. O. Box 420603
San Francisco, CA 94142-0603
Enclosed herewith please find a Request for Review, dated __________________, postmarked
___________________, and received by this office on ____________________.
Also enclosed please find the following:
____ Copy of Notice of Withholding of Contract Payments
____ Copy of Audit Summary
LABOR COMPLIANCE PROGRAM
________________________________
By:_____________________________
cc: Prime Contractor
Subcontractor
Bonding Company
Please be advised that the Request for Review identified above has been received and
transmitted to the address indicated. Please be further advised that the governing
procedures applicable to these hearings are set forth at Title 8, California Code of
Regulations sections 17201-17270. These hearings are not governed by Chapter 5 of
the Government Code, commencing with section 11500.
LABOR COMPLIANCE PROGRAM
________________________________
Review Office - Notice of Withholding
of Contract Payments
_________________________________
_________________________________
_________________________________
Phone:
Fax:
(SEAL )
Date:
In Reply Refer to Case No.:
Notice of Opportunity to Review Evidence Pursuant to Labor Code Section 1742(b)
To: Prime Contractor
__________________________
__________________________
__________________________
Subcontractor
__________________________
__________________________
__________________________
Please be advised that this office has received your Request for Review, dated _____________,
and pertaining to the Notice of Withholding of Contract Payments issued by the Labor
Compliance Program in Case No. _____________.
In accordance with Labor Code section 1742(b), this notice provides you with an opportunity to
review evidence to be utilized by the Labor Compliance Program at the hearing on the Request
for Review, and the procedures for reviewing such evidence.
Rule 17224 of the Prevailing Wage Hearing Regulations provides as follows:
A(a) Within ten (10) days following its receipt of a Request for Review, the
Enforcing Agency shall also notify the affected contractor or subcontractor of its
opportunity and the procedures for reviewing evidence to be utilized by the
Enforcing Agency at the hearing of the Request for Review.
(b) An Enforcing Agency shall be deemed to have provided the opportunity to
review evidence required by this Rule if it (1) gives the affected contractor or
subcontractor the option at said party's own expense to either (i) obtain copies of
all such evidence through a commercial copying service or (ii) inspect and copy
such evidence at the office of the Enforcing Agency during normal business
hours; or if (2) the Enforcing Agency at its own expense forwards copies of all
such evidence to the affected contractor or subcontractor.
(c) The evidence required to be provided under this Rule shall include the identity
of witnesses whose testimony the Enforcing Agency intends to present, either in
person at the hearing or by declaration or affidavit. This provision shall not be
construed as requiring the Enforcing Agency to prepare or provide any separate
listing of witnesses whose identities are disclosed within the written materials
made available under subpart (a).
(d) The Enforcing Agency shall make evidence available for review as specified
in subparts (a) through (c) within 20 days of its receipt of the Request for Review;
provided that, this deadline may be extended by written request or agreement of
the affected contractor or subcontractor. The Enforcing Agency's failure to make
evidence available for review as required by Labor Code section 1742(b) and this
Rule, shall preclude the enforcing agency from introducing such evidence in
proceedings before the Hearing officer or the Director.
(e) This Rule shall not preclude the Enforcing Agency from relying upon or
presenting any evidence first obtained after the initial disclosure of evidence under
subparts (a) through (d), provided that, such evidence is promptly disclosed to the
affected contractor or subcontractor. This Rule also shall not preclude the
Enforcing Agency from presenting previously undisclosed evidence to rebut new
or collateral claims raised by another party in the proceeding.@
In accordance with the above Rule, please be advised that the Labor Compliance Program's
procedure for you to exercise your opportunity to review evidence is as follows:
Within five calendar days of the date of this notice, please transmit the
attached Request to Review Evidence to the following address:
________________________________
________________________________
________________________________
________________________________
________________________________
Attention:________________________
Request to Review Evidence
To: ______________________________
______________________________
______________________________
______________________________
From:______________________________
______________________________
______________________________
______________________________
Regarding Notice of Withholding of Contract Payments Dated ____________
Our Case No.: _________________
The undersigned hereby requests an opportunity to review evidence to be utilized
by the Labor Compliance Program at the hearing on the Request for Review.
________________________________
Phone No.:_______________________
Fax No.:_________________________
LCP-AR1
LCP ANNUAL REPORT 8 CCR § 16431 -- AB limited 2006
LABOR COMPLIANCE PROGRAM ANNUAL REPORT
Suggested Format for Awarding Body that enforces its own Labor Compliance Program for some but not all projects
Report for the reporting period ______________ to _____________
1. Name of Labor Compliance Program (LCP) :
(mm/dd/yyyy) (mm/dd/yyyy)
2. LCP I.D. Number (assigned by DIR):
3. Date of Initial Approval:
4. Contact person (include name, title, address, telephone, fax, and e-mail, if available):
5. Did LCP perform any LC § 1771.5 enforcement activities during the 12 months in the reporting period?
Please check one: Yes If Yes, proceed to item 6 on the next page
No If No, complete the information below, sign the form and submit to DIR, Office of the Director, Attn: LCP Special Assistant,
455 Golden Gate Avenue, 10th Floor, San Francisco CA 94102
What suggestions do you have for the Department of Industrial Relations to better assist you with your program in the coming year? (attach additional sheets if
necessary)
SUBMITTED BY:
___________________________________________ ________________________________________________________ ________________________________
Signature Name and Title Date
LCP-AR1
LCP ANNUAL REPORT 8 CCR § 16431 -- AB limited 2006
6. LC § 1771.5 enforcement activities (provide all information requested, attaching as many sheets as necessary).
A. List projects handled by LCP within the past 12 months.
Project Name Bid Advertisement Date Prime Contractor Contract Amount
Total
B. Summary of all wages and penalties assessed and/or recovered.
Project Name
Affected Contractor
(who directly employed the
worker)
Amount
Assessed
Amount
Recovered
Approval of
Forfeiture
Requested from
Labor
Commissioner?
Description of Violation
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Total
LCP-AR1
LCP ANNUAL REPORT 8 CCR § 16431 -- AB limited 2006
C. For any amount identified in item B for which approval of forfeiture not requested from the Labor Commissioner, please explain below.
Project Name Amount Assessed Amount
Recovered Explanation
Total
D. For any amount identified in item B for which approval of forfeiture was requested from the Labor Commissioner, please provide the following:
Project Amount Assessed Amount Recovered
Name LC §1776(g) LC § 1775 LC § 1813 Wages Total LC § 1776(g) LC § 1775 LC § 1813 Wages Total
Total
E. Identify cases that are or were the subject of LC § 1742 proceedings.
Project Name Contractor Nature of Violation ODL Case # Current Status
F. Did you refer any contractor to the Labor Commissioner for debarment per LC § 1777.1?
Please check one: Yes No
If yes, identify affected contractor(s) or subcontractor(s) and date(s) of referral: __________________________________________________________________
G. Did you refer any apprenticeship violation to the Division of Apprenticeship Standards (DAS)?
Please check one:Yes No
If yes, identify affected contractor(s) or subcontractor(s) and date(s) of referral:
LCP-AR2
LCP ANNUAL REPORT 8 CCR § 16431 -- AB all projects 2006
LABOR COMPLIANCE PROGRAM ANNUAL REPORT
Suggested Format for Awarding Body that enforces its own Labor Compliance Program for all projects (Labor Code §1771.5(a))
Report for the reporting period ______________ to _____________
1. Name of Labor Compliance Program (LCP) :
(mm/dd/yyyy) (mm/dd/yyyy)
2. LCP I.D. Number (assigned by DIR):
3. Date of Initial Approval:
4. Contact person (include name, title, address, telephone, fax, and e-mail, if available):
5. Did LCP perform any LC § 1771.5 enforcement activities during the 12 months in the reporting period?
Please check one: Yes If Yes, proceed to item 6 on the next page
No If No, complete the information below, sign the form and submit to DIR, Office of the Director, Attn: LCP Special Assistant,
455 Golden Gate Avenue, 10th Floor, San Francisco CA 94102
What suggestions do you have for the Department of Industrial Relations to better assist you with your program in the coming year? (attach additional sheets if
necessary)
SUBMITTED BY:
___________________________________________ ________________________________________________________ ________________________________
Signature Name and Title Date
LCP-AR2
LCP ANNUAL REPORT 8 CCR § 16431 -- AB all projects 2006
6. LC § 1771.5 enforcement activities (provide all information requested, attaching as many sheets as necessary).
A. List projects handled by LCP within the past 12 months.
Project Name Bid Advertisement Date Prime Contractor Contract Amount
Total
B. List any project subject to the limited exemption clause of LC § 1771.5(a), if applicable.
Project Name Description of Project Contract Amount
Total
LCP-AR2
LCP ANNUAL REPORT 8 CCR § 16431 -- AB all projects 2006
C. Summary of all wages and penalties assessed and/or recovered.
Project Name
Affected Contractor
(who directly employed the
worker)
Amount
Assessed
Amount
Recovered
Approval of
Forfeiture
Requested from
Labor
Commissioner?
Description of Violation
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Total
D. For any amount identified in item C for which approval of forfeiture not requested from the Labor Commissioner, please explain below.
Project Name Amount Assessed Amount
Recovered Explanation
Total
LCP-AR2
LCP ANNUAL REPORT 8 CCR § 16431 -- AB all projects 2006
E. For any amount identified in item C for which approval of forfeiture was requested from the Labor Commissioner, please provide the following:
Project Amount Assessed Amount Recovered
Name LC §1776(g) LC § 1775 LC § 1813 Wages Total LC § 1776(g) LC § 1775 LC § 1813 Wages Total
Total
F. Identify cases that are or were the subject of LC § 1742 proceedings.
Project Name Contractor Nature of Violation ODL Case # Current Status
G. Did you refer any contractor to the Labor Commissioner for debarment per LC § 1777.1?
Please check one: Yes No
If yes, identify affected contractor(s) or subcontractor(s) and date(s) of referral: ________________________________________________________________
H. Did you refer any apprenticeship violation to the Division of Apprenticeship Standards (DAS)?
Please check one:Yes No
If yes, identify affected contractor(s) or subcontractor(s) and date(s) of referral:
LCP-AR3
LCP ANNUAL REPORT 8 CCR § 16431 -- 3rd Party 2006
LABOR COMPLIANCE PROGRAM ANNUAL REPORT
Suggested Format for Approved Program that contracts with Awarding Bodies to provide labor compliance
enforcement
Report for the reporting period to
1. Name of Labor Compliance Program (LCP) :
(mm/dd/yyyy) (mm/dd/yyyy)
2. LCP I.D. Number (assigned by DIR):
3. Date of Initial Approval:
4. Contact person (include name, title, address, telephone, fax, and e-mail, if available):
5. List all Awarding Bodies covered by this report as well as any other Awarding Bodies with whom the LCP currently has a contract to provide compliance
enforcement. If none, please proceed directly to item 7 and provide all requested information. Then complete the information below, and sign and submit this
form to DIR, Office of the Director, Attn: LCP Special Assistant455 Golden Gate Avenue, 10th Floor, San Francisco, CA 94102.
What suggestions do you have for the Department of Industrial Relations to better assist you with your program in the coming year? (attach additional sheets if
necessary):
SUBMITTED BY:
__________________________________ ____________________________________________ ____________________________
Signature Name and Title Date
LCP-AR3
LCP ANNUAL REPORT 8 CCR § 16431 -- 3rd Party 2006
6. LC § 1771.5 enforcement activities (provide all information requested, attaching as many sheets as necessary, and please complete separate forms for each
Awarding Body covered in this report).
Awarding Body:
A. List projects handled by LCP within the past 12 months.
Project Name Bid Advertisement Date Prime Contractor Contract Amount
Total
B. Summary of all wages and penalties assessed and/or recovered.
Project Name
Affected Contractor
(who directly employed the
worker)
Amount
Assessed
Amount
Recovered
Approval of
Forfeiture
Requested from
Labor
Commissioner?
Description of Violation
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Total
LCP-AR3
LCP ANNUAL REPORT 8 CCR § 16431 -- 3rd Party 2006
C. For any amount identified in item B for which approval of forfeiture not requested from the Labor Commissioner, please explain below.
Project Name Amount Assessed Amount
Recovered Explanation
Total
D. For any amount identified in item B for which approval of forfeiture was requested from the Labor Commissioner, please provide the following:
Project Amount Assessed Amount Recovered
Name LC §1776(g) LC § 1775 LC § 1813 Wages Total LC § 1776(g) LC § 1775 LC § 1813 Wages Total
Total
E. Identify cases that are or were the subject of LC § 1742 proceedings.
Project Name Contractor Nature of Violation ODL Case # Current Status
F. Did you refer any contractor to the Labor Commissioner for debarment per LC § 1777.1?
Please check one: Yes No
If yes, identify affected contractor(s) or subcontractor(s) and date(s) of referral: ______________________________________________________
G. Did you refer any apprenticeship violation to the Division of Apprenticeship Standards (DAS)?
Please check one:Yes No
If yes, identify affected contractor(s) or subcontractor(s) and date(s) of referral:
LCP-AR3
LCP ANNUAL REPORT 8 CCR § 16431 -- 3rd Party 2006
7. On a separate sheet, provide a certificate of compliance with the conflict of interest disclosure requirements by employees and consultants who participate in
making governmental decisions (as defined under per 2 CCR § 18701), along with the names of LCP personnel who are filing disclosure statements and the
agencies with which those statements are being filed.
8. Please update the following information per 8 CCR § 16426(a)(2), (3) and (5) disclosure requirement.
A. Identify the geographical areas in which the program intends to operate and the identity of any public agencies not previously identified in this report with
which the program intends to contract to provide labor compliance enforcement.
B. State whether the entity shares personnel, management, ownership or other close affiliation with any of the following: (1) any contractor or subcontractor that
within the preceding five years has been awarded a public works contract within the geographical area in which the program operates or intends to operate or with
any public agency with which the program has contracted or intends to contract to provide labor compliance enforcement; (2) any person or entity who has been the
surety on such a contract; (3) any joint labor-management committee established pursuant to the Federal Labor Management Cooperation Act of 1978 (section
175a of Title 29 of the United States Code); or (4) any person or entity who has represented workers employed in the same or similar classifications as those
employed for such a contract and who has been engaged in (i) an organizational campaign under the National Labor Relations Act with contractors competing for
such contracts or (ii) a jurisdictional dispute with another collective bargaining representative of workers utilized for such contracts.
For each affiliation, please provide the name, address, telephone number, and principal contact person for the person or entity; please identify shared personnel,
management, and ownership; and if applicable, please provide a short description of the nature and extent of any other close affiliation:
C. Identify the attorney or law firm available to provide legal support for the LCP, and whether the persons or firms providing that support also represent any
contractor, subcontractor, surety, or worker representative referred to in the preceding item.
Attorney/Law Firm Name (include address, contact person, and telephone number)
DIR-PWC 100 (rev. 10/11) successor to the DAS 13 form
STATE OF CALIFORNIA – DEPARTMENT OF INDUSTRIAL RELATIONS
TO: California Department of Industrial Relations
Division of Apprenticeship Standards
P.O. Box 420603
San Francisco, CA 94142
FROM:
EXTRACT OF
PUBLIC WORKS CONTRACT AWARD
A CONTRACT TO PERFORM PUBLIC WORKS UNDER LABOR CODE SECTION 1777.5 HAS BEEN AWARDED TO:
1. NAME OF GENERAL CONTRACTOR
2. CONTRACTOR’S LICENSE NO
3. MAILING ADDRESS (STREET NUMBER OR P.O. BOX)
4. CITY
5. ZIP CODE
6. TELEPHONE NUMBER
7. GENERAL CONTRACTOR’S CONTACT EMAIL ADDRESS
8. ADDRESS/LOCATION OF PUBLIC WORKS SITE (INCLUDE CITY AND
COUNTY):
8a. County
9. . NAME OF PROJECT
10. CONTRACT NUMBER
11. PROJECT NUMBER
12. DOLLAR AMOUNT OF CONTRACT AWARD
13 . FIRST ADVERTISED BID DATE
MONTH DAY YEAR
14 CONTRACT AWARD DATE
MONTH DAY YEAR
12a ESTIMATED TOTAL PROJECT COSTS, IF DIFFERENT FROM
ITEM 12 (see instructions).
15. WHICH STATUTE, IF ANY, APPLIES TO THIS PROJECT?
16. STATE CONSTRUCTION BONDS YES NO
If YES, List the Sources and Dollar Amount of Bond Proceeds: SOURCES DOLLAR AMOUNT
17. WILL YOU OPERATE A DIR-APPROVED LABOR COMPLIANCE
PROGRAM (LCP) FOR THIS PROJECT?
YES NO
18. IS THERE A PROJECT LABOR AGREEMENT (PLA) ASSOCIATED
WITH THIS PROJECT? If yes, please email a copy to cmupla@dir.ca.gov
YES NO
19. STARTING DATE (ESTIMATED OR ACTUAL)
(MM/DD/YYYY)
20. COMPLETION DATE (ESTIMATED OR ACTUAL)
(MM/DD/YYYY)
21. BRIEF DESCRIPTION OF WORK TO BE PERFORMED
22
. NEW CONSTRUCTION REMODELING
ALTERATION, DEMOLITION, REPAIR OR MAINTENANCE
23. CLASSIFICATION OR TYPE OF WORKER (CARPENTER, PLUMBER, ETC.) THAT WILL BE EMPLOYED BY THE CONTRACTOR(S)
Please list Sub-contractors and their worker classifications on page 2
24.
Is language included in the Contract Award to effectuate the requirements of
sections 1771, 1774, 1775, 1776, 1777.5, 1813, and 1815 of the Labor Code?
YES NO
25. SIGNATURE
26. TITLE
27. DATE
28. PRINTED OR TYPED NAME
29. E-MAIL ADDRESS
30. TELEPHONE NUMBERS
If different from above, name, title, and contact information of person responsible for carrying out Awarding Body’s LCP or CMU responsibilities.
31. NAME
32. TITLE
33. E-MAIL ADDRESS
34. TELEPHONE NUMBER
Duplication of this form is permissible
AWARDING AGENCY ID NUMBER
If you do not have an ID number please contact DAS
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NOTICE TO PUBLIC ENTITY
For Privacy Considerations
Fold back along dotted line prior to copying for release to general public (private persons).
(Paper Size then 8-1/2 x 11 inches)
I, , the undersigned, am the
(Name – print)
with the authority to act for and on behalf of
(Position in business)
, certify under penalty of perjury
(Name of business and/or contractor)
that the records or copies thereof submitted and consisting of
(Description, number of pages)
are the originals or true, full, and correct copies of the originals which depict the payroll record(s)
of the actual disbursements by way of cash, check, or whatever form to the individual or
individuals named.
Date: Signature:
A public entity may require a stricter and/or more extensive form of certification.
Labor Compliance Program
_________________________________
_________________________________
_________________________________
_________________________________
Phone:
Fax:
(SEAL )
Date:
In Reply Refer to Case No.:
Notice of Withholding of Contract Payments
Awarding Body ³ Work Performed in County of
Project Name ³ Project No.
Prime Contractor
Subcontractor
After an investigation concerning the payment of wages to workers employed in the execution of the contract
for the above-named public works project, the Labor Compliance Program for _______________
_______________________ (Awarding Body) has determined that violations of the California Labor Code
have been committed by the contractor and/or subcontractor identified above. In accordance with Labor
Code sections 1771.5 and 1771.6, the Labor Compliance Program hereby issues this Notice of Withholding
of Contract Payments.
The nature of the violations of the Labor Code and the basis for the assessment are as follows:
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
The Labor Compliance Program has determined that the total amount of wages due is:
$___________________
The Labor Compliance Program has determined that the total amount of penalties assessed under Labor
Code sections 1775 and 1813 is: $__________________
The Labor Compliance Program has determined that the amount of penalties assessed under Labor Code
section 1776 is: $__________________
LABOR COMPLIANCE PROGRAM
_____________________________________
By:__________________________________
Notice of Right to Obtain Review - Formal Hearing
In accordance with Labor Code sections 1742 and 1771.6, an affected contractor or subcontractor may obtain
review of this Notice of Withholding of Contract Payments (NWCP) by transmitting a written request to the
office of the Labor Compliance Program that appears below within 60 days after service of the notice. To
obtain a hearing, a written Request for Review must be transmitted to the following address:
Labor Compliance Program
_________________________________________
Review Office-Notice of Withholding of Contract Payments
_________________________________________
_________________________________________
A Request for Review either shall clearly identify the Notice of Withholding of Contract Payments from
which review is sought, including the date of the notice, or it shall include a copy of the notice as an
attachment, and shall also set forth the basis upon which the notice is being contested. In accordance with
Labor Code section 1742, the contractor or subcontractor shall be provided an opportunity to review
evidence to be utilized by the Labor Compliance Program at the hearing within 20 days of the Labor
Compliance Program's receipt of the written Request for Review.
Failure by a contractor or subcontractor to submit a timely Request for
Review will result in a final order which shall be binding on the
contractor and subcontractor, and which shall also be binding, with
respect to the amount due, on a bonding company issuing a bond that
secures the payment of wages and a surety on a bond. Labor Code
section 1743.
In accordance with Labor Code section 1742(d), a certified copy of a final order may be filed by the Labor
Commissioner in the office of the clerk of the superior court in any county in which the affected contractor
or subcontractor has property or has or had a place of business. The clerk, immediately upon the filing, shall
enter judgment for the State against the person assessed in the amount shown on the certified order.
(continued on next page)
Opportunity for Settlement Meeting
In accordance with Labor Code Section 1742.1 (c), the Labor Compliance Program shall, upon receipt of a
request from the affected contractor or subcontractor within 30 days following the service of this Notice of
Withholding of Contract Payments, afford the contractor or subcontractor the opportunity to meet with the
Labor Compliance Program's designee to attempt to settle a dispute regarding this Notice. The settlement
meeting may be held in person or by telephone and shall take place before the expiration of the 60 -day
period for seeking a hearing as set forth above under the heading Notice of Right to Obtain Review. No
evidence of anything said or any admission made for the purpose of, in the course of, or pursuant to, the
settlement meeting is admissible or subject to discovery in any administrative or civil proceeding. No
writing prepared for the purpose of, in the course of, or pursuant to, the settlement meeting, other than a final
settlement agreement, is admissible or subject to discovery in any administrative or civil proceeding. This
opportunity to timely request an informal settlement meeting is in addition to the right to obtain a formal
hearing, and a settlement meeting may be requested even if a written Request for Review has already been
made. Requesting a settlement meeting, however, does not extend the 60-day period during which a formal
hearing may be requested.
A written request to meet with the Labor Compliance Program's designee to attempt to settle a dispute
regarding this notice must be transmitted to ______________________ at the following address:
_________________________________________
_________________________________________
_________________________________________
Liquidated Damages
In accordance with Labor Code section 1742.1 (a), after 60 days following the service of this Notice of
Withholding of Contract Payments, the affected contractor, subcontractor, and surety on a bond or bonds
issued to secure the payment of wages covered by the notice shall be liable for liquidated damages in an
amount equal to the wages, or portion thereof that still remain unpaid. If this Notice subsequently is
overturned or modified after administrative or judicial review, liquidated damages shall be payable only on
the wages found to be due and unpaid. If the contractor or subcontractor demonstrates to the satisfaction of
the Director of the Department of Industrial Relations that he or she had substantial grounds for believing
this Notice to be an error, the Director shall waive payment of the liquidated damages.
Notwithstanding the above, in accordance with Labor Code 1742.1 (b), there shall be no liability for
liquidated damages if the full amount found due in this Notice, including penalties, has been deposited with
the Department of Industrial Relations, within 60 days following service of this Notice, for the Department
to hold in escrow pending administrative and judicial review. The Department shall release such funds, plus
any interest earned, at the conclusion of all administrative and judicial review to the persons and entities
who are found to be entitled to such funds.
In lieu of a cash deposit, the contractor may post an undertaking with the Department in full amount of the
Notice of Withholding of Contract Payments. The undertaking shall be on the condition that, if any decision
is issued by the Director upholding this Notice in any respect, the contractor shall pay the amount owed
pursuant to a decision that is final under Labor Code Section 1742, unless the parties have executed a
settlement agreement for the payment of some other amount, in which case the contractor shall pay the
amount that the contractor is obligated to pay under the terms of the settlement agreement. The undertaking
must provide that if the contractor fails to pay the amount owed within 10 days of the date the decision is
final or the execution of the settlement agreement, a portion of the undertaking equal to the amount owed, or
the entire undertaking if the amount exceeds the undertaking is forfeited to the Labor Commissioner for the
State of California for the purpose of satisfying the amounts owed under this Notice. A payment bond
obtained by a contractor for the public works project which is the subject to this Notice shall not be accepted
as an undertaking unless the following two conditions are completely satisfied: (1) the payment bond
provides the payment of the full amount of this Notice, including but not limited to, all wages, training, trust
contributions, and penalties, and (2) the conditions of payment set forth above are expressly agreed to by the
affected contractor(s) and the surety which issued the payment bond. The undertaking should be forwarded
to the Department as directed below. The Department’s Accounting Office will hold the undertaking until
the administrative and judicial review is completed. The disbursement of the bond funds will follow the
same process as described above for a cash deposit.
Deposits must be made by check or money order payable to the Department of Industrial Relations with a
letter and a copy of the Notice of Withhold Contract Payments and mailed to:
Department of Industrial Relations
Attention Cashiering Unit
P.O. Box 420603
San Francisco, CA 94142
The Amount of Liquidated Damages Available Under this Notice is $_______________.
Distribution: Attach:
Prime Contractor Audit Summary
Subcontractor Proof of Service
Surety(s) on Bond
Resolution 2014-
Page 1 of 2
RESOLUTION NO. 2014-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH PLACING
MEASURE ON BALLOT FOR THE NOVEMBER 4, 2014 REGULAR MUNICIPAL
ELECTION, TRANSMITTING MEASURE TO CITY ATTORNEY FOR IMPARTIAL
ANALYSIS AND ESTABLISHING DEADLINE FOR ARGUMENTS FOR OR AGAINST
THE MEASURE.
WHEREAS,
1. Election Code Section 10403 authorizes the City Council of the City of Ukiah (City) to
request the Mendocino County Board of Supervisors to conduct a municipal election on behalf of
the City and consolidate that election with any other elections scheduled for that date; and
2. On June 4, 2014, the City Council adopted a resolution requesting the Mendocino
County Board of Supervisors to perform those services and consolidate the City election with
statewide general election scheduled for that date;
3. On June 18, 2014, the City Council adopted Ordinance No. _____, extending the
one-half of one percent sales tax, approved in the election held on June 7, 2005, which only
becomes effective if approved by not less than a majority of the voters voting in the November 4,
2014, election; and
4. The Elections Code requires the City Council to set forth in a resolution the exact form
of any ballot measures to appear on the election ballot and to take other steps related thereto;
NOW, THEREFORE, BE IT RESOLVED that:
1. The City Council hereby places a measure on the ballot for the November 4, 2014,
election which shall read as follows:
MEASURE ___
Shall the one-half of one percent (0.5%) transaction and use tax used to fund essential
public services, including police, fire prevention and protection, and emergency medical services,
Resolution 2014-
Page 2 of 2
set to expire on September 25, 2015, be extended by Ordinance No. ___ until repealed by majority
vote in a municipal election?
[ ] Yes [ ] No
2. Measure form: City of Ukiah Ordinance No. __, enacted by the voters pursuant to
subsection 1 of this Resolution, shall be in the form set forth in Attachment 1.
3. The City Clerk shall transmit a copy of the ballot measure set forth in section 1 of this
Resolution and the form of Ordinance No. ____ set forth in Attachment 1 to this Resolution to the
City Attorney for the preparation of an impartial analysis as required by Elections Code Section
9280.
4. The City Clerk shall post the notice of the deadline for filing ballot arguments for or
against the above ballot measures on __________, 2014.
5. In accordance with Election 9285, ballot arguments for or against the measures are
required to be filed by ________, 2014, after which no arguments for or against the measures will
be accepted.
PASSED AND ADOPTED by the City Council of the City of Ukiah on June 18, 2014, by the
following roll call vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
______________________________
Philip E. Baldwin, Mayor
ATTEST:
______________________
Kristine Lawler, City Clerk