Public Works

Public Works Compliance Monitoring

California DIR Labor Compliance Monitoring for Public Works

Labor Compliance is the monitoring and enforcement of the payment of prevailing wages on public works construction projects.

Prevailing wage is comprised of two elements: basic hourly rate and fringe benefits. Together, they make up the total hourly rate that must be paid to each employee. Federal and State prevailing wage laws exist to ensure that workers engaged in public works projects are paid in accordance to the type of work and location. The prevailing wage rates are usually based on rates specified in collective bargaining agreements.

All construction personnel performing covered craft work on a public works project are entitled to be paid prevailing wage. Architects, Administrative Assistants and Security Guards are not eligible for prevailing wage pay.

Except for public works projects of one-thousand dollars ($1,000) or less, California Labor Code § 1771 requires that “all workers employed on public works” be paid at not less than the “general prevailing rate of per diem wages.” Labor Code § 1772 provides that workers employed “by contractors or subcontractors in the execution of any contract for public work” are deemed to be so employed.

Labor Code § 1720(a) defines public works as construction and other enumerated construction-related tasks (including “maintenance,” see LC § 1771) done under contract and paid for in whole, or in part, with public funds. Maintenance is defined at 8 CCR § 16000.

Projects funded with state or municipal funds are subject to the State of California’s prevailing wage rates. The Labor Commissioner’s Office maintains a web site that contains the latest rates and other valuable information:

Projects financed through federal grants and other types of funding are subject to the Department of Labor’s prevailing wage rates; the following is a link to their web site: Note: When projects are subject to both federal and state prevailing wage requirements, contractors must adhere to both sets of requirements, including paying employees at the higher prevailing wage rate.

California law requires that apprentices be employed on public works projects that have apprenticeable crafts. Apprentices must be in a state approved program and utilized in the correct ratio to the number of journeymen present. If the project has federal funding, apprentices must be in a federally approved program.

Certified Payrolls Reports (CPRs) provide a true and accurate record of the labor hours worked on a project. They are signed under penalty of perjury and are due weekly from the prime contractor and all subcontractors.

CPRs must show the employee’s full name, address, social security number, work classification, straight time and overtime hours worked each day, the actual per diem wages paid, and the payroll check number issued.

Prime contractors are responsible for ensuring that all their subcontractors submit the required payroll documents.

Compliance Monitoring Services We Provide Public Agencies

  • Assist in the Reviews and Responses to Requests for Information during Bidding
  • Evaluate submitted Bids for Accuracy and Look up Past Prevailing Wage Violations by Contractors
  • Conduct Preconstruction Labor Compliance Meetings and or Orientations with Contractors
  • Provide Labor Compliance Monitoring Orientation Materials and Labor Law Compliance Check List(s) to Contractors
  • Furnish and Collect Contractor Information Forms
  • Project File Set Up for Labor Compliance Monitoring and Documentation
  • Forms Collection, Review and Verifications
    • Department of Apprenticeship Standards (DAS) Form 140
    • Department of Apprenticeship Standards (DAS) Form 142
    • California Apprentice Council Training Fund Contribution (CAC-2)
    • Fringe Benefits Statement (FBS) Form PW-26
    • Other forms as necessary
  • Certified Payroll Review
  • Apprentice Oversight
  • On Site Monitoring
  • Field Interviews
  • Audit/Investigation
  • Reports/Correspondence with Owner
  • Address Labor Compliance Inquiries from Contractors
  • Assist the City/County in the Reporting of Suspected Violations of the Prevailing Wage Law to the Labor Commissioner
  • Labor Compliance Closeout Documents
  • Other necessary labor compliance monitoring services

Consulting Services We Provide

  • Review public works preconstruction contracts
  • Monitor DIR contractor/subcontractor certified payrolls
  • Audit labor classification for each worker employed
  • Review DIR pre-DAS 140/142 submissions
  • Review CAC training fund contributions form CAC-2
  • Review DIR Fringe Benefits Statement PW-26
  • Monitor DIR wage determinations
  • Audit fringe benefits allowances
  • Review DIR holiday payment requirements
  • Audit DIR travel & subsistence requirements
  • Caltrans Labor Compliance
  • County of Sacramento Labor Compliance
  • City of Los Angeles Labor Compliance
  • Los Angeles Unified School District Labor Compliance
  • Federal Davis-Bacon Project Monitoring
  • Federal DBE Implementation & Review
  • Federal FAA AIP Goal Setting
  • DIR & Davis-Bacon Training
  • DIR Civil Wage Penalty Review
  • Local-Hire Review (e.g., San Francisco)
  • Skilled and Trained Workforce

Give us a call to discuss your labor compliance requirements: 916-234-3958.

This email is intended for general information purposes only and should not be construed as legal advice
or legal opinions on any specific facts or circumstances.

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