Oct 052013

On February 20, 2009, Governor Arnold Schwarzenegger signed Senate Bill X2-9 to reform the current Labor Compliance Program on how bond-funded projects were monitored. This new measure required awarding agencies to have or to contract with approved Labor Compliance Program (LCP) on specific bond funded projects. The California Department of Industrial Relations created the “Compliance Monitoring Unit,” (CMU) to specialize in providing labor compliance on specific bond measure projects. By utilizing the services of CMU, the awarding agencies pay a capped fee to the Department of Industrial Relations for compliance monitoring and enforcement of prevailing wages.

All projects that are awarded on or after August 1, 2010, CMU will conduct the required monitoring and enforcement of the state’s public works prevailing wage laws on specific state bond funded and/or Design-Build Procurement Construction Projects contracted by public entities. CMU’s mission is to ensure that prevailing wages are paid to the workers, to create a level playing field for contractors, and that all state construction projects are completed in accordance with the state labor laws.

All awarding agencies are mandated to submit a PWC-100 (Extract of Public Works Contract Award Information Form) to the California Department of Industrial Relations Division of Apprenticeship Standards, within five days of the award of the contract, as set forth under Labor Code Section 1773.3 and the California Code of Regulations Title 8, 16451.

We hope that the awarding agencies will comply with the new regulations so that their projects will be successful in every aspect.

For further information about COMPLAINCE MONITORING UNIT (CMU), please visit the Department of Industrial Relations website, at www.dir.ca.gov.