Labor Compliance Program Manual - San Francisco Public Schools

Awarding Body LCP State of California Requirements as of January 21, 2009
Procedures Manual
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CHAPTER 11 – Audit
In order to achieve compliance on Public Works projects, audits shall be conducted routinely by the
LCP administrator and shall be conducted if requested by the:
Labor Commissioner
Complainants
Unions
Contractor(s)
Workers and
Member of the general public
When the LCP administrator receives a complaint, a labor standards investigation file shall be
opened. If after reviewing all documents and interviewing workers and other witnesses, it is
revealed that a willful violation of the Labor Code has occurred, an audit shall be conducted. The
audit should consist of:
1) A comparison of payroll records to the best available information as to the actual hours
worked;
2) The classification of workers employed on the construction contract;
3) A review of fringe benefit payments.
Examples of willful violations include some of the following:
1. Failure to Comply with Prevailing Wage Rate Requirements
Failure to comply with prevailing wage rate requirements (as set forth in Labor Code and
awarding body contracts) is determined a willful violation whenever less that the stipulated
basic hourly rate is paid to tradeworkers, or if overtime, Holiday, rate, fringe benefits and/or
employer payments are paid at a rate less than stipulated.
2. Falsification of Payroll Records, misclassification of work, and/or failure to:
Falsification of Payroll Records, misclassification of work, and/or failure to accurately report
hours of work is characterized by deliberate underreporting of hours of work, underreporting
the head count, stating that the proper prevailing wage rate was paid when it in fact was not,
misclassifying the work performed by the worker, and any other deliberate and/or willful act
which results in the falsification or inaccurate reporting of payroll records.
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SFUSD - 28 - Chapter 11