CSLB Law & Business ExamPublic WorksMedium
A county establishes its own Labor Compliance Program (LCP) approved by DIR to monitor a public works project. What is the primary function of this LCP during the project?
- ATo review certified payrolls and investigate possible wage violations on the project
- BTo act as the surety company guaranteeing contract performance
- CTo issue the contractor's license needed to perform the work
- DTo set the prevailing wage rates specific to that county project
Show answer & explanationAnswer & explanation
Correct answer: A. To review certified payrolls and investigate possible wage violations on the project
A Labor Compliance Program (LCP), whether run by the awarding body or DIR, monitors and enforces prevailing wage compliance by reviewing certified payroll records, conducting interviews, and investigating potential violations. It does not set wage rates, issue licenses, or act as a surety.
Why the other options are wrong
- B. Sureties are separate bonding companies, unrelated to LCP functions.
- C. Contractor licensing is handled exclusively by CSLB.
- D. Wage rates are determined by the DIR Director, not by local LCPs.
Labor Compliance Program (LCP)
An LCP approved by DIR monitors prevailing wage compliance on public works projects through certified payroll review and investigations.
- Can be run by the awarding body or DIR itself
- Focuses on enforcement, not rate-setting or licensing
- Non-compliant contractors may face withheld payments or debarment referral
Memory trick: LCP checks the paycheck.