Under pressure to clamp down on prevailing wage violations, state regulators are looking to require more public oversight of private contractors on public works projects, including more frequent site visits.

The state Department of Industrial Relations has issued a draft regulation that would require labor compliance directors at public agencies to monitor more closely the payroll records and working conditions at public works sites. A hearing on the proposed regulation is set for Jan. 23 in Sacramento.

According to an “initial statement of reasons” issued late last year for the series of proposed amendments, the existing labor code regulation “has been expensive and inefficient in accomplishing their principal task of enforcing prevailing wage laws.” As a result, the department saw a steady stream of complaints from program administrators, labor interests and even private contractors.

The department is proposing more frequent on-site visit and interviewing requirements for labor compliance officers at public agencies. Besides checking contractor payrolls, these labor compliance officers would be looking for the posting of required notices and checking that “the work being performed matches what the contractor is reporting.”

The proposed regulation is actually being welcomed by contractors who say the state initiative should make the enforcement of labor laws by local agencies more consistent. In some cases, contractors have complained they have been fined for practices in one jurisdiction that passed muster in another.

“We applaud the broad effort here. The labor compliance programs that have been put in place by various agencies are not consistent with each other and there has been too little of a check by the state on the actions taken by labor compliance officials,” said Tom Holsman, chief executive of Associated General Contractors of California, which represents both union and non-union contractors. “Our members have suffered tremendous losses due to the uneven application of penalties and fines.”

Another provision of the proposed regulation would require more immediate notice to contractors that they have been found to be in violation of wage laws. With this notification, contractors would then be given more ability to resolve the violations quickly, possibly before significant penalties are assessed.

For more information, log onto the Department of Industrial Relations website at www.dir.ca.gov and scroll down to “Amendments to Labor Compliance Program Regulations.”

Social Security Numbers

In an effort to guard against identity theft, a new state law kicks in this month that restricts employers from using the social security numbers of employees.

Besides the obvious prohibition from posting or displaying an employee’s social security number in public, employers also are banned from printing the social security number on any card required to access products or services, such as a health care drug prescription card.

The law also prohibits employers from requiring an employee to use their social security number to access a restricted Web site, unless another identification number is also required.

Finally, employers cannot print an employee’s social security number on any materials mailed to that individual, unless state or federal law requires such a listing, as in tax form pamphlets.

Similar restrictions on the use of social security numbers also went into effect this week in several other states, including New York, Minnesota and Oregon.

Smog Check Regs

The clampdown on diesel emissions continues to broaden. This year, the headlines will be dominated by the state Air Resources Board’s attempt to regulate diesel emissions from on-road vehicles. An off-road vehicle regulation aimed primarily at construction and farm equipment passed last year.

On a related track, the state Bureau of Automotive Repairs is starting to develop smog check regulations for 800,000 lightweight diesel vehicles, which weigh 10,000 to14,000 pounds. This is part of a new state law authored by Assemblyman Tony Mendoza, D-Los Angeles, and signed by Gov. Arnold Schwarzenegger last fall. The Bureau has two years to develop the regulations.

This new smog-check program would target personal consumer diesel vehicles as well as business-related vehicles and fleets.

However, Luis Patino, a spokesman for Mendoza, said that because the smog-check program would allow vehicles not currently authorized for sale in California to be offered for sale as long as they passed the smog checks, the new law might actually make it easier for businesses to purchase and operate lightweight diesel vehicles.

High Mileage

With the new year comes an increase in the federal mileage reimbursement guidelines.

This year, for the first time, the federal mileage reimbursement guideline tops 50 cents per mile as higher gas, vehicle insurance and vehicle maintenance prices are accounted for. The new rate published by the U.S. Internal Revenue Service is 50.5 cents per mile, up from 2007’s 48.5 cents.

The increase is the result of an annual study of vehicle operation and maintenance costs conducted by Runzheimer International for the IRS.

While the standard was initially set for tax filers who claimed tax deductions for operating a vehicle for business purposes, it has also become the de-facto standard for employers who choose to reimburse their employees for vehicle miles traveled while on company-related business. It is an optional standard.

Staff reporter Howard Fine can be reached at (323) 549-5225, ext. 227 or at

[email protected]