(a) If an audit subject fails to meet the full compliance audit performance standards in two consecutive full compliance audits, the Audit Unit shall file a Complaint naming the audit subject and requesting the Administrative Director to issue an Order to Show Cause for the possible assessment of a civil penalty pursuant to Labor Code Section 129.5(e). Nothing in these regulations shall prohibit the Audit Unit from referring any audit subject to the Administrative Director for the possible assessment of a civil penalty under Labor Code Section 129.5(e) for any other reason. If the Administrative Director has reason to believe that an employer, insurer, or third-party administrator has knowingly committed or performed any of the practices set forth in Labor Code Section 129.5(e), (s)he shall issue an Order to Show Cause Re: Assessment of Civil Penalty and Notice of Hearing.
(b) The order shall be in writing and shall contain all of the following:
(1) Notice that a civil penalty not to exceed $100,000 per audit subject named in the order may be assessed;
(2) The basis for the assessment, including a statement of the alleged violations;
(3) Notice of the date, time and place of hearing. Continuances will not be allowed without a showing of good cause.
(c) The order shall be served personally or by registered or certified mail.
Note: Authority cited: Sections 59, 129, 129.5, 133 and 5307.3, Labor Code
Reference: Sections 7, 124, 129 and 129.5, Labor Code