Labor: elective compensation under the Inflation Reduction Act of 2022.

Senator Cortese's legislation creates a mechanism for employers to make voluntary retroactive wage payments to workers on renewable energy facilities, enabling qualification for enhanced federal tax incentives under the Inflation Reduction Act of 2022 without triggering state labor law violations. The bill establishes specific criteria for these payments, requiring that facilities qualify for federal tax incentives, are not public works projects, and involve installation or repair of solar panels, battery storage systems, and related components.

The measure applies only to renewable energy projects commenced after January 1, 2023, and completed by December 31, 2024. To qualify, employers must comply with federal regulations and make payments solely to obtain tax incentives, in addition to wages otherwise required by law. The bill explicitly maintains workers' rights regarding retaliation, discrimination, and employee classification claims, while preserving the Labor Commissioner's enforcement authority over other labor code provisions.

This temporary authorization expires January 1, 2029. The legislation includes an urgency clause for immediate implementation upon enactment, citing the need to ensure access to current federal clean energy tax credits. The measure requires a two-thirds vote for passage and includes fiscal committee review, though it requires no state appropriations.