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

Senator Cortese's proposal creates a framework for employers to make voluntary retroactive wage payments to renewable energy workers while qualifying for enhanced federal tax incentives under the Inflation Reduction Act of 2022. The measure authorizes taxpayers, employers, and contractors to provide additional compensation to workers who performed construction or repairs on qualified clean energy facilities between January 2023 and December 2024.

The bill establishes specific conditions under which these voluntary wage adjustments would not trigger violations of existing labor laws. To qualify, facilities must not be classified as public works projects or subject to Davis-Bacon Act requirements. Employers must make payments solely to access federal tax benefits and comply with U.S. Treasury and IRS guidance on renewable electricity production tax incentives. The provisions explicitly exclude claims involving worker misclassification, retaliation, discrimination, or harassment.

The Labor Commissioner retains authority to investigate payment eligibility and enforce other labor code provisions. The authorization expires January 1, 2029, limiting the program's scope to a defined period for evaluating its implementation. This temporary framework allows employers to participate in federal clean energy incentives while maintaining core worker protections under state law.