Labor-related liabilities: direct contractor and subcontractor.
- Expands direct contractor liability for subcontractor wage debts on private construction projects through 2026.
- Requires contractors on large housing projects to provide healthcare benefits equivalent to Platinum-level plans.
- Mandates monthly compliance reports and payroll documentation to ensure proper wage and benefit payments.
- Establishes penalties up to $10,000 for contractors who fail to submit required reports or violate labor standards.
Senator Cortese's labor standards legislation extends direct contractor liability for worker compensation while creating new mechanisms to ensure healthcare coverage and prevailing wages in California's construction industry. The bill modifies existing law by requiring contractors to assume responsibility for subcontractor wage obligations through 2026, after which broader liability provisions take effect.
For contracts initiated before 2026, direct contractors must monitor subcontractor wage payments and take corrective action if violations occur. The legislation mandates that contractors review payroll records, retain funds when necessary, and obtain signed affidavits confirming proper compensation before issuing final payments. Joint labor-management committees gain standing to pursue claims for unpaid wages and benefits.
Starting in 2026, the bill expands contractor obligations to include all labor-related indebtedness while establishing a new system for healthcare contributions. Contractors can limit liability for fringe benefits by implementing joint payment procedures with trust funds and benefit programs. The measure preserves existing wage claim enforcement through the Labor Commissioner while adding provisions for civil actions by workers and labor organizations.
The legislation also strengthens labor standards for housing developments, particularly those seeking streamlined approval. Projects with 50 or more units must participate in approved apprenticeship programs and provide healthcare expenditures equivalent to platinum-level coverage. Monthly compliance reporting requirements and specific penalties for violations aim to ensure consistent enforcement of these new standards.
 Ash KalraD Assemblymember | Committee Member |  Not Contacted | |
 Phillip ChenR Assemblymember | Committee Member | Not Contacted | |
 Heath FloraR Assemblymember | Committee Member | Not Contacted | |
 Alex LeeD Assemblymember | Committee Member | Not Contacted | |
 Chris WardD Assemblymember | Committee Member | Not Contacted |
Email the authors or create an email template to send to all relevant legislators.
Introduced By
Latest Voting History
| Ayes | Noes | NVR | Total | Result |
|---|---|---|---|---|
| 7 | 0 | 0 | 7 | PASS |
- Expands direct contractor liability for subcontractor wage debts on private construction projects through 2026.
- Requires contractors on large housing projects to provide healthcare benefits equivalent to Platinum-level plans.
- Mandates monthly compliance reports and payroll documentation to ensure proper wage and benefit payments.
- Establishes penalties up to $10,000 for contractors who fail to submit required reports or violate labor standards.
Email the authors or create an email template to send to all relevant legislators.
Introduced By
Senator Cortese's labor standards legislation extends direct contractor liability for worker compensation while creating new mechanisms to ensure healthcare coverage and prevailing wages in California's construction industry. The bill modifies existing law by requiring contractors to assume responsibility for subcontractor wage obligations through 2026, after which broader liability provisions take effect.
For contracts initiated before 2026, direct contractors must monitor subcontractor wage payments and take corrective action if violations occur. The legislation mandates that contractors review payroll records, retain funds when necessary, and obtain signed affidavits confirming proper compensation before issuing final payments. Joint labor-management committees gain standing to pursue claims for unpaid wages and benefits.
Starting in 2026, the bill expands contractor obligations to include all labor-related indebtedness while establishing a new system for healthcare contributions. Contractors can limit liability for fringe benefits by implementing joint payment procedures with trust funds and benefit programs. The measure preserves existing wage claim enforcement through the Labor Commissioner while adding provisions for civil actions by workers and labor organizations.
The legislation also strengthens labor standards for housing developments, particularly those seeking streamlined approval. Projects with 50 or more units must participate in approved apprenticeship programs and provide healthcare expenditures equivalent to platinum-level coverage. Monthly compliance reporting requirements and specific penalties for violations aim to ensure consistent enforcement of these new standards.
Latest Voting History
| Ayes | Noes | NVR | Total | Result |
|---|---|---|---|---|
| 7 | 0 | 0 | 7 | PASS |
Ash KalraD Assemblymember | Committee Member | Not Contacted | |
Phillip ChenR Assemblymember | Committee Member | Not Contacted | |
Heath FloraR Assemblymember | Committee Member | Not Contacted | |
Alex LeeD Assemblymember | Committee Member | Not Contacted | |
Chris WardD Assemblymember | Committee Member | Not Contacted |