Bill > SB597

This bill amends California labor and government codes to expand and clarify the liability of direct contractors for wage-related indebtedness from subcontractors in private construction projects. Specifically, for contracts entered into between January 1, 2022, and January 1, 2026, the bill maintains existing law that requires direct contractors to be liable for wage-related debts incurred by subcontractors. However, for contracts entered into on or after January 1, 2026, the bill broadens the definition of "direct contractor" and expands the types of indebtedness for which they can be held responsible. The bill introduces new provisions that allow direct contractors to avoid liability for certain fringe benefit contributions if they make payments via joint check, and provides detailed procedures for how contractors can monitor and address potential wage payment issues with subcontractors. The legislation also clarifies enforcement mechanisms, including the ability of labor-management cooperation committees to bring civil actions, and sets specific timelines and notification requirements for addressing wage-related disputes. The bill aims to provide more comprehensive protections for workers and establish clearer accountability in the construction industry's subcontracting practices.

Budget and Finance, Justice, Labor and Employment

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260SB597