Bill > SB597

This bill modifies labor-related liability provisions for direct contractors and subcontractors in construction projects, with key changes taking effect at different times. For contracts entered into between January 1, 2022, and January 1, 2026, direct contractors will continue to be liable for unpaid wages, benefits, and related penalties incurred by subcontractors. However, for contracts entered into on or after January 1, 2026, the bill expands the definition of "direct contractor" to include those with contractual relationships with the owner or any entity engaging contractors on the owner's behalf. The bill also introduces a new provision allowing direct contractors to avoid liability for fringe benefit contributions by making joint check payments to subcontractors and benefit trusts under specific conditions. Additionally, the bill grants joint labor-management cooperation committees standing to sue construction contractors for failure to make health care expenditures and clarifies enforcement mechanisms for wage and benefit payments. The legislation aims to provide clearer guidelines and protections for workers in construction projects while establishing more precise responsibilities for contractors and subcontractors.

Budget and Finance, Justice, Labor and Employment

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