Bill > HB05275

This bill, effective October 1, 2026, establishes that a contractor is responsible for unpaid wages owed to employees of their subcontractors, regardless of how many tiers of subcontractors are involved in a construction project. A "construction contract" is defined broadly to include agreements for building, renovating, or rehabilitating property, but excludes public works and most home improvement contracts. The bill clarifies that "contractor" refers to entities with a direct contract with the owner, while "subcontractor" includes those without a direct contract with the owner but who are part of the construction chain. Importantly, if a subcontractor fails to pay wages, the affected employee can sue either the subcontractor, the contractor, or both. Before suing a contractor, the employee must provide the contractor with at least 30 days' notice of the alleged violation by the subcontractor, unless prior notice has already been given for the same or a similar violation. The bill also amends existing law to allow employees to recover double the unpaid wages, plus costs and attorney fees, and grants the Labor Commissioner the authority to collect these unpaid wages on behalf of employees.