CaliforniaLabor-related liabilities: direct contractor and subcontractor.
What it does
Existing law requires, for contracts entered into on or after January 1, 2022, a direct contractor making or taking a contract in the state for the erection, construction, alteration, or repair of a building, structure, or other private work, to assume, and be liable for, any debt owed to a wage claimant or third party on the wage claimant's behalf, incurred by a subcontractor at any tier acting under, by, or for the direct contractor for the wage claimant's performance of labor included in the subject of the contract between the direct contractor and the owner. Existing law defines "direct contractor" for this purpose to mean a contractor that has a direct contractual relationship with an owner.
More detail
This bill would apply the above-described provision to contracts entered into on or after January 1, 2022, and before January 1, 2026. The bill would instead require, for contracts entered into on or after January 1, 2026, a direct contractor making or taking a contract in the state for the erection, construction, alteration, or repair of a building, structure, or other private work, to assume, and be liable for, any indebtedness for the performance of labor, as specified. The bill would prohibit a direct contractor from being held liable for the indebtedness with respect to fringe or other benefit contributions if they make contribution payments by joint check, as specified. The bill would define "direct contractor" for this purpose to mean a contractor that has a direct contractual relationship with an owner or any other person or entity engaging contractors or subcontractors, as specified, on behalf of the owner.
Existing law provides for a streamlined, ministerial approval process or use by right for certain housing developments that meet specified requirements. Existing law requires these developments to meet specified labor standards, including, among other things, making health care expenditures for each employee, as specified. Existing law grants a joint labor-management cooperation committee standing to sue a construction contractor pursuant to the above-described liability provision for failure to make those health care expenditures.
This bill would additionally grant a joint labor-management cooperation committee standing to sue pursuant to the liability provision added by this bill.
Where do you stand?
Choose your position
Tell your reps
Take a position to see your representatives and ways to contact them.
Where it stands
- Introduced
- Passed Senate
- Passed Assembly
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2025
- Oct 13Chaptered by Secretary of State. Chapter 774, Statutes of 2025.Latest
- Oct 13Approved by the Governor Gavin Newsom.Became Law
- Sep 17Enrolled and presented to the Governor at 2 p.m.To Governor
- Sep 9Assembly amendments concurred in. (Ayes 40. Noes 0. Page 2743.) Ordered to engrossing and enrolling.Major
- Vote recorded Unfinished Business SB597 Cortese Concurrence. Result: pass.Upper
- Sep 8In Senate. Concurrence in Assembly amendments pending.
- Vote recorded SB 597 Cortese Senate Third Reading By Kalra. Result: pass.Lower
- Sep 8Read third time. Passed. (Ayes 79. Noes 0. Page 3007.) Ordered to the Senate.Passed Assembly
- Sep 3Read second time. Ordered to third reading.Minor
- Sep 2Read second time and amended. Ordered to second reading.Major
- Aug 29From committee: Do pass as amended. (Ayes 11. Noes 0.) (August 29).Major
- Vote recorded Do pass as amended. Result: pass.Lower
- Aug 20August 20 set for first hearing. Placed on APPR. suspense file.
- Jul 16From committee: Do pass and re-refer to Com. on APPR. with recommendation: To consent calendar. (Ayes 12. Noes 0.) (July 15). Re-referred to Com. on APPR.Minor
- Jul 15
- Vote recorded Do pass and be re-referred to the Committee on [Appropriations] with recommendation: To Consent Calendar. Result: pass.Lower
- Jul 10From committee with author's amendments. Read second time and amended. Re-referred to Com. on JUD.Major
- Jul 10From committee: Do pass and re-refer to Com. on JUD. with recommendation: To consent calendar. (Ayes 7. Noes 0.) (July 9). Re-referred to Com. on JUD.Minor
- Jul 9
- Vote recorded Do pass and be re-referred to the Committee on [Judiciary] with recommendation: To Consent Calendar. Result: pass.Lower
- Jun 27From committee with author's amendments. Read second time and amended. Re-referred to Com. on L. & E.Major
- Jun 5Referred to Coms. on L. & E. and JUD.Minor
- May 29In Assembly. Read first time. Held at Desk.Minor
- Vote recorded Special Consent. Result: pass.Upper
- May 29Read third time. Passed. (Ayes 38. Noes 0. Page 1327.) Ordered to the Assembly.Passed Senate
- May 27Ordered to special consent calendar.
- May 23Read second time. Ordered to third reading.Minor
- Vote recorded Do pass. Result: pass.Upper
- May 23From committee: Do pass. (Ayes 6. Noes 0. Page 1206.) (May 23).Minor
- May 16Set for hearing May 23.
- May 5May 5 hearing: Placed on APPR. suspense file.
- Vote recorded Placed on suspense file. Result: pass.Upper
- Apr 25Set for hearing May 5.
- Apr 23From committee: Do pass and re-refer to Com. on APPR. with recommendation: To consent calendar. (Ayes 13. Noes 0. Page 836.) (April 22). Re-referred to Com. on APPR.Minor
- Apr 22
- Vote recorded Do pass, but first be re-referred to the Committee on [Appropriations] with the recommendation: To Consent Calendar. Result: pass.Upper
- Apr 9Set for hearing April 22.
- Vote recorded Do pass, but first be re-referred to the Committee on [Judiciary]. Result: pass.Upper
- Apr 9From committee: Do pass and re-refer to Com. on JUD. (Ayes 5. Noes 0. Page 739.) (April 9). Re-referred to Com. on JUD.Minor
- Mar 28From committee with author's amendments. Read second time and amended. Re-referred to Com. on L., P.E. & R.Major
- Mar 26Set for hearing April 9.
- Mar 5Referred to Coms. on L., P.E. & R. and JUD.Minor
- Feb 21From printer. May be acted upon on or after March 23.
- Feb 20Introduced. Read first time. To Com. on RLS. for assignment. To print.Introduced