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AB-1701 Labor-related liabilities: original contractor.(2017-2018)

Current Version: 10/14/17 - Chaptered        


Assembly Bill No. 1701

An act to add Section 218.7 to the Labor Code, relating to employment.

[ Approved by Governor  October 14, 2017. Filed with Secretary of State  October 14, 2017. ]


AB 1701, Thurmond. Labor-related liabilities: original contractor.
Under existing law, an action may be brought for nonpayment of wages, fringe benefits, or health and welfare or pension fund contributions.
This bill would, for all contracts entered into on or after January 1, 2018, require a direct contractor, as defined, making or taking a contract in the state for the erection, construction, alteration, or repair of a building, structure, or other work, to assume, and be liable for, specified debt owed to a wage claimant that is 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 original contract. The bill would authorize the Labor Commissioner to bring an action under specified statutes or in a civil action to enforce this liability, as provided. The bill would also authorize a third party owed fringe or other benefits or a joint labor-management cooperation committee, as defined, to bring a civil action to enforce the liability against a direct contractor under these provisions, as specified. The bill would provide that it does not apply to any work being done by an employee of the state or any political subdivision of the state. The bill would require a subcontractor, upon request from the direct contractor, to provide specified information regarding the subcontractor’s and third party’s work on the project and would provide that the direct contractor could withhold disputed sums upon the subcontractor’s failure to provide the requested information, as specified. The bill would provide that these obligations and remedies are in addition to any other remedy provided by law. The bill would provide that its provisions are severable.