AB 2696: Labor-related liabilities: direct contractor and subcontractor.

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 claimants behalf, incurred by a subcontractor at any tier acting under, by, or for the direct contractor for the wage claimants performance of labor included in the subject of the contract between the direct contractor and the owner. Existing law extends, for contracts entered into on or after January 1, 2022, the direct contractors liability to penalties, liquidated damages, and interest owed by the subcontractor on account of the performance of the labor, except as provided. Existing law authorizes a joint labor-management cooperation committee, established as specified, to bring an action in any court of competent jurisdiction against a direct contractor or subcontractor at any tier to enforce liability for any unpaid wage, fringe or other benefit payment or contribution, penalties or liquidated damages, and interest owed by the subcontractor on account of the performance of the labor on a private work, as provided.

This bill would additionally authorize a joint labor-management cooperation committee, established as specified, to bring an action in any court of competent jurisdiction against a direct contractor to enforce liability for any unpaid wage, fringe or other benefit payment or contribution, penalties or liquidated damages, and interest owed by the direct contractor on account of the performance of the labor on private work.