SB 727

  • California Senate Bill
  • 2021-2022 Regular Session
  • Introduced in Senate Feb 19, 2021
  • Passed Senate Jun 01, 2021
  • Passed Assembly Sep 09, 2021
  • Became Law Sep 27, 2021

Labor-related liabilities: direct contractor.

Abstract

Existing law requires, for contracts entered into on or after January 1, 2018, 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 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 original contract. Existing law limits the direct contractor's liability under those provisions to extend only to any unpaid wage, fringe or other benefit payment or contribution, including interest owed and provides that liability does not extend to penalties or liquidated damages. This bill would extend, for contracts entered into on or after January 1, 2022, the direct contractor's 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 the Labor Commissioner to enforce against a direct contractor the liability for unpaid wages pursuant to specified provisions, or through a civil action, and limits the direct contractor's liability to unpaid wages, including any interest owed. This bill would require the Labor Commissioner to notify, as specified, the direct contractor and subcontractor at any tier on a private works project at least 30 days prior to taking certain actions for the failure of a subcontractor on that private works project to pay the specified wage, fringe, or other benefit due to workers. The bill would remove, for contracts entered into on or after January 1, 2022, the limitation of liability. Existing law requires, prior to commencement of an action against a direct contractor, a joint labor-management cooperation committee to provide the direct contractor and subcontractor that employed the wage claimant with at least 30 days' notice, as provided. This bill would, for contracts entered into on or after January 1, 2022, require the notice to include the project name and name of the employer and provide that any liquidated damages awarded by the Labor Commissioner or the court shall be payable to the aggrieved employee. The bill would make conforming changes.

Bill Sponsors (2)

Votes


Actions


Sep 27, 2021

California State Legislature

Chaptered by Secretary of State. Chapter 338, Statutes of 2021.

California State Legislature

Approved by the Governor.

Sep 17, 2021

California State Legislature

Enrolled and presented to the Governor at 1:30 p.m.

Sep 10, 2021

Senate

Assembly amendments concurred in. (Ayes 27. Noes 9. Page 2604.) Ordered to engrossing and enrolling.

Sep 09, 2021

Assembly

Read third time. Passed. (Ayes 60. Noes 18. Page 2964.) Ordered to the Senate.

Senate

In Senate. Concurrence in Assembly amendments pending.

Sep 02, 2021

Assembly

Read third time and amended.

Assembly

Ordered to third reading.

Aug 30, 2021

Assembly

Read second time. Ordered to third reading.

Aug 26, 2021

Assembly

From committee: Do pass. (Ayes 12. Noes 4.) (August 26).

Assembly

Coauthors revised.

Aug 19, 2021

Assembly

August 19 set for first hearing. Placed on suspense file.

Jul 07, 2021

Assembly

From committee: Do pass and re-refer to Com. on APPR. (Ayes 8. Noes 2.) (July 6). Re-referred to Com. on APPR.

  • Committee-Passage
  • Committee-Passage-Favorable
  • Referral-Committee
Com. on APPR.

Jun 23, 2021

Assembly

From committee: Do pass and re-refer to Com. on JUD. (Ayes 5. Noes 2.) (June 22). Re-referred to Com. on JUD.

  • Committee-Passage
  • Committee-Passage-Favorable
  • Referral-Committee
Com. on JUD.

Jun 10, 2021

Assembly

Referred to Coms. on L. & E. and JUD.

  • Referral-Committee
Coms. on L. & E. and JUD.

Jun 02, 2021

Assembly

In Assembly. Read first time. Held at Desk.

Jun 01, 2021

Senate

Read third time. Passed. (Ayes 29. Noes 9. Page 1317.) Ordered to the Assembly.

May 20, 2021

Senate

Read second time. Ordered to third reading.

Senate

From committee: Do pass. (Ayes 5. Noes 2. Page 1202.) (May 20).

May 14, 2021

Senate

Set for hearing May 20.

May 10, 2021

Senate

May 10 hearing: Placed on APPR suspense file.

May 04, 2021

Senate

Set for hearing May 10.

Apr 29, 2021

Senate

Read second time and amended. Re-referred to Com. on APPR.

  • Amendment-Passage
  • Reading-1
  • Reading-2
  • Referral-Committee
Com. on APPR.

Apr 28, 2021

Senate

From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 9. Noes 1. Page 937.) (April 27).

Apr 21, 2021

Senate

Set for hearing April 27.

Senate

Read second time and amended. Re-referred to Com. on JUD.

  • Amendment-Passage
  • Reading-1
  • Reading-2
  • Referral-Committee
Com. on JUD.

Apr 20, 2021

Senate

From committee: Do pass as amended and re-refer to Com. on JUD. (Ayes 4. Noes 1. Page 844.) (April 19).

Apr 06, 2021

Senate

Set for hearing April 19.

Mar 25, 2021

Senate

April 5 set for first hearing canceled at the request of author.

Mar 23, 2021

Senate

Set for hearing April 5.

Mar 18, 2021

Senate

Re-referred to Coms. on L., P.E. & R. and JUD.

  • Referral-Committee
Coms. on L., P.E. & R. and JUD.

Mar 09, 2021

Senate

From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS.

  • Amendment-Passage
  • Committee-Passage
  • Reading-1
  • Reading-2
  • Referral-Committee
Com. on RLS.

Mar 03, 2021

Senate

Referred to Com. on RLS.

  • Referral-Committee
Com. on RLS.

Feb 22, 2021

Senate

From printer. May be acted upon on or after March 24.

Senate

Joint Rule 55 suspended. (Ayes 32. Noes 4. Page 272.)

Senate

(Ayes 32. Noes 4.)

Senate

Art. IV. Sec. 8(a) of the Constitution dispensed with.

Senate

Read first time.

Feb 19, 2021

Senate

Introduced. To Com. on RLS. for assignment. To print.

Bill Text

Bill Text Versions Format
SB727 HTML
02/19/21 - Introduced PDF
03/09/21 - Amended Senate PDF
04/21/21 - Amended Senate PDF
04/29/21 - Amended Senate PDF
09/02/21 - Amended Assembly PDF
09/14/21 - Enrolled PDF
09/27/21 - Chaptered PDF

Related Documents

Document Format
04/16/21- Senate Committee on Labor, Public Employment and Retirement PDF
04/23/21- Senate Judiciary PDF
05/07/21- Senate Appropriations PDF
05/22/21- Sen. Floor Analyses PDF
06/23/21- Assembly Labor and Employment PDF
07/02/21- Assembly Judiciary PDF
08/16/21- Assembly Appropriations PDF
08/31/21- ASSEMBLY FLOOR ANALYSIS PDF
09/02/21- ASSEMBLY FLOOR ANALYSIS PDF
09/09/21- Sen. Floor Analyses PDF

Sources

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