California Assembly Bill AB1023

California 2021-2022 Regular Session

• Introduced: 2/18/21
• Refer: 3/4/21
• Report Pass: 4/8/21
• Refer: 4/8/21
• Refer: 5/5/21
• Report Pass: 5/20/21
• Engrossed: 6/1/21
• Refer: 6/2/21
• Refer: 6/16/21
• Report Pass: 6/29/21
• Refer: 6/29/21
• Refer: 7/15/21
• Report Pass: 8/26/21
• Enrolled: 9/9/21
• Chaptered: 9/27/21
• Passed: 9/27/21

Caption

Contractors and subcontractors: records: penalties.

Impact

The enactment of AB 1023 impacts the existing framework of how contractors manage payroll reporting on public works projects in California. It establishes a clear structure for timely submission of payroll information, which is essential for monitoring compliance with labor laws. The proposed penalties for non-compliance, set at $100 per day up to a maximum of $5,000 per project, serve as a deterrent against lapses in submitting required payroll records. Additionally, the stipulation that penalties cannot be imposed until 14 days after a missed deadline provides a grace period for contractors to comply with the new reporting standards.

Summary

Assembly Bill 1023, introduced by Assemblymember Flora, amends Section 1771.4 of the Labor Code concerning contractors and subcontractors involved in public works projects. The bill's primary objective is to update the requirements for reporting payroll records by contractors and subcontractors, shifting the previous monthly requirement to one where records must be submitted at least once every 30 days during project work and within 30 days post-project completion. Furthermore, these records must be submitted electronically via the Labor Commissioner's website, enhancing the efficiency and transparency of payroll reporting.

Sentiment

The sentiment surrounding AB 1023 appears to be generally supportive among legislators and labor advocates who view the bill as a necessary step towards enhancing labor law compliance in the public works sector. Proponents argue that updating these requirements aligns with modern practices and helps protect workers' rights by ensuring transparency in payroll practices. However, there may be concerns voiced by contractors regarding the administrative burden imposed by the electronic submission requirements and the potential financial penalties associated with non-compliance.

Contention

While the overarching aim of AB 1023 is to strengthen accountability in payroll reporting, discussions may arise regarding the practicality of the electronic record-keeping mandate, particularly for smaller contractors who may lack the necessary resources or capacity to adapt to the new system. Moreover, there is an ongoing conversation about ensuring that the penalties imposed are fair and do not disproportionately affect smaller or less-equipped contractors who may struggle with the transition to these more stringent record-keeping standards.