Bill Text: CA AB2705 | 2023-2024 | Regular Session | Amended

California Assembly Bill 2705

Bill Title: Labor Commissioner.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed) 2024-06-12 - From committee: Do pass and re-refer to Com. on JUD. (Ayes 5. Noes 0.) (June 12). Re-referred to Com. on JUD. [AB2705 Detail]

Download: California-2023-AB2705-Amended.html

Amended IN Assembly March 21, 2024

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill

No. 2705

Introduced by Assembly Member Ortega

February 14, 2024

An act to amend Section ~~6200~~ 1743 of the Labor Code, relating to public ~~employees.~~ works.

LEGISLATIVE COUNSEL'S DIGEST

AB 2705, as amended, Ortega. ~~Public employees: retraining and rehabilitation.~~ Labor Commissioner.

Existing law imposes various requirements on work performed on a public works project, as defined, including requirements for minimum wages to be paid. Existing law requires the Labor Commissioner, after determining there has been a violation of these requirements, to issue a civil wage and penalty assessment to the contractor or subcontractor, or both. Existing law requires the assessment to be in writing and served not later than 18 months after the filing of a valid notice of completion in the office of the county recorder in each county in which the public work or some part thereof was performed, or not later than 18 months after acceptance of the public work, whichever occurs last. Existing law provides for this time period to be tolled under specified conditions. Existing law generally limits claimants from commencing an action to enforce the liability on a payment bond at any time after the claimant ceases to provide work, but not later than 6 months after the period in which a stop payment notice may be given.
This bill would provide a limitations period for any action on a payment bond filed by the Labor Commissioner to be governed by the same timing requirements for the Labor Commissioner to serve a civil wage and penalty assessment.
Existing law requires every public agency, its insurance carrier, and the Department of Rehabilitation to jointly formulate procedures for the selection and referral of injured full-time public employees who may be benefited by rehabilitation services and retrained for other positions in public service.
~~This bill would make nonsubstantive changes to those provisions.~~

Vote: MAJORITY Appropriation: NO Fiscal Committee: NOYES Local Program: NO

The people of the State of California do enact as follows:

SECTION 1.

Section 1743 of the Labor Code is amended to read:

1743.

(a) The contractor and subcontractor shall be jointly and severally liable for all amounts due pursuant to a final order under this chapter or a judgment thereon. The Labor Commissioner shall first exhaust all reasonable remedies to collect the amount due from the subcontractor before pursuing the claim against the contractor.

(b) From the amount collected, the wage claim shall be satisfied prior to the amount being applied to penalties. If insufficient money is recovered to pay each worker in full, the money shall be prorated among all workers.

(c) Wages for workers who cannot be located shall be placed in the Industrial Relations Unpaid Wage Fund and held in trust for the workers pursuant to Section 96.7. Penalties shall be paid into the General Fund.

(d) Notwithstanding Section 9558 of the Civil Code, the limitations period of any action on a payment bond filed by the Labor Commissioner shall be governed by the limitations period in Section 1741 and the tolling provisions of Section 1741.1. A final order under this chapter or a judgment thereon shall be binding, with respect to the amount found to be due, on a bonding company issuing a bond that secures the payment of wages and a surety on a bond. The limitations period of any action on a payment bond shall be tolled pending a final order that is no longer subject to judicial review.

SECTION 1.Section 6200 of the Labor Code is amended to read:
6200.
Every public agency, its insurance carrier, and the Department of Rehabilitation shall jointly formulate procedures for the selection and orderly referral of injured full-time public employees who may be benefited by rehabilitation services and retrained for other positions in public service. The Department of Rehabilitation shall cooperate in both designing and monitoring results of rehabilitation programs for the disabled employees. The primary purpose of this division is to encourage public agencies to reemploy their injured employees in suitable and gainful employment.