- Noah Marty
- Legislative/Communications Assistant
- Noah.Marty@asm.ca.gov
SACRAMENTO, CA — Yesterday, the California State Legislature passed Assembly Bill (AB) 1002, which would permit the Attorney General to bring actions against a contractor found to be illegally withholding wages or committing other labor code violations. Wage theft affects some of the most vulnerable workers in our economy, many of whom may not have the resources or knowledge to protect themselves when an employer refuses to pay wages owed.
“This bill sends a clear message that wage theft will not be tolerated in California. Workers deserve dignity and economic security and this starts with receiving the wages they have rightfully earned,” said Assemblymember Jesse Gabriel (D-Encino). “I want to thank Attorney General Rob Bonta and the Building Trades, Carpenters, Laborers and the Contractors State License Board for their partnership in protecting working families across California.”
While wage theft and labor violations are already illegal, adding this authority would offer a more immediate and impactful remedy in coordination with California’s licensing board for contractors.
“Today’s passage of AB 1002, with strong bipartisan support, is a win for workers’ rights and licensed contractors,” said Attorney General Rob Bonta. “I’m proud to sponsor this critical legislation that will empower the California Department of Justice to ensure that unscrupulous contractors are held accountable for engaging in unlawful wage violations against their workers. I want to thank Assemblymember Gabriel, the Building Trades, Carpenters, Laborers, and the Contractors State License Board for their partnership, for standing up for our workforce, and for supporting enforcement efforts that will safeguard the integrity of our licensing system and promote a fair and lawful workplace for all construction workers.”
Background on AB 1002
Last year, California Attorney General Rob Bonta announced a lawsuit against a Southern California-based construction subcontractor alleging ongoing wage and hour violations. The lawsuit alleges that since at least August 2019, West Coast Drywall & Company, Inc. (operating as West Coast Drywall & Paint) has failed to pay employees wages owed and overtime wages, provide accurate and complete itemized wage statements, reimburse for tools and equipment, and supply mandated breaks for its field employees.
The West Coast Drywall Company has settled cases with the federal Department of Labor for wage theft and other labor code violations three times prior, and appears to be continuing to break the law. While the Contractors State Licensing Board (CSLB) has authority to revoke a contractor’s license for labor code violations, their investigations primarily focus on other occupational concerns. In contrast, the Department of Justice has the technical expertise and capacity to investigate labor code violations and seek accountability, in coordination with CSLB.
The U.S. Department of Labor Data Enforcement database shows that numerous companies in California have been the subject of multiple investigations that found violations of the labor code.
Many of these cases have been resolved through financial settlements, allowing companies like West Coast Drywall to pay their fines and simply move on. This system can enable well-financed contractors to remain licensed and thrive, while vulnerable workers continue to suffer from blatant wage theft.
Next Steps
Governor Newsom will have until October 12 to decide whether to veto the bill or sign it into law.