- Noah Marty
- Legislative/Communications Assistant
- Noah.Marty@asm.ca.gov
SACRAMENTO, CA — Today, Governor Gavin Newsom signed Assembly Bill (AB) 1002, which will protect California workers by enabling the Attorney General to more aggressively crack down on contractors found to be unlawfully withholding wages or committing other labor code violations. Wage theft affects some of the most vulnerable workers in California, many of whom do not have the resources or knowledge to protect themselves when an employer refuses to pay them the wages they have earned. AB 1002 will provide the California Department of Justice, in cooperation with the Contractors State License Board (CSLB), with the authority to suspend or revoke a contractor's license in cases of serious and repeated wage theft. This authority will allow for more timely and impactful enforcement of state labor laws, holding bad actors accountable and protecting the economic security and dignity of California workers.
“This new law 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 applaud Governor Newsom for signing this important bill, and I am grateful to Attorney General Bonta and the Building Trades, Carpenters, and Laborers for their partnership in helping to protect working people across California.”
“With the signing of this new law, we are putting bad actor licensed contractors on notice. For far too long, bad actors in the construction industry have engaged in a pattern of wage-theft — stealing hard-earned pay from the very people who build our communities,” said Attorney General Bonta. “This new law strengthens enforcement by allowing the DOJ to not only seek civil penalties, injunctions, and restitution for workers, but also DOJ can now seek to suspend or revoke licenses of contractors who steal wages and exploit labor. I want to thank Assembly Member Gabriel for his ongoing partnership to strengthen corporate accountability and the Building Trades, Carpenters, Laborers, and the Contractors State License Board for their partnership. Every worker deserves to be paid fully and fairly for their work, and this law will build on that commitment and hold those who violate it fully accountable.”
“Wage theft robs working families of the pay they’ve earned and undermines responsible contractors across California. By signing AB 1002, Governor Newsom is closing a dangerous loophole which will strengthen accountability, and make sure our industry is built on fairness and integrity,” said Vince Sugrue, State Legislative Director for Sheet Metal Workers' Local Union No. 104.
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) 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.