1.) AB 1701 applies to all private works contracts in the state of California that went into effect beginning 1/1/2018
2.) This bill requires developers and general contractors to be responsible for subcontractors who fail to pay their employees
3.) The direct contractor’s liability shall extend only to any unpaid wage, fringe or other benefit payment or contribution
4.) Third parties who are owed fringe or other benefit payments or contributions on a wage claimant’s behalf may bring a civil action against the direct contractor for such unpaid benefits or contributions including interest
5.) Upon direct contractor’s request, subcontractors and lower tier subcontractors must provide payroll records and project award information.
6.) Direct contractor may withhold as “disputed” all sums owed if a subcontractor does not provide the timely requested records and information until this documentation is submitted.
Electronic labor compliance & workforce reporting solutions such as LCPtracker provide easy-to-use compliance management in the cloud that can help your organization stay in compliance with AB 1701 and other labor laws.
For more information, visit www.lcptracker.com
For more information on AB 1701, Click Here.