California 2025-2026 Regular Session

California Assembly Bill AB538

Introduced
2/11/25  
Refer
2/24/25  
Report Pass
3/19/25  
Refer
3/19/25  
Refer
4/23/25  
Report Pass
5/23/25  
Engrossed
6/3/25  
Refer
6/4/25  
Refer
6/18/25  
Report Pass
6/25/25  
Refer
6/25/25  
Refer
7/7/25  
Report Pass
8/29/25  
Enrolled
9/10/25  
Chaptered
10/11/25  

Caption

An act to amend Section 1776 of the Labor Code, relating to public works.

Impact

If enacted, AB 538 enhances the regulatory framework surrounding public works payroll records, thus strengthening compliance mechanisms. The measure allows the Division of Labor Standards Enforcement to enforce penalties against non-compliant contractors, with the objective of ensuring adherence to labor laws regarding prevailing wages. In particular, the bill stipulates that contractors have a 10-day window to comply with requests for payroll records, or face daily penalties for each worker until compliance is met. This move aims to improve transparency and accountability in public works projects.

Summary

Assembly Bill 538, introduced by Berman, modifies Section 1776 of the California Labor Code, which pertains to public works and contractor obligations regarding payroll record maintenance. The bill requires contractors and subcontractors engaged in public works to maintain precise payroll records, which must include various employee details. Notably, it mandates that these records be made available for public inspection upon request and sets procedural guidelines for how such requests are to be handled. If a governing body is not in possession of such records when requested, it is obliged to obtain them from the contractor and provide them to the requester.

Sentiment

The sentiment surrounding AB 538 appears generally positive among proponents who see it as a necessary step for ensuring fairness in labor practices on public works projects. Supporters argue that the bill will help protect workers by enforcing existing wage laws more rigorously. However, there may also be concerns from contractors who feel that increased regulatory obligations and penalties could add burdensome administrative tasks to their operations. Overall, the bill's introduction has sparked discussions surrounding labor rights and contractor accountability in California.

Contention

Despite its support, AB 538 has faced some contention, particularly regarding its implications for contractors who may struggle to comply with additional requirements. The potential introduction of penalties for violations raises the question of whether the balance between monitoring compliance and placing excessive burdens on contractors is appropriate. Additionally, the requirement for public access to payroll records could be seen as conflicting with privacy concerns, prompting debate on how to best protect both worker rights and contractor interests. The interaction between state oversight and local contractor operations remains a critical point of discussion.

Companion Bills

No companion bills found.

Previously Filed As

CA SB909

An act to amend Sections 1725.5, 1741, 1775, 1776, 1777.7, and 1813 of the Labor Code, relating to public works.

CA AB381

An act to amend Section 6108 of the Public Contract Code, relating to public contracts.

CA HB5108

Health occupations: pharmacists; pharmacist scope of practice; modify. Amends secs. 5111, 17703, 17707, 17708, 17724a, 17744, 17744a, 17751, 17757 & 17763 of 1978 PA 368 (MCL 333.5111 et seq.) & adds sec. 17744h.

CA HB569

An Act to amend and reenact §§ 2.2-4321.3, 23.1-1009, and 40.1-6 of the Code of Virginia, relating to prevailing wage rate for public works contracts; definitions; civil penalty; work group; report.

CA SB272

An Act To Amend Title 14 And Title 29 Of The Delaware Code Relating To Project Labor Agreements For School District Public Works Contracts.

CA AB963

Public works: prevailing wages: access to records.

CA HB1046

An Act to amend and reenact §§ 2.2-4343 and 23.1-1003 of the Code of Virginia and to amend the Code of Virginia by adding in Article 1 of Chapter 43 of Title 2.2 a section numbered 2.2-4302.3, relating to Virginia Public Procurement Act; additional public works contract requirements; report.

CA HB0556

Public Contracts Labor Amendments

CA AB1859

Public works.

CA AB1198

Public works: prevailing wages.

Similar Bills

CA AB1885

Public contracts: retention proceeds.

TN HB1270

AN ACT to amend Tennessee Code Annotated, Title 4; Title 8; Title 9, Chapter 8; Title 29, Chapter 20 and Title 49, relative to freedom of speech.

TN SB0937

AN ACT to amend Tennessee Code Annotated, Title 4; Title 8; Title 9, Chapter 8; Title 29, Chapter 20 and Title 49, relative to freedom of speech.

CA AB332

Employment: agricultural workers.

CA SB1174

Public contracts: Department of Transportation: bid preferences: employee stock ownership plans.

CA AB2272

State contracting: subcontractors: prompt payment.

MI HB4384

State management: purchasing; awarding contracts to entities that donate or contribute to certain political candidates or committees; prohibit. Amends 1984 PA 431 (MCL 18.1101 - 18.1594) by adding sec. 264b.

AR HB1468

To Amend Arkansas Law Concerning Claims Against Home Improvement Contractors, Residential Building Contractors, And Suppliers.