California Construction News staff writer
A new California law will give the state attorney general authority to seek suspension or revocation of contractors’ licenses for wage theft and related labor violations.
Assembly Bill 1002, authored by Assemblymember Jesse Gabriel (D-Encino) and signed by Gov. Gavin Newsom, authorizes the California Department of Justice (DOJ) to work directly with the Contractors State License Board (CSLB) to hold licensed contractors accountable for failing to pay workers properly.
“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 Rob Bonta. “This new law strengthens enforcement by allowing my office to not only seek civil penalties, injunctions, and restitution for workers, but also to suspend or revoke licenses of contractors who steal wages and exploit labor.”
Under existing law, the DOJ could pursue restitution, penalties, and injunctions against companies that violated wage and hour laws but could not take direct action against a contractor’s license. In those cases, the CSLB had to join as a co-plaintiff to pursue disciplinary action.
AB 1002 now allows the DOJ to independently seek CSLB license suspension or revocation for contractors found to have committed serious or repeated labor code violations. The DOJ must notify the CSLB of relevant complaints and provide the board an opportunity to intervene.
“This new law sends a clear message that wage theft will not be tolerated in California,” said Gabriel. “Workers deserve dignity and economic security, and that starts with receiving the wages they have rightfully earned.”
Vince Sugrue, state legislative director for Sheet Metal Workers’ Local Union No. 104, said the law “closes a dangerous loophole” and ensures the construction industry “is built on fairness and integrity.”
The legislation follows a 2023 lawsuit filed by Bonta’s office against West Coast Drywall & Company, a Southern California subcontractor accused of ongoing wage and hour violations despite multiple prior settlements with the U.S. Department of Labor. The case highlighted limits in the state’s ability to discipline contractors engaged in repeat offenses.
Supporters say AB 1002 will strengthen worker protections and ensure that contractors who exploit employees face both financial and licensing consequences.
