Assembly Bill 1701 (Thurmond) is a proposal to amend the California Labor Code to require general contractors on private projects to assume and be liable for the unpaid employee fringe benefit contributions incurred by subcontractors at any tier. A.B. 1701 creates a private right of action for claimants such as Taft-Hartley Multiemployer plans and Joint Labor-Management Cooperation Committees as against a general contractor, even if there is no direct contract between the claimant and the general. The bill would also allow the Labor Commissioner to bring an action to enforce the liability.
Status: the bill was presented to Governor Brown on September 20, 2017. If signed, the bill would take effect on January 1, 2018.
For more information on how this bill might affect your multi-employer plan, please contact a WKCHR attorney.
Read the text of the bill here.