A new California law gives the state stronger tools to hold contractors accountable for wage theft and labor violations.
Assembly Bill 1002, authored by Assemblymember Jesse Gabriel (D-Encino) and signed by Governor Gavin Newsom, authorizes the California Department of Justice (DOJ) to work directly with the Contractors State License Board (CSLB) to suspend or revoke contractors’ licenses for wage theft and related offenses.
Previously, the DOJ could only pursue restitution, penalties, or injunctions for wage and hour violations — but could not take direct action against a contractor’s license without the CSLB joining as a co-plaintiff. Under AB 1002, the DOJ can now independently seek CSLB disciplinary action against contractors who commit serious or repeated labor violations.
“This new law strengthens enforcement by allowing my office to not only seek civil penalties and restitution for workers, but also to suspend or revoke licenses of contractors who steal wages,” said Attorney General Rob Bonta.
Assemblymember Gabriel emphasized that the law sends a clear message: wage theft will not be tolerated in California. “Workers deserve dignity and economic security, and that starts with receiving the wages they have rightfully earned,” he said.
Supporters, including trade unions, say the law closes a loophole that allowed repeat offenders to continue operating despite prior settlements or penalties. The measure follows a 2023 lawsuit against West Coast Drywall & Company, a subcontractor accused of repeated wage violations.
By empowering the DOJ and CSLB to take coordinated action, AB 1002 reinforces California’s commitment to protecting workers and promoting fairness in the construction industry.
Source: California Construction News
