HB 5439 Summary

• Contractors entering construction contracts on or after October 1, 2022, assume joint and several liability for unpaid wages owed by subcontractors at any tier to employees or labor organizations.

• Agreements to waive or release contractor liability under this section are invalid, but contractors may pursue recovery actions against subcontractors for wages they pay on their behalf.

• Employees may designate representatives, including labor organizations or collective bargaining agents, to file civil actions or complaints with the Labor Commissioner on their behalf.

• Contractors and subcontractors may request certified payroll records and worker information from subcontractors within 30 days via certified mail, and may withhold payments for non-compliance.

• Liability under this section applies to claims occurring within three years prior to when a claim is initiated in court or by the Labor Commissioner.