• Assembly Bill No. 1701 Affects Contractors and Subs

    Under existing law, an action may be brought for nonpayment of wages, fringe benefits, or health and welfare or pension fund contributions.

    On or after January 1, 2018, AB 1701 makes general contractors liable for the unpaid wage obligations of subcontractors. Essentially, if subs don’t pay the wages of their workers, the general is liable, regardless of the fact that the general has no contract with the worker. The bill, for all contracts entered into on or after January 1, 2018, requires a direct contractor, as defined, to assume, and be liable for, “specified debt owed to a wage claimant that is incurred by a subcontractor.”

    The bill would require a subcontractor, upon request from the direct contractor, to provide specified information regarding the subcontractor’s and third party’s work on the project and would provide that the direct contractor could withhold disputed sums upon the subcontractor’s failure to provide the requested information, as specified. The bill would provide that these obligations and remedies are in addition to any other remedy provided by law. The bill would provide that its provisions are severable.

    It’s a fairly complicated protocol and we will provide further information.

    Bottom Line: Contractors need to make sure subs pay their workers!

  • Fight the Underground Economy

    Licensed sign companies in California are competing against unlicensed sign manufacturers and installers. The California Sign Association works with the California Contractors State License Board and other regulatory agencies to eliminate the unlicensed companies. If you are aware of illegal and unlicensed installations of signs, you can help solve the problem by notifying the Statewide Investigative Fraud Team (SWIFT) of the CSLB. If you don’t want to directly participate, CSA will accept and transmit the information on your behalf.

    The best way to let CSLB know about unlicensed activity on an active job site is by completing the SWIFT Lead Referral form. Use the link below.

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    Top 10 Contracting Errors

    10 Sign Contractor Errors that Could Land You in Jail

    This is one of CSA’s most popular resource pages. The California Sign Association lawyer, Jeff Aran, receives many inquiries related to sign contracting and contractor law in California. Here are some of the most common (and surprising) errors made.

    Believe it or not, each of the following actions are potentially misdemeanors under California law, which might result in a jail sentence, monetary penalties and/or disciplinary proceedings and license suspension. Continue Reading