AB 1002 California Assembly · 2025-2026 Regular Session

Contractors: failure to pay wages: discipline.

Summary

Existing law, the Contractors State License Law, establishes the Contractors State License Board to license and regulate contractors and establishes the registrar of contractors as the executive officer and secretary of the board. Existing law requires the registrar, upon receipt of the Labor Commissioner's finding of a willful or deliberate violation of the Labor Code by a licensee or transmission to the board of citations or other actions taken by the Division of Occupational Safety and Health, to initiate disciplinary action against the licensee within 18 months. This bill would authorize the Attorney General to bring a civil action to impose discipline upon, to deny an application for, or to deny continued maintenance of, a contractor's license for failing to pay its workers the full amount of wages the workers are entitled to under state law or because the contractor has not fulfilled a wage judgment or is in violation of an injunction or court order regarding the payment of wages to its workers. The bill would require the Attorney General to notify the registrar before bringing a civil action and would authorize the board to intervene in a proceeding brought pursuant to the bill's provisions. The bill would require a court to issue an order directing the registrar to suspend or revoke, to deny an application for, or to deny the continued maintenance of, a contractor's license under terms specified by the court.

Issues: ✓ Labor & Employment

Bill status signed all 5 stages cleared

Introduction

Feb 2025

Committee Review

Aug 2025

Assembly Passage

Jun 2025

Senate Passage

Sep 2025

Signed into Law

Oct 2025

Introduced Feb 20, 2025 Signed Oct 10, 2025

Maddy AI version diff · 5 comparisons

What changed between versions

03/28/25 - Amended Assembly → 06/26/25 - Amended Senate · 8 edits · Jun 26, 2025

MODERATE

The Senate amendment significantly expanded AB 1002 by adding a new, broader provision (Section 7036) alongside the original one (retained as Section 7110.6). The new section widens the types of license actions available (adding denial of applications and continued maintenance), inserts a good-faith wage-rate mistake exemption, adds procedural cross-references to existing disciplinary statutes, and removes a legislative intent statement about future follow-up legislation.

Scope change

The bill's scope expanded from authorizing only suspension or revocation of existing contractor licenses (and barring individuals from licensure) to also covering denial of initial license applications and denial of continued maintenance of licenses. A new good-faith wage-rate mistake exemption narrows the practical reach for certain violations.

SCOPE

A new Section 7036 was added that authorizes the Attorney General to bring civil actions to impose discipline upon, deny an application for, or deny continued maintenance of a contractor's license - broader than the original which only covered temporary suspension or permanent revocation of existing licenses.

The legislative intent statement directing future legislation to strengthen remedies against contractors who repeatedly commit labor violations was removed entirely.

ELIGIBILITY

A new good-faith exemption (subdivision f) provides that a good faith mistake regarding which wage rate applies to a particular category of work, including for prevailing wage purposes, shall not constitute a violation under the new section.

REQUIREMENT

The court's relief mechanism was changed: instead of directly ordering suspension or bar, the court now directs the registrar to exercise its own authority to suspend, revoke, deny application, or deny continued maintenance. The court may also consider the severity and form of relief already imposed by the registrar in its disciplinary actions.

TECHNICAL

New cross-references establish that orders under the new section are considered 'disciplinary action' under Section 7071.8 and 'legal action' under Section 7124.6, and that the registrar determines reinstatement timing under Section 7102 (or Section 486(a) for denied licenses).

New language clarifies the board is not required to afford notice or a hearing under Government Code Chapter 5 (administrative procedure), and adds a reference to Section 7090 alongside Section 7011.7.

The bill now adds two separate code sections (7036 and 7110.6) rather than one, with the original provision preserved as Section 7110.6 and the new broader provision placed at Section 7036.

FISCAL

The fiscal committee designation changed from 'no' to 'yes,' indicating a state fiscal impact was identified in the Senate amendment.

02/20/25 - Introduced → 03/28/25 - Amended Assembly · 8 edits · Mar 28, 2025

MODERATE

AB 1002 was substantially expanded from a bill that only expressed legislative intent to strengthen remedies against contractors who commit labor violations, into a bill that creates an actual enforcement mechanism. The amendment adds new Section 7110.6 to the Business and Professions Code, authorizing the Attorney General to bring civil actions in court to suspend or revoke contractor licenses and to bar or deny licensure for failing to pay workers wages, not fulfilling wage judgments, or violating court orders on wage payment. This transforms the bill from aspirational language into a concrete legal tool with specific procedural requirements.

ENFORCEMENT

New Section 7110.6(a) authorizes the Attorney General to bring a civil action for temporary suspension or permanent revocation of a contractor's license when the contractor has failed to pay workers full wages, has not fulfilled a wage judgment, or is in violation of an injunction or court order regarding wage payment.

New Section 7110.6(b) authorizes the Attorney General to bring a civil action to bar licensure or deny relicensure of any contractor, officer, director, associate, partner, manager, responsible manager, or other qualifying individual for the same wage-related violations.

New Section 7110.6(d) allows the Contractors State License Board to intervene in court proceedings within 60 days of the initial complaint. If the board does not intervene, it is deemed to have consented to comply with any resulting court order. The board retains the right to independently pursue administrative action against the license.

New Section 7110.6(e) requires that if the Attorney General establishes a wage violation, the court SHALL issue an order directing the board to suspend a license or bar initial licensure or relicensure. The court has discretion over the duration of any suspension or bar.

REQUIREMENT

New Section 7110.6(c) requires the Attorney General to notify the registrar of contractors at least 30 days before filing a civil complaint, though failure to provide notice is not a defense to the action.

SCOPE

The bill's short title was updated from a general reference to 'professions and vocations' to specifically state it adds Section 7110.6 to the Business and Professions Code, reflecting the new substantive content.

TECHNICAL

Fiscal committee review changed from 'no' to 'yes,' indicating the bill now requires fiscal analysis due to its expanded enforcement provisions.

Coauthors expanded from one member (Ahrens) to six members (Ahrens, Bryan, Harabedian, Kalra, Ortega, and Zbur).

Floor votes · Senate Sep 4, 2025 · Assembly Jun 3, 2025

How they voted

34–2

Passed · 4 other

Total votes 40

Sep 4, 2025

D Democratic30

29 Yea 1

96% Yea

R Republican10

5 Yea 2 Nay 3

50% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Oct 10, 2025

Signed into law

Approved by the Governor.

legislature

Sep 8, 2025

Lower · Passed

Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 73. Noes 2. Page 3035.).

lower

Sep 4, 2025

Introduced

In Assembly. Concurrence in Senate amendments pending.

lower

Sep 4, 2025

Upper · Passed

Read third time. Passed. Ordered to the Assembly. (Ayes 34. Noes 2. Page 2503.).

upper

Aug 29, 2025

Upper · Passed

From committee: Do pass. (Ayes 7. Noes 0.) (August 29).

upper

Aug 18, 2025

Committee

In committee: Referred to suspense file.

upper

Jul 16, 2025

Upper · Passed

From committee: Do pass and re-refer to Com. on APPR. (Ayes 11. Noes 2.) (July 15). Re-referred to Com. on APPR.

upper

Jul 7, 2025

Upper · Passed

From committee: Do pass and re-refer to Com. on JUD. (Ayes 10. Noes 1.) (July 7). Re-referred to Com. on JUD.

upper

Jun 26, 2025

Introduced

From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on B. P. & E.D.

upper

Jun 11, 2025

Committee

Referred to Coms. on B. P. & E.D. and JUD.

upper

Jun 3, 2025

Assembly · Passed

Assembly Vote: pass (73-1-4)

assembly

Jun 2, 2025

Lower · Passed

Read third time. Passed. Ordered to the Senate. (Ayes 74. Noes 1. Page 1911.)

lower

May 23, 2025

Lower · Passed

From committee: Do pass. (Ayes 13. Noes 0.) (May 23).

lower

May 7, 2025

Committee

In committee: Set, first hearing. Referred to APPR. suspense file.

lower

Apr 30, 2025

Lower · Passed

From committee: Do pass and re-refer to Com. on APPR. (Ayes 10. Noes 0.) (April 29). Re-referred to Com. on APPR.

lower

Apr 22, 2025

Lower · Passed

From committee: Do pass and re-refer to Com. on JUD. (Ayes 17. Noes 0.) (April 22). Re-referred to Com. on JUD.

lower

Apr 1, 2025

Committee

Re-referred to Com. on B. & P.

lower

Mar 28, 2025

Introduced

From committee chair, with author's amendments: Amend, and re-refer to Com. on B. & P. Read second time and amended.

lower

Mar 28, 2025

Committee

Referred to Coms. on B. & P. and JUD.

lower

Feb 21, 2025

Lower · Passed

From printer. May be heard in committee March 23.

lower

1 primary · 6 co-sponsors