Labor & Employment

SB 358 requires contractors and awarding authorities (like airports, hospitals, schools, or large commercial buildings) to provide advance notice to employees and unions when service contracts end or aren't renewed. It mandates that terminated contractors share employee details (name, hire date, job title) with the new contractor within three days of receiving termination notice. The law applies to "service workers" performing maintenance, security, food services, or cleaning at covered locations (including airports, schools, hospitals, and facilities over 75,000 sq. ft.), excluding managerial staff or short-hour workers. This rule takes effect October 1, 2026, aiming to protect job continuity for affected workers during contract transitions.

HB 5192 would create a new personal income tax deduction for workers who declare tips or gratuities to the IRS. Specifically, it adds a deduction for the full amount of tips reported by taxpayers in their annual tax filings. This directly affects service industry workers (like servers, bartenders, and hair stylists) who receive tips as part of their income. The policy change would reduce taxable income for these workers by the amount of their declared tips, lowering their overall tax bill.

SB 357 increases unemployment dependency allowances for qualifying individuals. It provides an additional $45 per week for each nonworking spouse living in the same household and for each child or disabled dependent under 18 (or under 21 in school) who was primarily supported by the claimant at the start of their benefit year. The allowance is paid on top of regular unemployment benefits, capped at 100% of the benefit rate, and limited to five dependents per claimant. The bill takes effect on July 1, 2028, directly affecting unemployed workers with dependent family members.

SB 356 requires contractors working on state or local public works projects (including off-site custom fabrication for such projects) to pay prevailing wages and provide employee welfare fund contributions or equivalent wages to workers. Violations, such as underpaying wages or failing to cover benefits, trigger $5,000 fines per offense and may lead to contract termination or debarment if violations exceed $50,000 in back wages or penalties over three years. The Labor Commissioner maintains a public list of violators, including violation details and financial penalties, and can refer repeat offenders for debarment. This law directly affects contractors and subcontractors on covered public projects, ensuring compliance with wage and benefit standards.