California State Contractors License | Laws & Regulations 2023

California State Contractors License Regulations Changes in 2023

California has introduced several new laws and regulations in 2023 that impact the contracting and construction industry.

Minimum Wage Changes

Effective January 1, 2023, all employers in California must pay a minimum wage of no less than $15.50 per hour, regardless of their size. This is part of a statewide initiative to standardize minimum wage rates, although some local jurisdictions like Los Angeles have higher rates. Additionally, the minimum annual salary for overtime-exempt employees has been raised to $64,480.

Workers’ Compensation for Contractors

Senate Bill 216 mandates that, starting January 1, 2023, contractors with C-8, C-20, C-22, and D-49 license classifications must have workers’ compensation insurance coverage, even if they have no employees. This requirement will expand to all license classifications by January 1, 2026. Roofing contractors (C39) have been under this requirement for some time.

Contractor License Bond Amounts Increase

As of January 1, 2023, the bond amount required for a Contractors State License has increased from $15,000 to $25,000. This also applies to the Bond of Qualifying Individual, which has been raised from $12,500 to $25,000.

CalSavers Retirement Savings Expansion

SB 1126 expands the eligibility for employers to participate in the CalSavers Retirement Savings Trust Act. Now, even entities with just one employee can offer payroll deposit options for retirement savings, broadening the scope to include small and single-person businesses.

Compliance Database for Public Works Projects

SB 954 establishes a database for government agencies, contractors, and subcontractors to monitor compliance with prevailing wage regulations on public works projects. This initiative aims to enhance oversight and efficiency in accessing payroll records.

California Family Rights Act Amendments

AB 1041 expands the class of individuals for whom an employee may take leave under the California Family Rights Act to include a “designated person,” effectively broadening the scope of family care and medical leave. Employers must provide written notice of these amendments to employees.

Prevailing Wage for Hauling on Public Works Projects

AB-1851 mandates that drivers used for on-hauling and hauling materials in public works projects must be paid the prevailing wage. This law also specifies that hauling under a contract with a public agency must be done by a driver employed by a licensed hauling company.

Bereavement Leave

AB 1949 requires employers to allow bereavement leave, with stipulations for advance notice and documentation. It also protects employees from adverse actions for exercising their rights under this bill.

Protection for Employees During Workplace Emergencies

SB 1044 provides protections for employees against adverse actions if they refuse to report to or leave an unsafe workplace during emergencies. However, this does not apply to all workers, such as first responders and those required by law to remain in emergencies.

Pay Transparency

SB 1162 requires employers to provide job applicants with access to salary scales for posted roles, aiming for greater transparency in the hiring process. Additionally, employers must maintain records of job titles and wage histories and submit pay data reports based on various protected characteristics.

These laws represent significant changes in the California contracting and construction landscape, emphasizing workers’ rights, transparency, and compliance.

Need Help With Your California State Contractors License

A1 Contractor Services, LLC is an invaluable resource for contractors seeking licensure to bid on work in the State of California. Their comprehensive services simplify the often complex and daunting process of obtaining a contractor’s license, ensuring that clients are fully prepared for every step of the process. From navigating the intricate application procedures to preparing for the California state exams, A1 Contractor Services, LLC provides tailored guidance and support. Their expertise in the specific requirements and regulations of California’s licensing board equips contractors with the knowledge and resources they need to succeed. They offer up-to-date information on the latest changes in laws and regulations, such as workers’ compensation requirements, bond amount updates, and prevailing wage laws, ensuring that contractors remain compliant and informed. Moreover, A1 Contractor Services, LLC assists in the essential aspects of business setup, including obtaining the necessary bonds and insurance, which are crucial for protecting both the contractor and their clients. By offering personalized assistance in completing and filing applications, preparing for exams, and understanding the legalities of contracting in California, A1 Contractor Services, LLC stands out as a comprehensive partner for contractors aiming to establish or expand their presence in the competitive California market. This support is critical not only for new contractors entering the industry but also for existing contractors looking to navigate the evolving landscape of regulations and opportunities within the state.

California State Contractors License Changes 2023