In This Edition:

·        Honest Graft

·        What Goes Around

·        OSHA Retreats?

·        Union QPQ?

·        Friends in High Places

·        Housing Costs

·        EEOC RIP?

·        Wage & Hour Space

·        Beskatta Inte Rikedom Som Vi Gjorde!

·        Mileage Rate Increase

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I Seen My Opportunities and I Took 'Em

Reports allege that a longtime White House teleprompter aide used advance knowledge of presidential speeches to place bets on Kalshi prediction markets, reportedly turning a tidy profit before the activity was detected. The employee has since been placed on unpaid administrative leave while the matter is investigated.

Frankly, I would have expected a commendation.

After all, the alleged strategy sounds remarkably similar to the philosophy of George Washington Plunkitt, the legendary New York political boss who proudly distinguished "honest graft" from dishonest graft. As Plunkitt famously put it, "I seen my opportunities and I took 'em." He argued there was nothing wrong with profiting from information available through one's position—so long as you didn't steal it.

Of course, modern ethics rules, securities laws, and prediction markets tend to see things differently. Markets only work when participants compete on equal footing. If someone has access to information the rest of the market doesn't have, confidence in the system quickly evaporates.

Plunkitt might recognize the opportunity. Today's regulators are more likely to recognize the investigation.

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Congressman Jimmy Gomez Faces Heat—And Contractors Haven't Forgotten

Los Angeles Congressman Jimmy Gomez suddenly finds himself on the defensive. According to Politico, Gomez is facing a well-funded primary challenge from the left, criticism over his positions on Israel, and reports that the House Ethics Committee is investigating allegations of sexual misconduct that he denies. While Gomez acknowledges "personal mistakes outside my marriage," he insists he violated neither House rules nor the law.

Those controversies will be sorted out by voters and the Ethics Committee.

What California contractors shouldn't forget is Gomez's own legislative record. Before heading to Congress, Assemblymember Gomez authored AB 1431 (2015), the bill that transformed Job Order Contracting by requiring school districts and community college districts using JOC to operate under Project Labor Agreements. That PLA mandate is exactly the language Assemblymember Mike Fong now seeks to preserve and extend through AB 1809.

I met with Gomez while AB 1431 was moving through the Legislature to explain how the PLA mandate would shut many merit shop contractors out of JOC work. His response was memorable, not because he engaged on the merits, but because he dismissed them. Smiling, he said he expected to lose the occasional Republican vote and advised me to "save my breath."

Eleven years later, we're still fighting the same battle. AB 1809 would continue the very mandate Gomez put into law in 2015, denying school districts the freedom to decide for themselves whether a PLA makes sense. Contractors may not have changed Congressman Gomez's mind then, but they shouldn't forget who wrote the mandate in the first place.

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As Federal OSHA Pulls Back, States Diverge on Workplace Safety Rules

• With federal OSHA expected to remain largely inactive on new rulemaking, states are splitting into different directions on workplace safety — some tightening rules on heat, ergonomics, and workplace violence, while others move to roll back protections that exceeded federal minimums, creating a compliance patchwork for multi-state employers.
• Attorney Samuel H. Pond notes that “state control” doesn’t necessarily mean stricter enforcement — California, Oregon, and Washington run some of the most active state programs, while Kentucky’s HB 398, passed in March 2025, bars its state plan from enforcing any safety standard stricter than OSHA’s federal floor.
• Pond argues that when injury prevention weakens at the regulatory level, the workers’ compensation system absorbs the fallout through more claims, higher premiums, and increased litigation, and advises facilities managers to build safety programs to the strictest standard they operate under rather than the federal minimum, since OSHA violations can still fuel negligence claims and raise insurance costs even though federal fines themselves remain relatively modest.

READ MORE

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CV Mayor Accuses Union of Quid-Pro-Quo Offer

Chula Vista Mayor John McCann recently accused a prominent San Diego County labor union of trying to strong-arm him into supporting a controversial ballot measure by promising not to fund his opponent in this year’s mayoral race in exchange for his support.

McCann said a representative of Local 89 of the Laborers International Union of North America made the offer during a recent meeting to discuss a charter reform measure the union has been seeking to place before Chula Vista voters in November.

The measure, which would give city councilmembers a large pay raise and make other significant changes to city government, has faced strong opposition from residents.

“I was informed if I supported placing the ballot measure on the ballot, they would not fund my opponent in the election,” McCann said from the dais during debate over the measure at Tuesday’s Chula Vista City Council meeting.

“He was trying to make a deal with me,” McCann said of Kelvin Barrios, LIUNA’s director of government affairs, who met with the mayor last month to discuss the ballot measure. “I feel it was unethical,” McCann said. “I don’t believe in a quid pro quo.”

Barrios emphatically denied McCann’s accusation and said, in fact, it was McCann who “wanted assurance we wouldn’t spend money against him in the general election. I said I can’t make those assurances,” Barrios said. “In no way was I trying to tie consideration of [the ballot measure] to political spending… This is the mayor making a false accusation.

After hearing from more than 45 public speakers, almost all of them opposed to the ballot measure, the City Council voted 4-1 to pull the measure from the November ballot and refer it to the city’s Charter Review Commission for further consideration and public input. [VOSD]

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AZ Representative Defends Tate Bros

Accused sex traffickers Andrew and Tristan Tate were arrested by U.S. marshals in Miami last weekend, as they were set to host a bare-knuckle boxing match. First-term Rep. Abe Hamadeh (R-Ariz.) (Maricopa County) has become one of the Tate Brothers’ most prominent defenders in the aftermath of the extradition, claiming in a tweet that they’re victims of politicized “lawfare” in both the U.K. and Romania. He doesn’t specify why he thinks the brothers would be targets of lawfare—what political reasons these countries would have for taking down the Tates. Nevertheless, Hamadeh said the Trump administration should refuse to extradite the brothers, who are dual American and British citizens.

“There should be no extradition of American citizens when the charges are unclear and political,” he continued. “The US government should either charge them with a crime or protect them from reckless court proceedings in the UK and Romania,” Hamadeh wrote.

Hamadeh is an attorney, U.S. Army intelligence officer, and former prosecutor currently serving as the U.S representative for Arizona's 8th congressional district since 2025. A member of the Republican Party, he is the first Arab American elected to Congress from Arizona.

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By the Numbers

From the Legislative Analyst’s Office’s latest housing affordability tracker:

·        $775,000: average cost of a mid-tier home in California — twice as much as the U.S. as a whole

·        2020-2022: the period of rapid growth of home prices. During this time, bottom-tier home prices increased by 15% every year, compared to 6% per year on average for the two decades prior.

·        44%: the percentage of California households that have incomes high enough to qualify for a mortgage now, down from 57% in 2019.

·        75%: the percentage of California homeowners that have mortgage interest rates below 5%, which makes selling their home and buying a new one with a mortgage at current rates significantly more expensive.

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EEOC Proposes to Rescind All EEO Reporting and Recordkeeping Requirements

On July 21, 2026, the U.S. Equal Employment Opportunity Commission (EEOC) voted to approve a proposed rule which would rescind a series of agency demographic reporting requirements, most notably the EEO-1 Form, which private employers of 100 or more employees have been required to file for decades. The agency also proposed to repeal similar requirements for unions (the EEO-3 report), state and local governments (EEO-4), public-school systems (EEO-5), and institutions of higher education (EEO-6) (collectively, the “EEO Reports”). Finally, EEOC has proposed rescinding the related recordkeeping and record preservation requirements supporting these reports. The proposal is expected to be published in the Federal Register shortly, starting a 30-day public comment period. After that, EEOC will review and consider the comments submitted and adopt a final rule.

Read More

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What’s Happening in the Wage & Hour Space That Should Command Your Attention?

A lot is happening in the wage and hour space. In the Pacific Northwest, there’s been intense activity from California plaintiffs’ firms filing wage and-hour class actions. In fact, Washington State is viewed as the next high-exposure target for meal and rest break claims. But that’s not limited to Washington State. Beyond Washington, approximately 20 states have adopted meal or rest break requirements, and the patchwork of inconsistent state laws keeps getting more complex - with Minnesota creating new requirements and penalties just this year. So, employers now need more than just a California supplement to their national wage and hour compliance strategy. Today, they need intentional, state-by-state review and analysis. And that’s not all.

Read More

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Sweden’s Warning to California: Don’t Tax Wealth Like We Did

California has often looked to Scandinavia — in particular, Sweden — as a model for combining prosperity with ambitious social support. As a Swede who has spent much of my career studying taxation, entrepreneurship, and business ownership, I understand why. Sweden has a large welfare state, high taxes, and strong public institutions. But Sweden also has a warning for California: Not every tax that sounds fair ends up strengthening society. The wealth tax is the clearest example.

California voters will be asked in November to approve a one-off 5% tax on residents with net worth of more than $1 billion. The purpose is understandable: fund healthcare, education, and other public priorities. The appeal is equally obvious. Why not ask the very richest residents to contribute more?

Story

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California Employers Take Note of the Recent IRS Mileage Rate Increase

California Labor Code section 2802 requires employers to reimburse employees for necessary expenses incurred in performing their job duties, which may include an employee’s use of their personal vehicle for work purposes, such as for work-related travel or driving between work sites.

When determining how to reimburse an employee for use of their personal vehicle, employers may select between different methods for reimbursement, including actual expense, mileage reimbursement, or a stipend.

The California Labor Commissioner has opined that the use of the Internal Revenue Service (IRS) mileage rate will generally satisfy an employer’s obligation to reimburse employees for the expenses incurred in the use of an employee’s car for work purposes, in the absence of evidence to the contrary.

More

In This Edition:

·        Sacramento Transportation Tax Proposed

·        PAGA Reform

·        San Diego Hotel Tax Sham

·        Classifications for Public Works Projects

·        California Worker Walkaround Rule

·        Proposition Numbers Assigned to California November Ballot Measures

·        21st Century ROAD to Housing Act

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Transportation Tax Today — PLA Tomorrow?

Sacramento voters are likely to decide this November whether to approve the Sacramento Safe Streets and Affordable Transit Measure of 2026, a citizen-sponsored initiative that would impose a permanent one-half-cent local sales tax dedicated to transportation improvements. Because it is a citizen initiative, the measure requires only a simple majority to pass. Supporters estimate it would generate approximately $75 million annually for street maintenance, transit operations, and related infrastructure.

The coalition behind the measure is notable. It includes city leaders, transportation advocates, neighborhood organizations, and construction interests such as the Sacramento-Sierra Building & Construction Trades Council, Teichert Construction, and Siemens Mobility. Campaign finance disclosures also identify Sacramento Area Electrical Workers Labor Management and Siemens Industry Inc. as the campaign's two largest financial supporters.

While the measure itself does not mandate project labor agreements (PLAs), WECA members should recognize the political reality that the city’s broad PLA mandate will apply. The organizations investing the most in the campaign are also the most likely to advocate that the resulting transportation projects be carried out under union-only PLAs. California has repeatedly seen major public funding measures followed by efforts to channel the resulting construction work through PLA requirements.

For merit shop contractors, the concern extends beyond the tax itself. A permanent revenue stream creates a permanent pipeline of public works projects—and organized labor will undoubtedly seek to ensure those projects are built under agreements that limit open competition. Sacramento voters should understand that approving a permanent tax increase may also fuel continuing battles over who is allowed to compete for the work.

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PAGA Reform? The Lawyers Didn't Notice.

When Governor Newsom and legislative leaders announced the 2024 "PAGA reform" package, Californians were promised fewer abusive lawsuits, more opportunities for employers to correct mistakes, and a better balance between protecting workers and discouraging litigation.

A recent $2.25 million settlement involving Sacramento's Mikuni restaurant chain suggests those promises have yet to become reality.

According to published reports, approximately 3,000 employees will share about $1.1 million in payments—an average of roughly $394 per employee. The named plaintiff will receive a $10,000 enhancement payment. The plaintiffs' law firm, Blackstone Law, meanwhile, will receive more than $742,000 in attorney fees, with additional settlement funds allocated to penalties, administration costs, and payments to the state. The largest check does not go to the average worker—it goes to the litigation process itself. (The case was initially filed in 2023, before the 2024 "reforms”)

To be clear, employers should comply with California's labor laws, and employees deserve to be paid every dollar they earn. But the continuing question is whether PAGA has become a system designed primarily to compensate workers—or to generate lawsuits.

The 2024 reforms were supposed to encourage employers to correct violations early, reduce penalties for good-faith compliance, expand opportunities to cure alleged violations, and discourage meritless claims. Yet PAGA filings and settlement dollars have continued to climb, prompting the Labor & Workforce Development Agency to propose yet another round of regulations in 2026 aimed at high-volume and vexatious filers.

If "comprehensive reform" is followed almost immediately by proposals for additional reforms, perhaps the Legislature didn't solve the real problem.

For California's contractors and other employers, the lesson is obvious. PAGA remains a litigation industry measured in billions of dollars annually. Until the financial incentives favor quickly correcting workplace mistakes rather than pursuing lengthy lawsuits, employers will continue to spend enormous sums enriching the legal process, while the average "aggrieved employee" receives only a modest recovery.

That isn't meaningful reform. It's the same business model with a fresh coat of paint.

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Just In: Politicians Lie

Stop the presses.

In 2020, San Diego voters approved Measure C (a permanent hotel tax increase) after being promised it would generate new funding for homelessness services, road repairs, and a convention center expansion. The sales pitch was straightforward: this wasn't about replacing existing spending—it was about doing more.

Six years later, reality has arrived.

A recent Voice of San Diego investigation found that Measure C revenue is largely being used to plug holes in the city's existing budget. Instead of funding new homelessness programs, the tax is helping pay for services the city was already providing. The money didn't supplement the budget. It supplanted it.

City officials insist they had little choice. Budgets tightened. Deficits emerged. Priorities changed.

Exactly.

That's why taxpayers should be skeptical whenever politicians promise that a tax increase is "just for" one worthy purpose. Money is fungible. Once government collects another dollar, yesterday's promises become today's budget strategy.

The same script plays out in Sacramento every year. Bills are sold as narrowly targeted. Tax increases are advertised as temporary. Labor mandates are described as having little or no cost. Opponents are dismissed as alarmists.

Then the ink dries.

The tax becomes permanent. The mandate expands. The costs grow. And the original promise quietly disappears into the next budget cycle.

WECA members know that the real question isn't what politicians promise before Election Day. It's what the law actually allows them to do after Election Day.

History suggests those are often two very different things.

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Law Requires Awarding Agencies to Follow CSLB Regulations When Determining Classifications for Public Works Projects

The Contractors State License Board (CSLB) is providing additional guidance on following licensing regulations for public works projects because of Senate Bill 1455 (2024).

SB 1455 amended California Business and Professions Code (BPC) §7059 to clarify that awarding authorities must ensure that contractors bidding on public works projects hold the license classification appropriate for the work being performed, in accordance with CSLB regulations. The italicized information below in BPC 7059 (b)(1) shows what was changed in the law.

1. In public works contracts, as defined in Section 1101 of the Public Contract Code, the awarding authority shall determine the license classification necessary to bid and perform the project, in accordance with the classifications prescribed by this article and as set forth in Division 8 of Title 16 of the California Code of Regulations.

SB 1455 clarifies that awarding authorities must determine the required license classification using CSLB’s classification descriptions in Division 8 of Title 16 of the California Code of Regulations. Previously, the law required proper licensure but did not expressly connect to CSLB’s classification descriptions.

The classification descriptions noted in Division 8 of Title 16 of the California Code of Regulations are included in CSLB’s Description of Classifications publication, which awarding agencies should review in determining the most appropriate classification or classifications.

In addition, CSLB’s Fast Facts: What Jobs "B" General Building Can/Cannot Perform provides further clarification to help awarding authorities determine whether a “B” is appropriate for a project. While it is CSLB’s largest classification, the “B” is not always suitable depending on the project. “B” General Building may not be appropriate if the work does not involve the construction of a structure involving framing or carpentry, does not require multiple building trades, and is not incidental to a project.

Awarding authorities must review the project scope and select the appropriate classification that best aligns with the work described using CSLB’s Description of Classifications.

Contractors are responsible for ensuring they hold the appropriate license classification at the time of bid and use properly licensed subcontractors for work outside their classification. Failure to do so may affect bid eligibility and could result in enforcement action under existing contractor license laws.

For more information or questions regarding classification determinations, contact CSLB’s Classification Deputy at Classifications@cslb.ca.gov.

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Cal/OSHA Takes Next Step Toward Worker Walkaround Rule

On July 1, 2026, Cal/OSHA took another step toward implementing a California variation of federal OSHA’s “worker walkaround rule” by posting proposed modifications to the proposed text and providing a narrow 15-day period for public comment, through July 16, 2026. This action follows a previous comment period on the initial proposal, and a public hearing conducted on April 1, 2026.

The new regulation, Director’s Regulations §331.8, would implement a federal regulation expanding who can be considered a representative for purposes of accompanying Cal/OSHA inspectors on site visits. It would allow employees in nonunion workplaces to designate a representative to “assist” in inspections.

Critics say the change could allow third parties, such as plaintiff attorneys or a union representative in a nonunion shop, if chosen by the employee, to insert themselves into the inspection process. The federal regulation on which the California version is based is under challenge in federal court.

The proposed Cal/OSHA modifications are in sections (a) and (b):

(a): “A representative of the employer and a representative authorized by employees shall be given an opportunity to accompany the Chief or their representative during the inspection of any workplace for the purpose of aiding such inspection.”

(b): “When the representative(s) authorized by employees is not an employee of the employer nor the collective bargaining representative, they may accompany the Chief or their representative during the inspection if, in the judgment of the Chief or their representative, good cause has been shown why their participation accompaniment is reasonably necessary to the conduct of an effective and thorough physical inspection of the workplace….”

DOSH says the changes are based on stakeholder comments.

Read More

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Proposition Numbers Assigned to November Ballot Measures

The ballot designations have been set for the 14 statewide measures that will appear on the November 3 ballot, setting the stage for an election that could result in the most sweeping changes in tax policy in many years.

Voters will face a staggering $44 billion in bonds, an $11.25 billion affordable housing measure championed by Assemblymember Buffy Wicks, a $25 billion bond organized by former legislative leader Bob Hertzberg to fund home loans for the middle-class, and an $8.4 billion bond to finance immunology research.

For decades, it was rare to see even one bond on the ballot that reached into the double digits, and since voters shot down a $15 billion school bond in 2020, campaigns have viewed higher numbers as a potential liability.

Yet this year, voters will not only see big numbers but will find them attached to a common issue. Two of the bonds, the affordable housing measure, Prop. 1, and middle-class loans, Prop. 37, as well as a CEQA reform measure, all target California’s housing shortage.

“It was the first thing that caught my attention when I looked at the ballot,” said Mark Baldassare, the survey director of the Public Policy Institute of California. “I struggle to think of another example in which there are two double-digit billion bonds on the same topic.”

It will, in fact, be a first. But in the early stages of the campaign, proponents of housing bonds argue the measures will not cannibalize each other but rather draft off one another.

During a news conference at an affordable housing project in downtown Oakland this morning, Gov. Gavin Newsom told reporters that voters "absolutely should support” Wicks' bond, but he declined to comment on the competing housing measures.

Evan Westrup, a spokesperson for the Yes on 37 campaign, said Hertzberg and company view the measures as "complementary" and expect voters to appreciate the need for supporting both. Hertzberg did not pull together his initiative out of the blue and was in “close contact throughout” with Wicks and her team, Westrup said. Wicks told ABC10 that she viewed the measures as parallel, noting that Hertzberg’s targets middle-class housing, whereas her bond targets lower-income Californians.

Supporters of CEQA reform also expressed little concern that so many housing initiatives would affect their campaign.

“On the list of things I’m preparing for, in terms of potential pitfalls, the other measures aren’t really on there,” said Amelia Matier, a spokesperson for the campaign.

But according to Baldassare, the realities of ballot-measure politics could pose challenges for all related measures. Ballot measures never exist in isolation, and voters are very used to dueling propositions, in which one cancels out or targets another. Even on the 2026 ballot, there will be a measure proposing to tax billionaires and two measures that would preempt such an effort.

Although Hertzberg’s bond is a revenue bond, meaning it would be paid for by homebuyers' mortgage payments, and Wicks’ bond is a general obligation bond backed by taxpayers, it’s unclear if voters will make that distinction.

As the campaigns behind both measures get into gear, they will need to account for a housing-heavy ballot and a potentially stingy electorate. Recent polling showed support for the middle-class housing bond at 53 percent, while a February PPIC poll placed support for an affordable housing bond at 49 percent.

The Measures

Proposition 1: Housing Bond. SB 417, the Veterans and Affordable Housing Bond Act of 2026, placed on the ballot by the Legislature.

Proposition 2: Changes to Spending Limit. ACA 20, placed on the ballot by the Legislature, would change the state appropriations limit (the Gann Limit) by, among other things, doubling the amount that can be held in the state’s “rainy day fund” – which has the effect of reducing the likelihood of triggering the provision that requires excess revenue to be returned to taxpayers.

Proposition 3: Income Tax on High Earners. A permanent extension of the “temporary” personal income tax surcharges on high earners (Initiative 25-0016, filed by the California Teachers Association). CalTax opposes the measure and launched a “No on Prop. 3” campaign last week. Although Proposition 3 was qualified via an initiative and normally would have been placed farther down on the ballot, the Legislature and governor approved a last-minute bill to give it special treatment and place it higher on the ballot, in hopes that doing so would increase its odds of passage.

Proposition 4: Public Financing of Campaigns. SB 42, placed on the ballot by the Legislature to authorize local governments to distribute tax dollars for use in political campaigns. CalTax opposes Proposition 4.

Proposition 5: Recall Process. SCA 1, placed on the ballot by the Legislature to change the recall process (among other things, it provides that the lieutenant governor becomes governor if the sitting governor is recalled by voters).

Proposition 37: Loan Program for Middle-Income Buyers of New Homes. Initiative 25-0013A1, a $25 billion bond to fund a down-payment program for homebuyers, to be repaid via mortgage payments from those homebuyers, filed by former state lawmaker Robert Hertzberg.

Proposition 38: Bond for Immunology Research. Initiative 25-0026A1, authorizing an $8.4 billion bond to fund technologies that use the body’s immune system to treat disease.

Proposition 39: Voter Identification. Initiative 25-0007A1, by Assembly Member Carl DeMaio and others, establishes a process requiring voters to present government-issued identification at the polls.

Proposition 40: Wealth Tax. Initiative 25-0024A1, filed by the Service Employees International Union – United Healthcare Workers West, to impose a 5 percent tax on net worth above $1 billion, retroactive to January 1. CalTax opposes Proposition 40.

Proposition 41: Audit Requirements. Initiative 25-0040A1, requiring audits of programs funded by new state special taxes and prohibiting new state taxes that are excluded from the state’s spending limit, including the wealth tax that will appear on the same ballot. CalTax supports Proposition 41.

Proposition 42: Ban on Retroactive Taxes and Wealth Taxes. Initiative 25-0041A1, prohibiting any new state tax that either taxes the ownership or control of personal property (including retirement accounts, financial assets, investment accounts, business interests, and intellectual property), or applies retroactively based on the taxpayer’s conduct, activities, or status that occurred before the new tax’s effective date, with limited exceptions. CalTax supports Proposition 42.

Proposition 43: Local Taxpayer Protection Act. Closes the Upland loophole by approving the Local Taxpayer Protection Act that was placed on the ballot by the Legislature (ACA 22) as part of an agreement with Howard Jarvis Taxpayers Association (HJTA) President Jon Coupal. The measure amends the California Constitution to modify California's local tax approval processes, requiring two-thirds voter approval for all local special taxes – closing the loophole created by the California Supreme Court’s 2017 ruling in California Cannabis Coalition v. City of Upland, which opened the door for local governments to claim that constitutional vote requirements don’t apply to measures placed on the ballot via the initiative process, even when elected officials are heavily involved. CalTax supports Proposition 43.

Proposition 44: Health Clinic Spending. Initiative 25-0008A1, requiring community health clinics to spend at least 90 percent of their revenue on program services.

Proposition 45: Environmental Review Reform. Initiative 25-0023A1, the California Chamber of Commerce’s Building an Affordable California Act, which would expedite the environmental review process of housing, transportation, water, health, and clean-energy projects. CalTax supports Proposition 45.

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Federal Housing Bill Shows a Different Path

Congress recently approved the bipartisan 21st Century ROAD to Housing Act, one of the most significant federal housing packages in years. The legislation aims to increase housing production by streamlining regulations, modernizing federal housing programs, expanding financing options, and reducing barriers that make building new homes harder and more expensive.

Notably, Congress resisted the temptation to load the bill with the growing list of labor mandates that have become commonplace in California housing legislation. While federally funded construction under the Act is subject to prevailing wage protections, the bill does not require Project Labor Agreements, mandate union labor, or impose California's "skilled and trained workforce" requirements as conditions for housing development.

Whether one supports every provision of the legislation or not, the contrast with California is striking. Rather than using housing policy as a vehicle for expanding labor mandates, Congress largely focused on a single objective: building more housing. California policymakers should take note. If the goal is to increase housing production and improve affordability, reducing unnecessary barriers may prove more effective than continually adding new conditions on who is allowed to build.

Read more here.

In This Edition:

·        Another Bureaucracy

·        June Election

·        Fatigue’s Role in Safety

·        Social Security and Medicare Broke

·        Classifications for Public Works Projects

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Another Bureaucracy Won't Build a Single Home

On July 1, Governor Gavin Newsom officially launched California's new Housing and Homelessness Agency, complete with a secretary, six deputy secretaries, communications staff, external affairs staff, legal counsel, advisors, and assistants. Newsom announced the reorganization plan a year ago after a stinging audit that showed little progress after spending billions on homelessness.

The annual salary bill for just these twelve senior officials is more than $2.1 million. Add pensions, health benefits, office space, support staff, travel, and overhead, and taxpayers will likely spend well over $3 million every year simply to operate the executive suite.

Perhaps that would be easier to accept if California had a proven record of success.

It doesn't.

In 2024, the California State Auditor concluded that the state had spent nearly $24 billion on homelessness programs over five years without consistently tracking whether the money produced results. The audit found that the state lacked reliable information about program costs, outcomes, and effectiveness, making it difficult—even for policymakers—to know which programs worked and which did not.

That audit wasn't written by political opponents. It came from California's own independent State Auditor.

Now, instead of demonstrating measurable improvements in housing production or reductions in homelessness, Sacramento has unveiled another organizational chart.

Of the many ways the scarcity of affordable housing affects most people, “the lines on the org chart” don’t crack the “top 100 list,” Sen. Christopher Cabaldon, a Napa Democrat, said of the governor’s proposal at a hearing.

Cabaldon noted that executive reorganizations are a semi-regular feature of California governance. The Business, Consumer Services, and Housing Agency is itself the product of a reorganization that spun off California’s independent transportation agency.

“The dance of the secretaries we do constantly, always with grand ambitions,” said Cabaldon. “Simply saying that it’s going to cause more focus, that it will be streamlined, that it will cause leadership-level action — but how?”

The question Californians should ask isn't whether these appointees are capable or well-intentioned. Many undoubtedly are. The real question is whether adding another cabinet agency, another secretary, more deputy secretaries, more communications staff, and more administrators will accomplish what billions of dollars and dozens of existing programs have failed to achieve.

Government agencies rarely measure success by eliminating themselves. They measure success by expanding responsibilities, hiring more staff, and requesting larger budgets.

Housing affordability will not improve because Sacramento has another deputy secretary. Homelessness will not decline because another communications office issues press releases.

Homes are built by reducing barriers to construction, shortening permitting timelines, lowering costs, and holding public programs accountable for measurable outcomes.

Until California can demonstrate that its existing billions in homelessness spending are producing results, taxpayers are justified in viewing another layer of bureaucracy not as a solution, but as another expensive promise.

The new Housing and Homelessness Agency should not be judged by the size of its executive staff or the polish of its organizational chart. It should be judged by one standard alone: are more Californians housed, and are fewer Californians homeless? If those numbers don't improve, this agency will simply become another line item in a long history of good intentions and disappointing results.

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June Election

The June election is over, except for the counting (by hand in Shasta), and there are a few races I’ll be watching in November.

CA 6 (Sacramento): One of the new Prop 50 districts drawn to give Democrats a new seat. Kevin Kiley (R I) leads with 47,165 votes. Second is Democrat Richard Pan with 45,008. Republican Michael Stansfield is at 39,118. This will probably be a Democratic pickup because FIVE Democrats ran in the primary, nearly eliminating Pan from the November runoff. This should be Pan’s win and third time in office.

CA 7 (Sacramento): This will be a Dem-on-Dem runoff in November. Incumbent Doris Matsui is in second place! Dem Mai Vang leads with 31%. Matsui could lose in November, but it will be expensive. Republicans got 36% of the votes in June and are more likely to vote for Matsui over Vang.

CA 14 (East Bay): This is Eric Swalwell’s old seat. Democratic State Senator Aisha Wahab leads with 38%, and Melissa Hernandez, another Democrat, has 17%, but it is unclear where voters will move.

AD 9 (Ripon): Assembly minority leader Heath Flora, who has been MIA from his district longer than Tom Kean Jr., is leading. This is a +10 R district, so Flora should win in November, but we can hope, right?

SD 4: But in one of the more interesting races, an incumbent will not make the runoff. State Senator Marie Alvarado-Gil, a Republican from Jackson, is in third place in the race for Senate District 4, which means she will not advance to the November general election. The race for the red-leaning district includes Democrat Jaron Brandon, a Tuolumne County supervisor. But Republican candidate Alexandra Duarte came in second and will probably pick up most of the Alvarado-Gil voters. This was the first time Alvarado-Gil has faced an election since switching parties from the Democratic Party to the GOP in 2024. This is an R+7 district, so Duarte will probably win in November.

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Study Links Construction Worker Fatigue to Unsafe Behaviors

• Physical fatigue strongly contributes to construction safety incidents by increasing the likelihood of unsafe worker behavior. 
• The ASCE Library study evaluated this impact by monitoring three workers performing material handling tasks over three days. 
• Results showed that unsafe actions increased notably after 30 minutes of strenuous manual work as physical fatigue accumulated. 
• Continuous electrocardiogram data confirmed significant correlations between these workplace safety risks and specific cardiac variations.

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Social Security and Medicare Trust Funds Will Be Depleted Within the Next Decade

The Social Security and Medicare Trustees released their annual reports on the programs’ financing, showing that the future of these vital programs remains at risk. The Social Security Trustees note that the Old-Age and Survivors Insurance (OASI) Trust Fund is expected to become depleted in 2032, one year earlier than projected in the last two reports and the same as the Congressional Budget Office projected earlier this year. Upon depletion of the OASI Trust Fund in just six years, millions of older Americans would face an automatic cut of 22 percent to their Social Security retirement benefits. 

More

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Law Requires Awarding Agencies to Follow CSLB Regulations When Determining Classifications for Public Works Projects

The Contractors State License Board (CSLB) is providing additional guidance on following licensing regulations for public works projects as a result of Senate Bill 1455 (2024). 

SB 1455 amended California Business and Professions Code (BPC) §7059 to clarify that awarding authorities must ensure that contractors bidding on public works projects hold the license classification appropriate for the work being performed, in accordance with CSLB regulations. The italicized information below in BPC 7059 (b)(1) shows what was changed in the law. 

1. In public works contracts, as defined in Section 1101 of the Public Contract Code, the awarding authority shall determine the license classification necessary to bid and perform the project, in accordance with the classifications prescribed by this article and as set forth in Division 8 of Title 16 of the California Code of Regulations.

What Changed

SB 1455 clarifies that awarding authorities must determine the required license classification using CSLB’s classification descriptions in Division 8 of Title 16 of the California Code of Regulations. Previously, the law required proper licensure but did not expressly connect to CSLB’s classification descriptions. 

The classification descriptions noted in Division 8 of Title 16 of the California Code of Regulations are included in CSLB’s Description of Classifications publication, which awarding agencies should review in determining the most appropriate classification or classifications.

In addition, CSLB’s Fast Facts: What Jobs "B" General Building Can/Cannot Perform provides further clarification to help awarding authorities determine whether a “B” is appropriate for a project. While it is CSLB’s largest classification, the “B” is not always suitable depending on the project. “B” General Building may not be appropriate if the work does not involve the construction of a structure involving framing or carpentry, does not require multiple building trades, and is not incidental to a project.

What This Means

Awarding authorities must review the project scope and select the appropriate classification that best aligns with the work described using CSLB’s Description of Classifications.

Contractors are responsible for ensuring they hold the appropriate license classification at the time of bid and use properly licensed subcontractors for work outside their classification. Failure to do so may affect bid eligibility and could result in enforcement action under existing contractor license laws.

For more information or questions regarding classification determinations, contact CSLB’s Classification Deputy at Classifications@cslb.ca.gov.

In This Edition:

·        Election 26: Close Races

·        Multiemployer Pension Withdrawals

·        Workplace Violence Prevention

·        Energy Storage in AZ

·        Bills!

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June Election

·        36 days until the Secretary of State certifies election results

·        23,155,447 registered voters in California

·        33.2% voter turnout in the last gubernatorial primary election in 2022

·        152 days until the general election

The June election is over, except for the counting (by hand in Shasta), and there are a few close races.

HR 6 (Sacramento): One of the new Prop 50 districts drawn to give Democrats a new seat. Kevin Kiley (R I) is ahead with 28,000 votes. In second is Republican Michael Stansfield. If this ½ stands, it will deny the Democrats a pickup. This is because FIVE Democrats ran in the primary (cue the circular firing squad emoji).

HR 7 (Sacramento): This could turn out to be a Dem-on-Dem runoff in November. Incumbent Doris Matsui is clearly ahead, but second-place Dem Mai Vang leads the Republican Zach Wooden by less than 1,000 votes. Matsui will win in November, but if Vang ends up in the runoff, it will be expensive.

HR 14 (East Bay): This is Eric Swalwell’s old seat. State Senator Aisha Wahab leads with 34%, but one Dem and two Republicans are within 900 votes of each other. Wahab will win, but if Melissa Hernandez, the D right now in second, prevails, this could be $$.

HR 16 (South Bay): Former San Jose Mayor (no, not Mahan) incumbent Sam Liccardo will win in November, but two Republicans are within 500 votes of each other.

SD 24 (Los Angeles): This open D+29 seat has three Dems within 5,000 votes

AD 9 (Ripon): Assembly minority leader Heath Flora, who has been MIA from his district longer than Tom Kean Jr., is leading, but with two candidates for second within 500 votes of each other; one D, one R. This is a +10 R district, so Flora should win, but we can hope, right?

SD 4: But in one of the more interesting races, an incumbent will probably not make the runoff.

State Senator Marie Alvarado-Gil, a Republican from Jackson, is in third place in the race for Senate District 4, which puts her at risk of not making it to the November general election. The race for the red-leaning district includes Democrat Jaron Brandon, a Tuolumne County supervisor.

Early results show Brandon leading, with Republican candidate Alexandra Duarte trailing by more than six percentage points and Alvarado-Gil trailing Duarte by nearly five percentage points. This is the first time Alvarado-Gil has faced an election since switching parties from the Democratic Party to the GOP in 2024. This is an R+7 district, so Duarte will probably win in November.

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SCOTUS Addresses Rules for Withdrawals from MEPPs

The US Supreme Court recently unanimously held that the actuarial assumptions underlying the calculation of an employer’s withdrawal liability from an underfunded multiemployer pension plan can be selected after the date the employer left the plan.

Story

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California Releases Further Revisions to Draft General Industry Workplace Violence Prevention Standard

California recently released the latest iteration of its proposed regulatory standard to implement the state’s law imposing workplace violence prevention safety requirements on nearly every employer in California. A period of public comment on the proposal and the new revisions is open through June 1, 2026. Employers with any employees in California may consider whether to comment. A final version, accompanied by formal rulemaking support documents, is expected to emerge in the coming months, likely with little variation from the recently released proposal. Employers can prepare for compliance by reviewing how the recent version differs from the requirements already in effect under Labor Code § 6401.9.

More

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Arizona Ranks No. 2 in US for New Storage Capacity Added This Year

The state installed 940 megawatt-hours in the first quarter, trailing only Texas. Arizona now has more than 20 gigawatt-hours of utility-scale storage installed.

Story

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Bills

Here’s a look at bills WECA is supporting and opposing that had votes in the last two weeks.

AB 1235 (Rogers, D) Prohibits a contractor from being prequalified for, shortlisted for, or awarded a design-build contract with the Trustees of the California State University unless the contractor provides an enforceable commitment to the trustees that the contractor and its subcontractors at every tier will use a skilled and trained workforce to perform all work on the project or contract. (Based on 01/22/2026 text) WECA Position: Oppose

06/03/26 - SEN. ED. (Y:5 N:2 A:0) (P)

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AB 1707 (Davies, R) Introduces provisions for electricians to apply for certification and exams electronically, and also renew certifications online. Additionally, it allows individuals who fail the certification exam to promptly re-register and retake it at the next available slot. (Based on 02/04/2026 text) WECA Position: Support

05/28/26 - ASM. THIRD READING (Y:77 N:0 A:3) (P)

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AB 1813 (Ward, D) Existing law requires the California Public Utilities Commission (CPUC) to evaluate existing customer community renewable energy programs to modify and/or terminate them. It also requires the CPUC to determine, based on specified criteria, whether it is beneficial to ratepayers for an electrical corporation to develop a new tariff or modify an existing one for community renewable energy, including ensuring that at least 51% of the energy capacity serves low-income customers. This bill extends the operation until 2027 (Based on 04/27/2026 text) WECA Position: SIA (support if amended)

05/22/26 - ASM. THIRD READING (Y:51 N:8 A:21) (P)

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AB 1859 (Ortega, D) This bill requires that awarding bodies or owners grant access to joint labor-management committees (JLMCs) to "investigate" prevailing wage and apprenticeship violations. These committees can take legal action if access is denied. Additionally, the bill specifies that courts may impose civil penalties for violations. (Based on 05/18/2026 text) WECA Position: OUA (oppose unless amended)

05/27/26 - ASM. THIRD READING (Y:60 N:14 A:6) (P)

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AB 1860 (McKinnor, D) Authorizes a county office of education (COE) to use the design-build and progressive design-build method for facilities projects in excess of $1 million and $5 million, respectively, subject to approval of the county superintendent of schools, and provides the county superintendent of schools with exclusive authority to award design-build contracts. Projects include all construction, alteration, demolition, installation, repair, and maintenance work that is subject to a skilled and trained workforce (including subcontractors, unless the school district has entered into a project labor agreement) for public works projects over $5 million. (Based on 04/13/2026 text) WECA Position: Oppose

06/03/26 - SEN. ED. (Y:5 N:1 A:1) (P)

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AB 1976 (Wicks, D) Bill repeals and replaces the Pedestrian Mall Law of 1960 with the Pedestrian Mall Law of 2026. The bill exempts the establishment or expansion of pedestrian malls from CEQA while requiring that such projects meet the same local-agency and labor-related conditions that apply to other transportation exemptions, like STW, which is waived with a PLA. (Based on 05/21/2026 text) WECA Position: SIA (support if amended)

05/28/26 - ASM. THIRD READING (Y:49 N:19 A:12) (P)

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AB 2033 (Papan, D) This bill would allow city councils to award yearly job-order contracts, each capped at $500,000, for repair, remodeling, or repetitive work based on unit prices. These contracts cannot be used for new construction projects. They must be awarded to the lowest responsible bidder and be based on standard plans and specifications. Requires City JOCs to use a STW unless there is a PLA. (Based on 05/22/2026 text) WECA Position: OUA (oppose unless amended)

05/27/26 - ASM. THIRD READING (Y:69 N:1 A:10) (P)

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AB 2139 (Garcia, D) This bill would expand the definition of “exempt surplus land” to include land owned by the City of Ontario that is located within the sports and entertainment district commonly known as Ontario Sports Empire, subject to a land use plan formally adopted by the City of Ontario for the coordinated development of the district. (Based on 04/16/2026 text) WECA Position: SIA (support if amended)

05/28/26 - ASM. THIRD READING (Y:70 N:1 A:9) (P)

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AB 2152 (González, Mark, D) This bill makes “essential local fire station projects” eligible for judicial streamlining under the California Environmental Quality Act (CEQA) only if they have a PLA with a $50,000 threshold for any construction. (Based on 05/18/2026 text) WECA Position: Oppose

05/27/26 - ASM. THIRD READING (Y:74 N:1 A:5) (P)

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AB 2329 (Fong, D) Existing law sets forth requirements for the disposal of specified surplus residential property in the City of South Pasadena. This bill would require the fair market value offered to present tenants to be based on an appraisal of the property. Support if author deletes CPR waiver on PLA projects. (Based on 04/13/2026 text) WECA Position: SIA (support if amended)

05/27/26 - ASM. THIRD READING (Y:79 N:0 A:1) (P)

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AB 2390 (Schiavo, D) Modifies provisions of the streamlined, ministerial review process established by SB 423 (Wiener), Chapter 778, Statutes of 2023, related to environmental eligibility, project modifications, and approval tolling timelines. (Based on 04/22/2026 text) WECA Position: SIA (support if amended)

05/21/26 - ASM. THIRD READING (Y:69 N:0 A:11) (P)

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AB 2484 (Alvarez, D) This bill would authorize those taxes to be imposed by a qualified voter initiative in the San Diego Metropolitan Transit System (MTS). Existing law requires MTS work to be performed with STW unless under a PLA (Based on 05/18/2026 text) WECA Position: Oppose

05/26/26 - ASM. THIRD READING (Y:46 N:21 A:13) (P)

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AB 2748 (Quirk-Silva, D) Exempts new or existing affordable housing projects for which a permit application is submitted between January 1, 2025, and December 31, 2035, from specified electric vehicle (EV) charging receptacle installation requirements in the 2025 California Green Building Standards Code, including any subsequent editions, and instead requires the affordable housing project to comply with the EV charging receptacle installation requirements in the 2022 edition of the California Green Building Standards Code.  (Based on 05/18/2026 text) WECA Position: Support

05/26/26 - ASM. THIRD READING (Y:58 N:4 A:18) (P)

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SB 909 (Smallwood-Cuevas, D) This bill would exempt contractor DIR registration fee adjustments from the APA, remove the $800 cap, and eliminate the publishing requirement. It also mandates that contractors who violate prevailing wage laws face increased penalties, with 50% of the penalties directed to the State Public Works Enforcement Fund. SB 909 would increase daily civil penalties for prevailing wage, certified payroll, and related violations. This increases further potential financial exposure for contractors, even for clerical or unintentional errors. Prime contractors remain liable for subcontractor compliance, compounding the risk.  (Based on 05/14/2026 text) WECA Position: Oppose

05/26/26 - SEN. Senate 3rd Reading (Y:29 N:7 A:4) (P)

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SB 952 (Laird, D) This bill would require the Department of Water Resources, in conducting procurement, to consider portfolio diversity, resource type, location, and hours of typical peak operation. The bill would authorize, on and after January 1, 2036, excess procurement, as defined, of eligible renewable energy resources and zero-carbon resources in one year to be applied to any subsequent year’s obligation  (Based on 05/18/2026 text) WECA Position: SIA (support if amended)

05/26/26 - SEN. Senate 3rd Reading (Y:36 N:0 A:4) (P)

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SB 954 (Blakespear, D) Bill narrows eligibility and imposes a series of new requirements to use a CEQA exemption for advanced manufacturing projects. These include additional setback standards, community benefit agreements, zero-emission backup generation mandates, stringent air limits, LEED Gold certification, and even a requirement for gubernatorial certification.  (Based on 05/14/2026 text) WECA Position: OUA (oppose unless amended)

05/27/26 - SEN. Senate 3rd Reading (Y:23 N:9 A:8) (P)

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SB 983 (Weber Pierson, D) This bill would establish a pilot program to authorize the San Diego Unified Port District to use job order contracting as a procurement method but subject to the ports PLA (Based on 04/22/2026 text) WECA Position: OUA (oppose unless amended)

05/26/26 - SEN. Senate 3rd Reading (Y:29 N:8 A:3) (P)

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SB 1145 (Grayson, D) Excludes from the Surplus Land Act dispositions for military base reuse projects and streamlines environmental review for the Concord Community Reuse Project. (Based on 04/28/2026 text) WECA Position: OUA (oppose unless amended)

05/19/26 - SEN. Senate 3rd Reading (Y:39 N:0 A:1) (P)

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SB 1154 (Reyes, D) This bill gives "best value" contracting option to community college districts for projects over $1,000,000. It includes bad safety language and STW mandates unless covered by a PLA. It mandates a report to the Legislature by January 1, 2030, on its utilization. These provisions will expire on January 1, 2031. (Based on 02/18/2026 text) WECA Position: Oppose

05/19/26 - SEN. Senate 3rd Reading (Y:29 N:9 A:2) (P)

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SB 1185 (Cortese, D) The bill extends the skilled and trained workforce (STW) requirement to facilities related to pharmaceutical research, development, and production. It mandates monthly compliance reports to the Labor Commissioner. If contractors or subcontractors violate this workforce requirement, they face civil penalties of up to $5,000 per month for a first violation and up to $10,000 per month for subsequent violations. (Based on 05/14/2026 text) WECA Position: OUA (oppose unless amended)

05/19/26 - SEN. Senate 3rd Reading (Y:29 N:7 A:4) (P)

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SB 1256 (Jones, R) Provides that an action to enforce the Subdivision Map Act cannot be commenced or sustained if it raises substantially similar issues or claims to an action related to the California Environmental Quality Act. Requires a PLA to be eligible. (Based on 04/30/2026 text) WECA Position: Oppose

05/27/26 - SEN. Senate 3rd Reading (Y:33 N:0 A:7) (P)

In This Edition:

·        Rapid Safety Progress

·        Ballot Initiative Proposed for 2028

·        Nuclear Apprenticeship Push

·        End to EEO-1 Reporting?

·        PLAs for California Sporting Venues

·        Updated Cal/OSHA Workplace Posting

·        Bills!
 

Small Construction Firms Drive Rapid Safety Progress But Still Lag Larger Peers

• A Dodge Construction Network report reveals that small construction companies with 20 or fewer employees are rapidly adopting workplace safety practices.
• These small firms increased their use of online safety training, employee assistance programs, and heat exposure tracking methods faster than their larger industry peers.
• Despite making significant progress, smaller contractors still utilize formal health and safety management practices less frequently than mid-sized and large enterprises.
• Industry researchers note that these smaller organizations require additional worker engagement, free tools, and data analysis to sustain long-term workplace protections.

READ MORE

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California Ballot Initiative Proposed for 2028 to Repeal the Top-Two Primary System

On May 8, Steve Maviglio, a Democratic political consultant and strategist known for his work on California ballot measure campaigns, filed an initiative for the 2028 ballot proposing to repeal the state’s top-two primary system. California adopted the system when voters approved Proposition 14, 53.7% to 46.3% in June 2010.

The top-two system requires all candidates to be listed on the same ballot regardless of party affiliation. The top two vote-getters advance to the general election. This makes it possible for two candidates of the same political party to win a top-two primary and face off in the general election. California is one of three states, including Alaska and Washington, that use a top-two style primary, or a variation of one, for all congressional and statewide elections.

Maviglio’s proposed constitutional amendment would authorize partisan primaries for congressional and state offices and allow any political party that holds a partisan primary to advance the top vote-getters from that primary to the general election.

To qualify for the ballot, the initiative campaign needs to collect signatures equal to 8% of the votes cast at the 2026 gubernatorial election. State law currently requires ballot initiatives to appear on general election ballots. If adopted in 2028, it would be used in the 2030 primaries.

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Bechtel, NABTU Launch Nuclear Apprenticeship Push as Power Demand Rises

Bechtel and North America’s Building Trades Unions have signed a memorandum of understanding to modernize apprenticeship programs for nuclear construction projects, including both traditional reactors and small modular reactors. The initiative comes as nuclear construction accelerates alongside rising electricity demand driven by artificial intelligence, data centers, and electrification. Bechtel said the partnership is designed to align training programs with evolving nuclear construction methods while maintaining strict safety and quality standards required on nuclear projects.

Story

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EEOC Filing Signals Likely End to EEO-1 Reporting

Since 1966, employers with 100 or more employees have been required to file the Standard Form 100, popularly known as the EEO-1 Report, annually. This form collects information on all of an employer’s work locations and the number of employees at each location by job category, sex, and race or ethnicity. Similar reports must also be filed periodically by labor unions (the EEO-3), state and local governments (the EEO-4), and public and secondary school systems (the EEO-5). On May 14, 2026, the Office of Information and Regulatory Affairs (OIRA) received from the EEOC a proposed rule titled: Rescission of EEO-1, EEO-2, EEO-3, EEO-4. EEO-5, and Reporting Requirement Under Title VII, the ADA, GINA, and the PWFA. Read More

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PLAs for California Sporting Venues

At a recent hearing of the Senate Special Committee on International Sporting Events on the Olympics, Paralympics, and World Cup Soccer, the State Building and Construction Trades Council revealed that they are well on their way to securing PLAs for all venue construction.

Jeremy Smith, on behalf of the State Building and Construction Trades Council of California, reported that:

“The LA/OC Building Trades Council looks forward to entering into negotiations with the general manager and board of Expo Park about community benefit tools such as project labor agreements or community benefits agreements, to ensure the workers creating all these needed improvements and upgrades at the Rose Bowl and Expo Park are locally based, properly skilled and trained, and that these games provide the jolt to the local economy that workers in the pavilion wage can provide.”

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Updated Cal/OSHA Workplace Posting

California employers should take note that the Cal/OSHA workplace posting titled “Safety and Health Protection on the Job” was updated in April 2026. The poster summarizes key workplace safety and health obligations under California law and must be displayed in a conspicuous location where employee notices are customarily posted. Failure to display the notice may result in penalties.

The posting reminds employers of their obligation to provide safe and healthful workplaces, comply with applicable Cal/OSHA standards, and maintain an effective written Injury and Illness Prevention Program (IIPP). It also emphasizes that employees and their authorized representatives must have access to the IIPP. Employers should confirm their IIPP is current, implemented, and supported by documentation, including records demonstrating that employees have been trained on hazards specific to their job assignments.

More

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Bills

Here’s a look at bills WECA is supporting and opposing, which had votes in the last week.

AB 1707 (Davies, R) Introduces provisions for electricians to apply for certification and exams electronically, and also renew certifications online. Additionally, it allows individuals who fail the certification exam to promptly re-register and retake it at the next available slot. (Based on  02/04/2026 text)

Votes: 03/18/26 - ASM. L. & E.  (Y:7 N:0 A:0) (P)

05/14/26 - ASM. APPR.  (Y:15 N:0 A:0) (P)

WECA Position: Support

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AB 1809 (Fong, D) This bill would make permanent job order contracting for school and community college districts. Job order contracting allows these districts to hire contractors for project management through a simplified process, provided they have a PLA that covers all public works exceeding a specified monetary threshold. (Based on 03/23/2026 text)

Votes: 03/18/26 - ASM. ED.  (Y:7 N:0 A:1) (P)

04/14/26 - ASM. HIGHER ED.  (Y:6 N:3 A:1) (P)

05/13/26 - ASM. APPR.  (Y:12 N:3 A:0) (P)

05/18/26 - ASM. THIRD READING  (Y:57 N:11 A:12) (P)

WECA Position: OUA (Oppose unless amended)

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AB 1859 (Ortega, D) This bill requires that awarding bodies or owners grant access to joint labor-management committees (JLMCs) to "investigate" prevailing wage and apprenticeship violations. These committees can take legal action if access is denied. Additionally, the bill specifies that courts may impose civil penalties for violations. (Based on 05/18/2026 text)

Votes: 03/18/26 - ASM. L. & E.  (Y:7 N:0 A:0) (P)

04/07/26 - ASM. JUD.  (Y:9 N:3 A:0) (P)

05/14/26 - ASM. APPR.  (Y:11 N:3 A:1) (P)

WECA Position: OUA (Oppose unless amended)

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AB 2152 (González, Mark, D) This bill makes “essential local fire station projects” eligible for judicial streamlining under the California Environmental Quality Act (CEQA) only if they have a PLA with a $50,000 threshold for any construction. (Based on 05/18/2026 text)

Votes: 04/13/26 - ASM. NAT. RES.  (Y:13 N:0 A:1) (P)

04/23/26 - ASM. EMERGENCY MANAGEMENT  (Y:6 N:1 A:0) (P)

05/14/26 - ASM. APPR.  (Y:11 N:0 A:4) (P)

WECA Position: Oppose

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AB 2231 (Ahrens, D) This bill would exempt from CEQA hospital projects located in the City of Emeryville or the City of Santa Clara. The bill would require, before a lead agency determines that a hospital project is exempt from CEQA, that a project applicant certify to the lead agency that the project complies with certain labor requirements, including payment of prevailing wages and use of STW. AB 2231 creates a system where workers on PLA projects are afforded fewer rights, fewer remedies, and less transparency than those on non-PLA projects. This is not a pro-worker policy—it is a carveout that replaces public enforcement with private arbitration and strips workers of long-standing statutory protections. (Based on 04/22/2026 text)

Votes: 04/20/26 - ASM. NAT. RES.  (Y:14 N:0 A:0) (P)

05/06/26 - ASM. APPR.  (Y:14 N:0 A:1) (P)

05/11/26 - ASM. THIRD READING  (Y:70 N:1 A:9) (P)

WECA Position: OUA (Oppose unless amended)

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AB 2717 (Caloza, D) This bill would require, for an outdoor advertising display authorized pursuant to the exemption and on which construction commences on or after January 1, 2027, the payment of at least the general prevailing rate of per diem wages to all construction workers employed in the execution of the project, and the use of a skilled and trained workforce to complete the project and provisions that undermine longstanding, transparent labor law enforcement in California. (Based on 05/18/2026 text)

Votes: 04/22/26 - ASM. G.O.  (Y:22 N:0 A:0) (P)

05/14/26 - ASM. APPR.  (Y:11 N:0 A:4) (P)

WECA Position: Oppose

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AB 2748 (Quirk-Silva, D) Exempts new or existing affordable housing projects for which a permit application is submitted between January 1, 2025, and December 31, 2035, from specified electric vehicle (EV) charging receptacle installation requirements in the 2025 California Green Building Standards Code, including any subsequent editions, and instead requires the affordable housing project to comply with the EV charging receptacle installation requirements in the 2022 edition of the California Green Building Standards Code. (Based on 05/18/2026 text)

Votes: 04/22/26 - ASM. H. & C.D.  (Y:8 N:0 A:4) (P)

05/14/26 - ASM. APPR.  (Y:13 N:2 A:0) (P)

WECA Position: Support

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SB 909 (Smallwood-Cuevas, D) This bill would exempt contractor DIR registration fee adjustments from the APA, remove the $800 cap, and eliminate the publishing requirement. It also mandates that contractors who violate prevailing wage laws face increased penalties, with 50% of the penalties directed to the State Public Works Enforcement Fund. SB 909 would increase daily civil penalties for prevailing wage, certified payroll, and related violations. This increases further potential financial exposure for contractors, even for clerical or unintentional errors. Prime contractors remain liable for subcontractor compliance, compounding the risk. (Based on 05/14/2026 text)

Votes: 03/25/26 - SEN. L., P.E. & R.  (Y:4 N:1 A:0) (P)

04/14/26 - SEN. JUD.  (Y:11 N:1 A:1) (P)

04/27/26 - SEN. APPR.  (Y:7 N:0 A:0) (P)

05/14/26 - SEN. APPR.  (Y:5 N:2 A:0) (P)

WECA Position: OUA (Oppose unless amended)

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SB 954 (Blakespear, D) Bill narrows eligibility and imposes a series of new requirements to use a CEQA exemption for advanced manufacturing projects. These include additional setback standards, community benefit agreements, zero-emission backup generation mandates, stringent air limits, LEED Gold certification, and even a requirement for gubernatorial certification. (Based on 05/14/2026 text)

Votes: 04/15/26 - SEN. E.Q.  (Y:5 N:2 A:0) (P)

04/22/26 - SEN. L., P.E. & R.  (Y:4 N:1 A:0) (P)

05/04/26 - SEN. APPR.  (Y:7 N:0 A:0) (P)

05/14/26 - SEN. APPR.  (Y:5 N:2 A:0) (P)

WECA Position: OUA (Oppose unless amended)

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SB 1145 (Grayson, D) Excludes from the Surplus Land Act dispositions for military base reuse projects and streamlines environmental review for the Concord Community Reuse Project. (Based on 04/28/2026 text)

Votes: 04/15/26 - SEN. L. GOV.  (Y:7 N:0 A:0) (P)

04/22/26 - SEN. E.Q.  (Y:7 N:0 A:0) (P)

05/11/26 - SEN. APPR.  (Y:7 N:0 A:0) (P)

05/14/26 - SEN. APPR.  (Y:7 N:0 A:0) (P)

05/19/26 - SEN. Senate 3rd Reading  (Y:39 N:0 A:1) (P)

WECA Position: OUA (Oppose unless amended)

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SB 1154 (Reyes, D) This bill gives "best value" contracting option to community college districts for projects over $1,000,000. It includes bad safety language and STW mandates unless covered by a PLA. It mandates a report to the Legislature by January 1, 2030, on its utilization. These provisions will expire on January 1, 2031. (Based on 02/18/2026 text)

Votes: 04/08/26 - SEN. ED.  (Y:5 N:2 A:0) (P)

05/19/26 - SEN. Senate 3rd Reading  (Y:29 N:9 A:2) (P)

WECA Position: Oppose

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SB 1165 (Caballero, D) SB 1165 strengthens tax enforcement by authorizing the California Department of Tax and Fee Administration (CDTFA) to coordinate with the Contractors State License Board (CSLB) to ensure contractors settle unpaid taxes. (Based on 04/16/2026 text)

Votes: 04/13/26 - SEN. B., P. & E.D.  (Y:11 N:0 A:0) (P)

04/22/26 - SEN. REV. & TAX  (Y:5 N:0 A:0) (P)

05/07/26 - SEN. Consent Calendar 2nd  (Y:36 N:0 A:4) (P)

WECA Position: Support

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SB 1185 (Cortese, D) The bill extends the skilled and trained workforce (STW) requirement to facilities related to pharmaceutical research, development, and production. It mandates monthly compliance reports to the Labor Commissioner. If contractors or subcontractors violate this workforce requirement, they face civil penalties of up to $5,000 per month for a first violation and up to $10,000 per month for subsequent violations. (Based on 05/14/2026 text)

Votes: 04/15/26 - SEN. L., P.E. & R.  (Y:4 N:1 A:0) (P)

05/04/26 - SEN. APPR.  (Y:7 N:0 A:0) (P)

05/14/26 - SEN. APPR.  (Y:6 N:1 A:0) (P)

05/19/26 - SEN. Senate 3rd Reading  (Y:29 N:7 A:4) (P)

WECA Position: OUA (Oppose unless amended)

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SB 1241 (Smallwood-Cuevas, D) The new bill broadens the circumstances in which skilled and trained workforce requirements apply and includes additional changes. It prohibits the waiver of penalties if monthly compliance reports are incomplete or false. The bill also considers whether a contractor submitted and followed a compliance plan when determining penalties. Additionally, a contractor or subcontractor found guilty of material misrepresentation becomes ineligible for public works contracts. The Commissioner must investigate complaints about workforce violations from labor-management committees. (Based on  05/14/2026 text)

Votes: 03/25/26 - SEN. L., P.E. & R.  (Y:4 N:1 A:0) (P)

04/13/26 - SEN. APPR.  (Y:7 N:0 A:0) (P)

05/14/26 - SEN. APPR.  (Y:6 N:1 A:0) (P)

WECA Position: OUA (Oppose unless amended)

In This Edition:

·        Impact of Cemex

·        Senate Leader Drinks Kool-Aid

·        Gallego Follows Patel’s Model

·        Hope for Diablo?

·        Trump PLA Policy Wins

·        Utah Water Emergency

·        No Chips for You!

Cemex Construction Materials Pacific, LLC v. NLRB

The recent Ninth Circuit decision in Cemex Construction Materials Pacific, LLC v. NLRB is a major development for WECA contractors in California because it left in place a new, more union-friendly framework for organizing workplaces. The court refused to weigh in on the new National Labor Relations Board’s “Cemex” standard, which allows a union to demand recognition based on signed authorization cards—without first going through a traditional secret-ballot election. If an employer refuses that demand, they must promptly petition for an election, but even minor unfair labor practice findings during that process can result in the Board ordering the employer to recognize and bargain with the union anyway.

For contractors, the practical effect is a much narrower margin for error during any organizing effort. Routine management communications, missteps by supervisors, or allegations of interference, whether intentional or not, can now carry far greater consequences. Under the Cemex framework, those issues can effectively bypass an election entirely and trigger mandatory union recognition. This raises the stakes significantly compared to the prior standard, where elections were the default mechanism and remedies for employer violations were less likely to result in automatic recognition.

In California, a state which is already a highly regulated and labor-friendly environment, the decision adds another layer of risk for open-shop contractors. Construction firms, which often rely on decentralized jobsite supervision and rapidly shifting crews, may be especially vulnerable to claims of unfair labor practices during organizing campaigns. The ruling underscores the need for heightened training, careful communication protocols, and early legal guidance whenever organizing activity is suspected.

In short, the Ninth Circuit’s failure to overturn the NLRB’s Cemex standard shifts the balance of power toward unions by making it easier to secure recognition and harder for employers to rely on elections as a safeguard. For WECA contractors, it means that preparation, compliance, and disciplined responses to organizing efforts are now more critical than ever.

The implications of the Cemex decision could be significantly amplified if Congress enacts the Faster Labor Contracts Act (FLCA) (H.R. 5408 / S. 844). As discussed, Cemex lowers the threshold for union recognition by allowing card-check demands to trigger either rapid elections or, in the event of alleged employer missteps, mandatory recognition. FLCA would pick up where Cemex leaves off—imposing strict timelines for first-contract negotiations and, if no agreement is reached, requiring binding arbitration to set the terms of a collective bargaining agreement.

Together, these policies would create a compressed and high-risk pathway for non-union contractors: from organizing drive, to recognition, to a government-imposed contract in a matter of months. For contractors operating in California’s already labor-intensive regulatory environment, this combination would significantly reduce the ability to rely on traditional safeguards such as secret-ballot elections and extended good-faith bargaining. Instead, even minor alleged unfair labor practices could accelerate the process toward both union recognition and binding contract terms determined by a third party.

While FLCA faces meaningful legislative hurdles, particularly the 60-vote threshold in the U.S. Senate, it remains a live issue. A successful discharge petition in the House could force a floor vote, and bipartisan sponsorship suggests continued momentum. For open-shop contractors, the takeaway is clear: the evolving federal labor landscape is trending toward faster organizing timelines and reduced employer flexibility, making proactive compliance, supervisor training, and early-response strategies more important than ever.

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SB 1256: Judicial Reform or Special Interest Bargaining Chip?

California has no shortage of obstacles to housing development. Between environmental review, local opposition, financing challenges, and litigation, even modest residential projects can spend years trapped in procedural limbo before a single foundation is poured. Senate Bill 1256 by State Senator Brian Jones was originally presented as an effort to address one narrow but increasingly common abuse of the development process: repetitive litigation.

The bill seeks to prevent plaintiffs from bringing a second lawsuit under the Subdivision Map Act after substantially similar claims have already been litigated under the California Environmental Quality Act (CEQA). According to the author, some opponents exhaust every CEQA claim against a housing project and then pivot to Map Act litigation to continue delaying or obstructing construction. SB 1256 attempts to establish that once those claims have been fully adjudicated, substantially similar challenges cannot simply be repackaged and relitigated under a different statute.

On its face, that is a legitimate public policy discussion. California’s courts are overloaded, housing projects routinely face years of delay, and duplicative litigation can become less about environmental protection and more about attrition. Reports surrounding the Harmony Grove Village South development in San Diego County, which is widely believed to be the catalyst for the bill, illustrate the frustration project applicants experience when litigation appears effectively endless.

Unfortunately, recent amendments to SB 1256 took the bill in an entirely different direction.

Rather than establishing a uniform legal standard applicable to all qualifying projects, the bill now conditions those litigation protections on the adoption of a Project Labor Agreement (PLA). In other words, a developer may only receive protection from duplicative litigation if they agree to a union-only labor framework for the project.

That changes the bill from a judicial efficiency measure into something far more troubling: a legislative exchange in which access to legal certainty is conditioned on granting special-interest economic concessions.

There is simply no logical connection between repetitive litigation and mandatory PLAs. A project either deserves protection from duplicative lawsuits because repetitive litigation is abusive, or it does not. The legal principle should apply equally regardless of whether a project uses union labor, merit shop contractors, or a mix of both.

Instead, SB 1256 creates a two-tiered system. Developers willing to sign a PLA receive procedural advantages unavailable to developers who choose open competition. That should concern anyone who believes California’s laws should operate neutrally rather than reward politically favored labor structures.

That outcome directly conflicts with California’s stated goals of expanding housing production and increasing opportunities for small and emerging contractors. At a time when policymakers routinely discuss affordability, workforce shortages, and supplier diversity, SB 1256 runs counter to this by tying legal protections to exclusionary labor mandates.

Perhaps most concerning is the precedent this establishes. If the Legislature can condition protection from duplicative litigation on a PLA today, what comes next? Will expedited permitting, CEQA streamlining, tax incentives, financing assistance, or other legal protections similarly become contingent upon adopting favored labor agreements?

Judicial reforms should be based on sound legal principles, not leveraged as bargaining chips for special interests.

If duplicative CEQA and Map Act litigation is truly a statewide problem, then the solution should apply equally to all projects meeting the legal standard. California should not create a system where developers must effectively purchase access to legal certainty by surrendering control over workforce decisions.

WECA supports fair and open competition. We support efforts to reduce abusive litigation tactics that unnecessarily delay housing construction. But those reforms must apply uniformly, not only to projects willing to grant unions exclusive control over construction labor.

SB 1256 began as a discussion about judicial efficiency. It is rapidly becoming a case study in how even broadly supported reforms in Sacramento can be transformed into vehicles for expanding PLA mandates.

WECA members are encouraged to contact Jones and share their concerns.

·        Sacramento: (916) 651-4040

·        Escondido: (760) 796-4655

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Ruben Gallego’s CODEL Antics Raise Eyebrows

(A CODEL is a COngressional DELegation, which is an official trip taken by Members of Congress to meet with leaders outside of Washington, both in the United States and abroad.) Multiple sources said that the Arizona Democrat’s behavior on a government trip to Colombia last summer raised concerns among U.S. officials. Embassy staff in Bogotá became aware of what they believed was a credible threat to his life and dispatched security personnel to meet Gallego and pick him up after dinner. After a discussion, Gallego decided to stay out, eventually walking to a nearby nightclub where he stayed until the wee hours.

At the club, Gallego and his chief of staff texted multiple embassy staff members, inviting them to join. At least one female embassy employee told her State Department colleagues about the outreach, Reese reports. It is unclear whether any staff took Gallego and his aide up on their offer, and there are no allegations that Gallego engaged in inappropriate behavior with any embassy staff member.

The next morning, Gallego did not show up for a scheduled bus that was set to take members of the traveling party to the airport for their return flight. The chief of staff had to get a copy of Gallego’s hotel key and get him from his room.

Gallego’s response: The senator “coordinated closely with embassy security throughout the trip, including on the evening in question, and followed all security guidance,” a spokesperson said. “While at dinner at the conclusion of a successful congressional delegation trip, the Senator and his Chief of Staff invited Embassy staff to join them, a common way to recognize the work of those who support these visits.”

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Watt’s Next?

A coalition of business, labor, and energy groups announced the creation of Diablo Canyon 2045, an alliance of 25 organizations that hopes to push legislators to extend the Diablo Canyon Power Plant’s operations beyond its current 2030 limit to 2045. The announcement signals that Diablo Canyon supporters intend to pressure the California Legislature to pass a bill this year to extend operations. The coalition includes the Bay Area Council and a bevy of other regional business groups, the International Brotherhood of Electrical Workers local 1245, which represents workers at the plant, and pro-nuclear advocacy groups like Mothers for Nuclear and the Clean Air Task Force.

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Court Affirms Biden-Era PLA Mandate

Former President Joe Biden’s project labor agreement mandate has won another battle, further cementing it as policy even after President Donald Trump’s administration took office.

The U.S. Court of Appeals for the Eleventh Circuit on Tuesday affirmed the denial of a preliminary injunction to halt the PLA mandate, which impacts projects receiving $35 million or more in federal funding. Associated Builders and Contractors and its Florida First Coast chapter filed the appeal for an injunction.

In the decision, Chief Judge William Pryor said the appeal would likely fail because the Office of Management and Budget issued a memo confirming that the Biden-era order would remain in effect, even under the Trump administration.

ABC has long opposed the requirement of PLAs, saying the mandate unfairly locks out nonunion builders from winning federal contracts. In a statement shared with Construction Dive, ABC President and CEO Michael Bellaman said the group will continue to fight against the mandate.

“At no point, under any administration, have federal contractors ever been prevented from voluntarily entering into a PLA when such an agreement makes sense for their workforce,” Bellaman said. “Every qualified contractor should have the opportunity to build America.”

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Cox Says Utah Drought Declaration is “Coming fairly soon.”

Utah’s water landscape doesn’t look good. After an abysmally low winter for snow, 100% of the state is already in drought. Plus, negotiations on the future of the Colorado River are still going nowhere. Gov. Spencer Cox thinks that grim reality could actually lead to more cooperation on the future of the Colorado River. One of the main sticking points is that nobody at the table could agree on what would happen in a worst-case scenario. Story

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Worker Microchipping Laws Enacted in Dozen States

At least 11 states have laws in effect prohibiting employers from requiring employees to be implanted with a microchip or other permanent identification marker as a condition of employment (Damn! Another great HR idea squashed!), according to LexisNexis® data. Washington enacted a worker microchipping ban (HB 2303) this year that takes effect on June 11, and three other states considered bills dealing with worker microchipping. Story