San Diego Begins Enforcement of Contractor Transparency Rules
A new law requiring contractors and subcontractors on San Diego city projects to increase transparency and comply with more accountability is now in effect as of January 1st. The new law was approved by the City Council in August of 2022.
San Diego officials implemented the new rules in an effort to combat wage theft and crack down on contractors circumventing city rules. Contractors are now tasked with disclosing more information about previous labor law violations and licensing.
The required information includes; state contractor licenses, city business licenses, workers comp. policy information, and any labor enforcement activity against the contractor. This includes legal action prior to the application as well as pending litigation.
The information must be completed for each and every contractor and subcontractor on a project. The law brings subcontractors who previously were able to stay off the radar into the fold. The law also stipulates that contractors and subcontractors who are working on public land must submit proof of specialized certifications to do work.
“Wage theft, labor trafficking and other illegal practices are rife in the industry, which is one of the reasons a policy like this is even necessary,” Carol Kim, leader of San Diego Building & Construction Trades Council, said Tuesday. “Ensuring that businesses are complying with basic local, state and federal laws is a very good thing for both workers and consumers alike.”
Some contractors contend that the process will slow work but City officials say this is not the case- city software has been updated connecting it to the State contractor licensing board database, streamlining the process.
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