News
New CA Court of Appeal Case Helps Determine Cessation of Work in the Absence of Recorded Notice
In California, a prime contractor is required, under Civil Code section 9550, to post a payment bond for any public works project larger than $25,000. A payment bond guarantees that funds will be available to pay for labor or materials furnished on a project. Since mechanics liens cannot be asserted against public property, public works subcontractors have few options for recovery if the prime contractor fails to pay. In many cases, a subcontractor’s recourse for collection of sums due is to file a stop
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Alston & Bird - Prepare for California's Ban on 'Stay or Pay' Contracts
Our Labor & Employment Group explains how California’s AB 692 will make “stay or pay” employment contract provisions illegal for agreements entered into on or after January 1, 2026. Employers can no longer require workers to repay training costs or pay penalties if they leave a job earlyAny employment contract with prohibited provisions after the effective date will be voidAffected employees can sue for substantial damages and legal costs California's AB 692 makes “stay or pay” employment contracts
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Dinsmore & Shohl - California's 2026 Employment Law Shake-Up: What Employers Need to Know
Starting in 2026, California employers face sweeping changes that redefine workplace compliance. From expanded employee rights and pay transparency to stricter rules on repayment agreements and gratuity enforcement, these new laws require immediate attention. We’ve compiled a detailed list of the key updates and deadlines so you can prepare now and avoid costly missteps. Senate Bill 294 Effective January 1, 2026, SB 294 establishes the Workplace Know Your Rights Act. Under this law, employers are
Getting Paid for Costs of the Government Shutdown
Now that Congress has passed a budget ending the government shutdown, contractors are left wondering how and when they will be compensated for costs incurred due to the government shutdown. This post explores how government contractors can recover not only the cost of work performed during the government shutdown, but also additional costs arising specifically from the shutdown. In order to get paid for impacts, contractors must understand: Shutdown Basics and Delayed PaymentPartially Funded
Accounting for Tariffs in Construction Contracts
President Donald Trump has implemented his “America First” trade policy throughout 2025 by implementing a sweeping set of tariffs aimed at reducing U.S. reliance on foreign goods. The tariffs, which have fluctuated since January, have included threats of a 145% tariff on goods imported from China, a 50% tariff on steel and aluminum, and a 10% universal import tariff on all goods entering the U.S. With the proposed tariffs constantly fluctuating, the impact has quickly rippled through the construction
Conditional Logic - What Contractors Should Be Aware Of
Conditional Logic - Contractors should be aware that notice of default can be an express condition precedent to a surety's performance bond obligation. The importance of timely and effective communication on construction projects cannot be overstated. This is particularly important in the context of a contractor seeking to preserve its rights as obligee on a performance bond when the underlying principal has failed to perform. Although contractors and sureties are key partners on bonded projects, they
California’s October State Law Updates: What Employers Need to Know
Throughout October 2025, California Governor Gavin Newsom signed multiple employment-related Bills into law. These new measures address a wide range of workplace-related matters, including regulations aimed at the use of artificial intelligence, updates on paid leave, and amendments to mediation procedures. While some of these Bills will be subject to legal challenges that delay or block their application, many took effect immediately or will become effective on January 1, 2026. Accordingly, California
Workers Comp Insurance Fraud: It costs more than you think
For more information, download this printable brochure here or contact: Marin County District Attorney's Office Attn: Insurance Fraud Unit 3501 Civic Center Drive, Room 130 San Rafael, CA 94903 415.473.6450co.marin.ca.us/da
New Law Changes in 2025 Affecting Licensees, Applicants and Stakeholders
Sacramento, CA – The Contractors State License Board (CSLB) is advising licensees, applicants, and other stakeholders of key legislative updates following the implementation ofSenate Bill 1455 (Ashby, 2024). This bill, effective January 1, 2025, extends the Board’s “sunset” date from 2025 to 2029 and makes other changes to the law, which are described below. Key Provisions of SB 1455 1. Public Works Project LicensingWhat’s New? Awarding authorities must now ensure that public works project bidders