Assembly committee advances AB 5 38 to require awarding bodies to seek certified payroll records

Assemblymember Berman presented AB 5 38 to the Assembly Labor and Employment Committee on March 19, 2025, and the committee voted to refer the bill to the Appropriations Committee.

The bill would require an awarding body on a public works project to make a timely request to the contractor for certified payroll records when a member of the public makes a lawful request. The proposal does not impose new liability on the awarding body if the contractor fails to provide records; instead, it would require the awarding body to notify the Division of Labor Standards Enforcement when a contractor does not comply.

Assemblymember Berman said, "I'm proud to present AB 5 38, a bill to continue the legislature's commitment to prevailing wage and ensuring that workers are paid what they are rightfully owed. Certified payroll record certified payroll records are essential to ensure compliance with prevailing wage requirements on public works projects." Matt Kremens, director of the California Nevada Conference of Operating Engineers and a sponsor, told the committee the bill "seeks to provide some statutory clarity related to the existing process that the public goes through to receive copies of certified payroll records." He described the measure as a narrow fix to make clear that awarding bodies must at least attempt to obtain records from contractors.

Supporters at the hearing included representatives of building trades and labor organizations: Martin Bindiol spoke on behalf of the California State Association of Electrical Workers, the California State Pipe Trades Council and the Western States Council of Sheet Metal Workers; Elmer Lizardi testified for the California Federation of Labor Unions; and Mike West spoke for the State Building Trades.

Opponents raised concerns about added burdens on local governments and privacy and funding risks for affordable housing providers. Eric Lawyer, representing the California State Association of Counties, said his organization was "in respectful opposition to the bill" because it would place a duty on counties, cities and special districts that he argued would be better placed with the Division of Labor Standards Enforcement. Graciela Castillo Cranks, speaking for the California Housing Consortium, expressed concerns about privacy and redaction of personally identifiable employee information in certified payroll records and said the bill’s structure could put affordable housing providers at financial risk if contractors fail to comply.

Committee members discussed the bill’s practical effects on local jurisdictions and affordable-housing providers. One member said awarding bodies routinely communicate with contractors on large public works projects and expressed support for a statutory requirement to request payrolls. After discussion, the committee moved the bill to Appropriations by a roll call that recorded Ortega, Flora, Chen, El Hawari, Cora, Lee and Ward as voting yes.

The bill now moves to the Assembly Appropriations Committee for further consideration.