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Senate committee advances bill to standardize annualization of fringe benefits on public works
Summary
The Senate Labor Committee voted to pass AB 889 to the appropriations committee after testimony from construction unions and limited opposition, aiming to align California law with federal annualization rules and tighten enforcement against benefit underreporting on public works projects.
The California Senate Committee on Labor, Public Employment and Retirement on Monday voted to pass AB 889 to the Committee on Appropriations, a bill that would require employers to annualize non-hourly fringe benefit payments for workers on public works projects and strengthen enforcement tools for the labor commissioner.
AB 889, introduced to the committee by an Assembly member presenting the bill, would conform state law to federal Department of Labor rules by specifying that payments an employer makes that are not paid directly to a worker — for example, monthly health plan premiums or quarterly…
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