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Subcommittee reports HB238 substitute to bolster enforcement against wage theft; business groups urge caution
Summary
HB238, an anti–wage‑theft bill with construction‑specific provisions and broader enforcement powers for the attorney general, was reported with a substitute 5–2 after testimony from labor, legal aid and construction stakeholders; business groups cautioned the substitute removes protections for 'good actors.'
Chair Lopez presented HB238 and a substitute that retains construction‑contract provisions while moving up effective dates, broadening definitions of wages and expanding enforcement authority — including allowing the attorney general to bring civil actions for wage violations. The substitute also clarifies record‑keeping requirements and expands who may file complaints.
Advocates including the Legal Aid Justice Center, SEIU and building trades praised the bill as a set of "common sense best practices" to recover stolen wages and address misclassification. They argued the substitute would empower state agencies to pursue strategic enforcement against bad actors and protect responsible employers.
Representatives of the Chamber of Commerce, Associated Builders and Contractors and trade associations opposed aspects of the substitute, saying it removes prior protections for compliant contractors, creates misalignment with the Fair Labor Standards Act and could elevate damages and liabilities. Construction stakeholders asked for clarifying language.
The committee accepted the substitute and reported the bill on a 5–2 vote; the record shows both technical and policy disputes will likely continue through later committee stages.
