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Board directs county staff to draft responsible contracting ordinance to curb wage theft
Summary
After extensive public testimony from trades and unions, the Santa Cruz County Board voted 4-1 to direct staff to draft a local responsible-contractor ordinance requiring verification of significant unpaid wage judgments and return with a proposal by the second meeting in October 2026.
Santa Cruz County supervisors on Tuesday directed county staff to draft a local ordinance intended to reduce wage theft by making certain contractors ineligible to do business on county-permitted projects if they have recent, substantial unpaid wage judgments.
Supervisor Justin Cummings, who introduced the item, said local workers and families are harmed when contractors underpay or misclassify employees. "Local control is what's really going to make the difference in this community," a presenter said, arguing a county standard would help deter repeat offenders.
Trade representatives told the board that state enforcement of wage claims has been slow and that many contractors with multiple wage judgments can continue to bid on work. In testimony they cited local examples of unpaid-judgment cases and urged the board to adopt a proactive standard: require contractors to verify they have no judgments above a threshold (an example discussed was $10,000) at the start and end of covered projects.
Board members debated practical issues: how to verify claims, how to avoid penalizing small local projects, and whether restricting bidders could reduce competition on projects. Chair and several supervisors recommended a short drafting window with staff and building trades to refine exemptions, thresholds and enforcement procedures.
After a failed substitute motion for extended staff research, the board voted 4-1 to direct staff and the county's building/construction trades to draft an ordinance for return by the second meeting in October 2026. The motion allows the county to develop complementary contracting tools and to consider exemptions for small local projects.
What happens next: staff will work with the building and construction trades and county departments to draft ordinance language, clarify verification processes, and return to the board with the proposed ordinance and any additional contracting recommendations.
Actions: Board directed staff to draft an ordinance and return by October 2026; vote 4-1.
