SB 597: Labor-related liabilities: direct contractor and subcontractor.

This bill amends labor laws to increase liability for contractors and subcontractors. Starting January 1, 2026, a direct contractor will be liable for any indebtedness related to labor performance, including fringe and benefit contributions, unless they make contribution payments by joint check. The definition of a direct contractor is expanded to include anyone with a direct contractual relationship with an owner or entity engaging contractors and subcontractors on behalf of the owner. The bill also expands the scope of the liability provision to include housing developments that meet specified requirements. A joint labor-management cooperation committee will have the standing to sue contractors for failure to make health care expenditures for employees. This change aims to improve labor standards and protect workers' rights.