republic-os/legislation/us/states/ca/20232024/ab-2696.md

---
type: "Bill"
title: "Labor-related liabilities: direct contractor and subcontractor."
description: "Existing law requires, for contracts entered into on or after January 1, 2022, a direct contractor making or taking a contract in the state for the erection, construction, alteration, or repair of a building, structure, or other private work, to assume, and be liable for, any debt owed to a wage claimant or third party on the wage claimant's behalf, incurred by a subcontractor at any tier acting under, by, or for the direct contractor for the wage claimant's performance of labor included in the subject of the contract between the direct contractor and the owner. Existing law extends, for contracts entered into on or after January 1, 2022, the direct contractor's liability to penalties, liquidated damages, and interest owed by the subcontractor on account of the performance of the labor, except as provided. Existing law authorizes a joint labor-management cooperation committee, established as specified, to bring an action in any court of competent jurisdiction against a direct contractor or subcontractor at any tier to enforce liability for any unpaid wage, fringe or other benefit payment or contribution, penalties or liquidated damages, and interest owed by the subcontractor on account of the performance of the labor on a private work, as provided."
jurisdiction: "us/states/ca"
legislature: "California Legislature"
session: "20232024"
identifier: "AB 2696"
citation: "California AB 2696 (20232024)"
classification: ["bill"]
subjects: ["Labor-related liabilities", "direct contractor and subcontractor"]
status: "enacted"
primary_sponsors: ["Rendon"]
version_count: 7
action_count: 29
vote_count: 10
first_action: "2024-02-14"
last_action: "2024-09-27"
source: "openstates"
source_identifier: "ocd-bill/bab8144e-7819-444c-8915-799a1c923b02"
source_url: "http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202320240AB2696"
source_hash: "0d86c9aee0030cdaa46aa46eee1bc441a602bfc46db9cc148521aa5bf8b8a1ba"
vintage: "2026-07-01"
source_snapshot: "https://data.openstates.org/daily/2026-07-01/public.pgdump"
retrieved_at: "2026-07-06"
confidence: "reported"
tags: ["legislation", "bill", "us-ca"]
---

# California AB 2696 (20232024) — Labor-related liabilities: direct contractor and subcontractor.

Existing law requires, for contracts entered into on or after January 1, 2022, a direct contractor making or taking a contract in the state for the erection, construction, alteration, or repair of a building, structure, or other private work, to assume, and be liable for, any debt owed to a wage claimant or third party on the wage claimant's behalf, incurred by a subcontractor at any tier acting under, by, or for the direct contractor for the wage claimant's performance of labor included in the subject of the contract between the direct contractor and the owner. Existing law extends, for contracts entered into on or after January 1, 2022, the direct contractor's liability to penalties, liquidated damages, and interest owed by the subcontractor on account of the performance of the labor, except as provided. Existing law authorizes a joint labor-management cooperation committee, established as specified, to bring an action in any court of competent jurisdiction against a direct contractor or subcontractor at any tier to enforce liability for any unpaid wage, fringe or other benefit payment or contribution, penalties or liquidated damages, and interest owed by the subcontractor on account of the performance of the labor on a private work, as provided.

## Version chain

The bill's text revisions, in order — the diff chain from filing to enrollment.

1. **02/14/24 - Introduced** (filed) — [source](https://leginfo.legislature.ca.gov/faces/billPdf.xhtml?bill_id=202320240AB2696&version=20230AB269699INT)
2. **03/11/24 - Amended Assembly** (committee substitute) — [source](https://leginfo.legislature.ca.gov/faces/billPdf.xhtml?bill_id=202320240AB2696&version=20230AB269698AMD)
3. **04/24/24 - Amended Assembly** (committee substitute) — [source](https://leginfo.legislature.ca.gov/faces/billPdf.xhtml?bill_id=202320240AB2696&version=20230AB269697AMD)
4. **06/10/24 - Amended Senate** (committee substitute) — [source](https://leginfo.legislature.ca.gov/faces/billPdf.xhtml?bill_id=202320240AB2696&version=20230AB269696AMD)
5. **09/27/24 - Chaptered** (committee substitute) — [source](https://leginfo.legislature.ca.gov/faces/billPdf.xhtml?bill_id=202320240AB2696&version=20230AB269694CHP)
6. **AB2696** (committee substitute) — [source](http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202320240AB2696)
7. **08/31/24 - Enrolled** (enrolled) — [source](https://leginfo.legislature.ca.gov/faces/billPdf.xhtml?bill_id=202320240AB2696&version=20230AB269695ENR)

## Votes

- Do pass and be re-referred to the Committee on [Judiciary] — **7–0** (pass) · lower
- Do pass. — **14–1** (pass) · lower
- Placed on suspense file — **7–0** (pass) · upper
- AB 2696 Rendon Assembly Third Reading — **69–0** (pass) · lower
- Do pass — **5–2** (pass) · upper
- 3rd Reading AB2696 Rendon By Atkins — **33–5** (pass) · upper
- Do pass and be re-referred to the Committee on [Appropriations] — **11–1** (pass) · lower
- Do pass, but first be re-referred to the Committee on [Appropriations] — **11–0** (pass) · upper
- Do pass, but first be re-referred to the Committee on [Judiciary] — **4–0** (pass) · upper
- AB 2696 Rendon Concurrence in Senate Amendments — **71–0** (pass) · lower

## Sponsors

- Rendon — primary (person)

## Timeline

The legislative action history — every referral, reading, and vote.

- **2024-02-14** Read first time. To print. `reading-1`
- **2024-02-15** From printer. May be heard in committee March 16.
- **2024-03-11** Referred to Coms. on L. & E. and JUD. `referral-committee`
- **2024-03-11** From committee chair, with author's amendments: Amend, and re-refer to Com. on L. & E. Read second time and amended. `amendment-introduction, amendment-passage, reading-1, reading-2`
- **2024-03-12** Re-referred to Com. on L. & E. `referral-committee`
- **2024-04-04** From committee: Do pass and re-refer to Com. on JUD. (Ayes 7. Noes 0.) (April 3). Re-referred to Com. on JUD. `committee-passage, committee-passage-favorable, referral-committee`
- **2024-04-24** From committee chair, with author's amendments: Amend, and re-refer to Com. on JUD. Read second time and amended. `amendment-introduction, amendment-passage, reading-1, reading-2`
- **2024-04-25** Re-referred to Com. on JUD. `referral-committee`
- **2024-05-01** From committee: Do pass and re-refer to Com. on APPR. (Ayes 11. Noes 1.) (April 30). Re-referred to Com. on APPR. `committee-passage, committee-passage-favorable, referral-committee`
- **2024-05-15** In committee: Set, first hearing. Referred to APPR. suspense file. `referral-committee`
- **2024-05-16** Joint Rule 62(a), file notice suspended. (Page 5215.)
- **2024-05-16** From committee: Do pass. (Ayes 14. Noes 1.) (May 16). `committee-passage, committee-passage-favorable`
- **2024-05-20** Read second time. Ordered to third reading. `reading-1, reading-2`
- **2024-05-22** Read third time. Passed. Ordered to the Senate. (Ayes 69. Noes 0. Page 5499.) `passage, reading-1, reading-3`
- **2024-05-23** In Senate. Read first time. To Com. on RLS. for assignment. `reading-1`
- **2024-06-05** Referred to Coms. on L., P.E. & R., JUD. and APPR. `referral-committee`
- **2024-06-10** From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on L., P.E. & R. `amendment-introduction, amendment-passage, reading-1, reading-2, referral-committee`
- **2024-06-19** From committee: Do pass and re-refer to Com. on JUD. (Ayes 4. Noes 0.) (June 19). Re-referred to Com. on JUD. `committee-passage, committee-passage-favorable, referral-committee`
- **2024-07-03** From committee: Do pass and re-refer to Com. on APPR. (Ayes 11. Noes 0.) (July 2). Re-referred to Com. on APPR. `committee-passage, committee-passage-favorable, referral-committee`
- **2024-08-05** In committee: Referred to APPR suspense file. `referral-committee`
- **2024-08-15** From committee: Do pass. (Ayes 5. Noes 2.) (August 15). `committee-passage, committee-passage-favorable`
- **2024-08-19** Read second time. Ordered to third reading. `reading-1, reading-2`
- **2024-08-27** Read third time. Passed. Ordered to the Assembly. (Ayes 32. Noes 5.). `passage, reading-1, reading-3`
- **2024-08-28** In Assembly. Concurrence in Senate amendments pending. May be considered on or after August 30 pursuant to Assembly Rule 77.
- **2024-08-28** Assembly Rule 77 suspended.
- **2024-08-28** Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 71. Noes 0.). `amendment-passage, committee-passage-favorable`
- **2024-09-09** Enrolled and presented to the Governor at 3:30 p.m.
- **2024-09-27** Approved by the Governor. `executive-signature`
- **2024-09-27** Chaptered by Secretary of State - Chapter 734, Statutes of 2024. `became-law`

## Source

OpenStates / OpenCivicData bulk snapshot [2026-07-01](https://data.openstates.org/daily/2026-07-01/public.pgdump); origin `ocd-bill/bab8144e-7819-444c-8915-799a1c923b02`. Confidence: reported (aggregated from official California legislature records).