Synopsis: Effective January 1, 2026, Assembly Bill 538 (Berman) (“AB 538”) expands accountability and enforcement measures for public records requests made to awarding bodies for certified payroll records (“CPRs”) on public works projects.

Summary: Prior to AB 538, Labor Code section 1776 required that each contractor and subcontractor on a public works project keep accurate payroll records showing certain information about each worker employed by that contractor or subcontractor on the project. Contractors are required to electronically upload their CPRs directly to the Department of Industrial Relations. Requests for CPRs could be made via awarding bodies or the Division of Labor Standards Enforcement (“DLSE”), but awarding bodies were not specifically required to inform the DLSE of non-compliance by contractors.

Starting on January 1, 2026, AB 538 adds additional requirements for awarding bodies, including community college and school districts, as follows:

1. if the district is not in possession of the requested CPRs, the district must obtain the CPRs from the contractor and make them available to the requestor;
2. the contractor must provide the CPRs within 10 days of notice of the request and the district must notify the DLSE if a contractor does not meet this 10-day deadline; and,
3. upon request by the DLSE, the district must withhold certain penalties from progress payments due to the contractor’s or subcontractor’s failure to meet this 10-day deadline.

Districts should develop procedures for responding to public inquiries for CPRs pursuant to AB 538 and California Code of Regulations, title 8, section 16400.

This bulletin is for educational purposes only and does not constitute legal advice. However, DWK attorneys in our Construction group are available to assist your district with any questions you may have regarding the impacts of AB 538 or if you receive a request for certified payroll records. Please do not hesitate to contact a DWK attorney in our Construction practice group for guidance