Existing law prohibits an agency from entering into an agreement with a contractor for construction, janitorial, or security guard services if the entity knows or should know that the agreement does not include funds sufficient to allow the contractor to comply with all applicable local, state, and federal laws or regulations governing the labor or services to be provided. If the entity has a written contract that includes all of the provisions outlined in the statute, it will create a rebuttable presumption that it did not enter into a contract with insufficient funds to allow the vendor to comply with all applicable laws or regulations governing the contracted services. The agreement must include vendor contact information, a description of the services, dates the services will be provided, the vendor’s EIN, vehicle liability insurance and workers’ compensation insurance policy numbers, the vendor’s insurance carriers’ contact information, the VIN for any vehicle used in the services, address of any housing provided to the workers providing the services, the number of workers employed to provide the services, specified information related to the workers’ wages and commissions, information related to any independent contractors utilized to perform the services and a list of the current local, state, and federal contractor license identification numbers that the independent contractors are required to have under local, state, or federal laws or regulations. The contract must be signed and dated by both parties and kept for four years after the termination of the contract.
Assembly Bill 2754 (AB 2754) creates an additional requirement for an agreement with a contractor for construction, janitorial, or security guard services when the contractor will utilize independent contractors. In addition to the above, AB 2754 also requires that entity and contractor attach a copy of any agreements executed by the independent contractors to the services agreement.
(AB 2754 amends sections 2810 and 2810.4 of the Labor Code)