New Law in Maywood Will Force Builders to Disclose Labor Violations

Maywood, CA — In a win for organized labor, the Maywood City Council unanimously passed an ordinance that will force contractors working on large-scale projects in the city to disclose any past labor violations during the permitting process.

The ordinance, passed by unanimous vote on Feb. 26, requires that contractors working or planning to work on large projects disclose any state or federal labor violations, including wage theft, from the past five years during the permitting process. Large projects are defined as those involving at least 20 residential units or 20,000 square feet of commercial or industrial space.

Additionally, they must report any penalties paid to government agencies related to such violations. These disclosures would include both pending and final decisions about labor violations.

The ordinance follows concerns raised by the Western States Regional Council of Carpenters (WSRCC) regarding labor violations in the construction industry.

Chief among WSRCC’s concerns is wage theft. A letter sent by the union to Councilmember Frank Garcia, a WSRCC member, states: “Wage theft contributes to an unfair advantage for unscrupulous employers, perpetuating a decline in labor standards across the entire construction sector."

“Urgent action is required to… ensure the rights and well-being of construction workers,” the letter reads.

The letter also cites a study by the UC Berkeley Labor Center that found 39% of families of construction workers are enrolled in one or more safety net programs at a cost of nearly $28 billion per year.

Garcia reiterated that the measure is intended to protect workers in Maywood. 

“The labor standard is so bad in construction and I would hate to see that stuff happen in our community,” Garcia said. “This (ordinance) is great for us and the area.”

Salvador George, a representative of The Western States Regional Council of Carpenters, voiced his organization’s support for the ordinance. George says his responsibilities as a union representative take him to project sites where he frequently encounters worker abuse.

“I can tell you, first hand, the exploitation that we see on projects, even residential projects, even some projects being built by faith-based organizations, the exploitation that is being done there to our immigrant community, it’s difficult to describe,” George said.

Under the new rules, contractors must provide a list of all subcontractors involved in the project, along with proof of workers' compensation insurance, business licenses, and tax identification numbers. If a contractor cannot provide a complete and valid list of subcontractors at the time of the permit application, they must submit the necessary information within a reasonable timeframe after the permit is issued but before any work begins.

Contractors must also update the city within 72 hours if any changes occur, such as hiring new subcontractors. Failure to comply with these requirements—including providing all necessary subcontractor information before beginning work or failing to update records within the required timeframe—could result in penalties, permit revocation, or a stop-work order.

The new regulations will take effect 30 days after passage.