Governor Signs Industry Sponsored Legislation to Protect Contractors

Governor Newsom has signed AB 830 to protect contractors who use a “Responsible Managing Employee” (RME) as the qualifier on their contractor license. The legislation clarifies that an RME qualifier on a contractor license is a valid qualifier and that the requirements for “supervision and control” on a construction project may be accomplished by the RME either directly, or indirectly by supervising designated employees.

AB 830 was necessary in response to recent litigation; D.A. McCosker Construction Co. v. California Department of Water Resources. In the case, a judge in the Superior Court of Sacramento found that because the contractor was working on multiple projects, the RME could not be satisfactorily involved in the California Department of Water Resources project, and as such, the contractor was operating as an unlicensed contractor.  By the judge determining independently what “supervision and control” means and declaring the contractor unlicensed, he placed the contractor in a position of being disgorged of all funds paid on the project.  As a result of the Court’s decision, it became possible for an RME’s status as a qualifier on a license to no longer be determined by regulation, but instead by individual judges.

As a practical matter, contractors and subcontractors who perform work on large public and private construction projects have multiple jobs underway at any given time.  Each project is assigned a project manager who is responsible for managing each individual project, whereas the RME is often an employee responsible for managing the operations of the licensee.  Pursuant to the Judge’s ruling, it would be unclear how a contractor whose license is held by an RME could continue perform on multiple jobs without being placed in jeopardy of being found to be unlicensed.

AB 830 address this issue long term, by placing in state law, clarity that an RME is a valid qualifier on a license and can provide “supervision and control” either directly, or indirectly by supervising designated employees.

 

This content was provided by WPCCA professional counsel and is for general informational purposes only. Readers should contact their own professional counsel for company specific matters in the relevant jurisdiction.

Recent Posts

WPCCA AI for Construction Safety: Field1st Demo

Discover how artificial intelligence can support job-site safety in this session with Eric Fishman, Vice President of Field1st. Explore how contractors are approaching AI adoption, including the practical challenges of putting new tools into the hands of foremen and field…

October 26, 2026

WPCCA Cybersecurity Tips & Tricks Webinar

Join us for a practical webinar on cybersecurity for contractors, presented by Travis Strong of Rea Information Services. Learn about common cybersecurity mistakes, emerging AI-related risks, and essential security measures to help protect your business from ransomware, data exposure, and…

October 20, 2026

WPCCA Cal/OSHA Compliance & Regulatory Updates Webinar (Presented by Littler)

Join us for an overview of Cal/OSHA compliance requirements, inspections, citations, and recent developments affecting California employers. The presentation will cover employer responsibilities, the inspection and citation process, penalties, and options for contesting citations. The session will also highlight California’s…

September 25, 2026

WPCCA CA Employer Guide to AI Webinar Presented by Littler

The AI boom has arrived, and so have the regulators. AI is no longer the Wild West. As state legislatures across the country enact new laws governing artificial intelligence, businesses face a rapidly expanding patchwork of compliance obligations across industries….

August 25, 2026

WPCCA Claude AI Training Series

Join us for a four-part virtual Claude training series designed specifically for contractors. Led by AI consultant Kelly Stephens, this practical, construction-focused series will take participants from the fundamentals of Claude and AI safety to prompting for everyday work, building…

August 25, 2026
MORE STORIES