Committee continues labor-compliance bond ordinance after broad labor support

The Land & Transportation Committee took up a proposed ordinance (Article 33) that would require project owners and covered contractors on certain residential construction projects to post a labor-compliance bond and to condition release of the bond on verification of labor-standards compliance.

Sponsor Supervisor Matt Haney framed the ordinance as a targeted tool to reduce wage theft in construction, saying the measure is modeled on similar laws enacted in Berkeley, Morgan Hill and Milpitas and relies on the state Wage Theft Protection Act as a foundation. Haney cited state studies and said enforcement resources are limited: testimony to the Little Hoover Commission and other assessments were referenced to quantify the problem.

Presenters included Cesar Sanchez (NorCal Carpenters labor compliance investigator) and Alex Landsberg (electrical industry) who described field investigations into unpaid wages and said a wage-performance bond designed in coordination with the city attorney’s office would be sized to project scale, held for a 90-day period and would permit payment to workers where wage claims are found.

Union and labor-affiliated speakers—including representatives from the San Francisco Building and Construction Trades, UFCW, NorCal Carpenters, Sprinkler Fitters and others—gave lengthy public testimony describing wage-theft incidents and urging adoption. Several presenters suggested technical edits (for example, collective-bargaining waivers and coverage clarifications) that the sponsor said would be incorporated.

Given the pending amendments, Chair Melgar moved to continue the ordinance to the committee’s April 4 meeting; the motion passed on a roll call of Paskin, Preston and Melgar voting "aye."