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Feb. 18, 2026

Staffing companies aren't 'laborers' under California's construction payment laws

The California Court of Appeal recently held that staffing companies are not "laborers" under Civil Code section 8024 and cannot claim against public works payment bonds, while confirming that prevailing parties are entitled to attorneys' fees regardless of whether the bond is for a state or local project.

Garret D. Murai

Partner
Nomos LLP

Email: gmurai@nomosllp.com

Garret is the editor of the California Construction Law Blog at www.calconstructionlawblog.com.

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Staffing companies aren't 'laborers' under California's construction payment laws
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Increasingly, some of the world's largest companies own or produce very little of what they sell. Uber owns no vehicles. Airbnb owns no real estate. Amazon has no inventory. And Facebook creates no content. Even companies in traditional sectors like construction--which sells skilled labor--are revising their operating playbooks and relying on staffing companies instead.

In K&S Staffing Solutions, Inc. v. Western Surety Company, 98 Cal.App.5th 647 (2024), the Court...

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