Governor Newsom Signs SB 61 Into Law

We are proud to announce that Governor Gavin Newsom signed SB 61 (Cortese) into law, UCON-sponsored legislation that establishes a 5% cap on retention for private construction projects in California.

Effective January 1, 2026, the new law will apply to contracts for private works of improvement entered into on or after that date.

SB 61 represents a significant victory for contractors statewide, directly addressing the chronic cash flow challenges caused by excessive retention withholding on private construction. By aligning private sector retention practices with the existing 5% cap on public works, this law brings greater financial stability and predictability to California’s construction industry.

Our dedicated Government Relations and lobbying team remains laser focused on improving the business environment for union-signatory contractors across the state and advancing the industry as a whole. We’re proud to have delivered this significant victory for our members.

A special thank you goes to Senator Dave Cortese and his dedicated staff for their leadership and tireless commitment to advancing this critical reform.

For additional information, or questions, contact Gus Flores, Director of Government Relations.