California Codes, Business and Professions Code - BPC, Division 3 — Professions and Vocations Generally, Chapter 9 — Contractors, Article 2 — Application of Chapter, Section 7035

(a) A specialty contractor shall not enter into a contract for the performance of work on the same single project or undertaking with more than one subcontractor in the same license classification as the specialty contractor offering the contract, unless either of the following requirements are satisfied:

(1) The subcontractor employs persons who are classified as employees to perform work in that license classification on the single project or undertaking.

(2) The specialty contractor is a signatory to a bona fide collective bargaining agreement that covers the type of work being performed on the single project or undertaking and addresses the issue of subcontracting or subletting.

(b) A violation of subdivision (a) shall constitute a cause for disciplinary action.

(c) For purposes of this section, the following definitions shall apply:

(1) “Employs persons who are classified as employees” means the subcontractor classifies the individuals as employees rather than as independent contractors for purposes of the Labor Code.

(2) “Specialty contractor” has the same meaning as in Section 7058.