Local public employees: memoranda of understanding.
What changed between versions
The bill now amends Sections 3501 and 3506.5 of, and adds Section 3502.2 to, the Government Code (Meyers-Milias-Brown Act), expanding its scope from a single technical fix in the Political Reform Act to comprehensive local public employment labor relations reform.
A statewide concern finding is added, declaring that the new labor provisions apply to all cities including charter cities, overriding potential municipal affairs protections.
New Section 3502.2 requires that any memorandum of understanding between a public agency and a recognized employee organization entered into on or after January 1, 2026 must include, upon request: (1) a progressive discipline system granting due process including a just cause standard, (2) a grievance procedure culminating in compulsory final and binding arbitration, and (3) reasonable paid time off for employee representatives investigating and participating in grievances.
New definitions added to Section 3501: 'progressive discipline' is defined as written preventative, corrective, or disciplinary action providing notice of expectations and opportunity to correct performance; 'due process' is defined as a system giving employees notice of factual basis for discipline, Skelly rights (per the 1975 California Supreme Court case), right to appeal, and reasonable opportunity to respond before discipline is imposed.
Section 3506.5 is amended to specify that knowingly providing inaccurate financial information to a recognized employee organization, or refusing or failing to include the required Section 3502.2 provisions in a memorandum of understanding, constitutes a refusal or failure to meet and negotiate in good faith.
A no-reimbursement provision is added stating that no state reimbursement will be made for costs mandated by this act under Part 7 of Division 4 of Title 2 of the Government Code, though local agencies may still pursue available remedies to seek reimbursement.
The new memorandum of understanding requirements apply to agreements entered into on or after January 1, 2026. If a current MOU does not address these provisions, the public agency must promptly participate in collective bargaining to adopt them as an addendum upon request.