Governor Brown Signs Two CAL SMACNA Supported Bills: PAGA Lawsuits (AB 1654); and AB 1701 Clean-UP (AB 1565)

PAGA Exemption for CBAs — Governor Brown signed AB 1654 (Rubio, D), supported by CAL SMACNA, to strengthen and uphold the sanctity of the collective bargaining agreement (CBA) when it comes to settling grievances. This bill exempts construction industry employees in a CBA from also using the Private Attorneys General Act (PAGA) to resolve disputes with their employer in a civil action.

By expressly waiving the requirements of PAGA in clear and unambiguous terms, it is acknowledged that collective bargaining agreements are a more desirable method for the settlement of grievances as they provide a well-developed procedure for the resolution of disputes. The bill also states that the exception to PAGA will expire on the date the collective bargaining agreement expires, or on January 1, 2028, whichever is earlier.

To view AB 1654 click here, and to view a summary of the bill click here.

AB 1701 Clean-Up — Governor Brown also signed AB 1565 (Thurmond, D), as a subtle clean-up to last year’s AB 1701. AB 1565 provides that for any contract entered into on or after January 1, 2019, the direct contractor must specify in its contract with the subcontractor the specific payroll documents and information that the direct contractor will require from the subcontractor prior to issuing payment for work completed. This change will help reduce unnecessary delay of payment from GCs to Subs.

To view AB 1565 click here, and to view a summary of the bill click here.

If you have any questions pertaining to these bills please contact our office at 916-363-7460.