Congressional Democrats Re-Introduce PRO Act Last Wednesday, House and Senate Democrats re-introduced the “Protecting the Right to Organize Act” (or PRO Act), a bill that would rewrite much of the country’s private-sector labor laws by banning Right-to-Work states, require federal government-appointed arbitrators to mandate first contracts, effectively outlaw independent contracting, among other dramatic changes. Although it may only be a political stunt, as Teamsters’ President Sean O’Brien indicated during his podcast interview with Marianne Williamson, the legislation is being led this year by Sen. Bernie Sanders (I-Vt.) and Rep. Bobby Scott (D-Va.), reported HuffPost. O’Brien explains the “inside baseball” being played inside Washington, explaining to Williamson how the “PRO Act was going to be used as a political pawn” (by Democrats). O’Brien then explains how the Teamsters are working with Democrats and Republicans to enact a “version” of the PRO Act and how his union avoids using the NLRB. The bill has passed the House of Representatives twice in the past, however, it has never reached the Senate Floor for a vote.

This year, with both the House and the Senate under Republican control, it is uncertain whether the bill would even pass the House, let alone reach the Senate Floor. In the unlikely event it were to pass both chambers, though, it would likely face a presidential veto.

On Tuesday, though, a bipartisan Senate bill was introduced that, if passed, would implement a key component of the PRO Act called binding arbitration. Given its bipartisanship and presuming the PRO Act fails, it is possible that the bipartisan binding arbitration bill may get support from both sides of the political divide. If that were to happen and the Faster Labor Contracts Act were to pass, it is unclear whether President Trump would veto it.

Predictably, employer representatives, including Associated Builders and Contractors and the Associated General Contractors of America, have long opposed the PRO Act, declaring it anti-competitive and claiming it may force workers to join a union when they don’t wish to.

“While the PRO Act purports to help workers, it actually strips away many of their rights and privacies while expanding opportunities to coerce law-abiding employers, thereby hurting the economy and upsetting a delicate balance of rights and restrictions established by the National Labor Relations Board, the courts, and Congress,” Brian Turmail, AGC’s vice president of public affairs and workforce, told Construction Dive. “If enacted, this measure will harm workers, undermine the economy and end decades of labor stability.” In a statement, Kristen Swearingen, ABC’s Vice President of Legislative and Political Affairs, called the PRO Act and its provisions harmful. Story

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California Union Pushes Arizona Jobs Out For more than 30 years, Axon, a public safety technology company that makes Tasers and bodycams, has called Scottsdale, AZ home. Founded by Chaparral High School graduate Rick Smith, the company is planning a major expansion of its corporate headquarters as part of a development of 74 acres near Hayden and the 101. The new investment would be approximately $1.3 billion. But an out-of-state labor group, Worker Power, the political arm of the California-based UniteHere, was lurking, determined to disrupt the job-creation project. Story

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Study Shows Workers Want Better Communication, Psychological Safety

• While workplace safety remains a top priority for employees, significant gaps persist between employee expectations and employer efforts, according to a new study by risk management provider AlertMedia.
• The report surveyed more than 2,000 full-time U.S. employees to understand their perceptions of safety and to provide employers with data and insights into how they can better deliver against employees’ safety expectations.
• Among the key findings, while nearly all employees (96%) believe physical safety at work is essential, more than half (56%) do not feel completely safe at work.
• Nearly all (95%) consider mental health important, yet 15% believe their employer ignores it altogether.

Read More

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Legislation

Licensure

SB 291 – Grayson | The CSLB wants to reverse the industry-supported elimination of workers’ compensation exemptions for construction contractors.

SB 282 – Wiener | Requires the California Energy Commission, by 2027, to establish a statewide certification program for licensed contractors of residential heat pump water heaters and heat pump heating, ventilation, and air conditioning (HVAC) systems to obtain a heat pump installation certification, and would require the commission to create a state training program.

Apprenticeship:

AB 296 – Davies | Would require schools to hold at least one career fair every year, which would include information on apprenticeships.

Contracts:

AB 483 – Irwin | Would create new contact requirements for installment contracts that could make home improvement loans disappear.

AB 559 – Berman | Would clarify that ADU construction falls under HIC requirements, controlling progress payments. The bill is in reaction to recent cases in which consumers lost hundreds of thousands on ADUs that were never delivered.

AB 1327 – Aguiar-Curry | Would permit a notice of cancellation of a home improvement or home solicitation contract to be conveyed to the seller orally by telephone.

SB 61 – Cortese | Will limit retention on private construction projects to 5% of the contract value.

SB 517 – Niello | Will require a home improvement contract with a subcontractor performing more than 50% of the total estimated project cost to contain the subcontractor's name and contact information.

Public Works:

AB 963 – Petrie-Norris | Requires contractors and developers to give unions extensive documents about development projects, putting contractors and their employees at risk.

AB 1198 – Haney | Will require contractors to pay new prevailing wage rates whenever DIR changes them.

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Lori Chavez-DeRemer Confirmed as Labor Secretary Several unions welcomed news of Chavez-DeRemer’s confirmation on Monday evening. The Amalgamated Transit Union called the former congresswoman from Oregon “a strong advocate for working people and unions.” Sean O’Brien, president of the International Brotherhood of Teamsters, said Chavez-DeRemer will do “an excellent job” and “protect the working class.” Story

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Solar-Utilities Reporting, Guidance, and Education (SURGE) provides some essential resources to help solar contractors better understand prevailing wage requirements as they submit copies of certified payroll records to the SURGE Compliance Portal per AB 2143 and PUC 769.2.

Prevailing Wage/Labor Compliance Training The California Department of Industrial Relations (DIR) has announced its series of upcoming trainings for 2025. These educational seminars across the state provide an overview of prevailing wage and apprenticeship standards compliance and public works enforcement. The first webinar event is on Thursday, March 13, 2025 from 8:30 AM – 4:00 PM. To explore all of these upcoming events, please visit the following link: DIR Upcoming Trainings

DIR Distribution List To stay current with the DIR prevailing wage training and other information and resources, you can sign up for email notices. Please use the following link to sign up on the DIR’s website. Sign Up for DIR Email Notices

SURGE Upcoming Events Additionally, SURGE has upcoming events for solar contractors to navigate the SURGE Compliance Portal. Visit the SURGE Happenings website for upcoming event information.

• March 25, 2025: CPUC SURGE Event: What is AB 2143/PUC 769.2? How to Stay in Compliance - Register Here
• April 16, 2025: SURGE & DIR Informational Webinar (registration coming soon)

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30 states have adopted English as an official language—11 through ballot measures—since 1920 On March 1, President Donald Trump (R) issued an executive order "[designating] English as the official language of the United States." While the federal government had never established an official national language before, 30 states have designated English as their official language. Three of the 30 states—Alaska, Hawaii, and South Dakota—also recognize some Indigenous languages as co-official languages. Nebraska was the first state to adopt an official language by ballot measure in 1920. Oklahoma is the most recent state to vote on a measure, with voters approving State Question 751 in 2010. Story

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District Supes Denounce Taxpayers Association School districts pushing bond measures have long coveted endorsements from the San Diego County Taxpayers Association. But district superintendents started getting sick of the process the Taxpayers Association demanded. They raised concerns to the media before Taxpayers Association CEO Haney Hong resigned late last week. Story

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Rivas Purges Members from Assembly Committee Posts A group of Republican lawmakers—and at least one Democrat—have touched a nerve with Assembly Speaker Robert Rivas (D-Hollister). In a late Friday night announcement, Rivas booted five Republican lawmakers from key committee posts. Story

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Out Of Energy: California paused a $290 million home energy rebate program on Monday, citing the uncertainty created by President Donald Trump's decision to freeze funding for climate-related programs, reports POLITICO. The California Energy Commission said it will stop accepting applications for the program, which uses federal money to help homeowners replace broken or inefficient heating or cooling systems with more efficient heat pumps. However, the commission said it would continue to honor rebates for homeowners whose applications have already been approved. The commission said in a statement that the program will be paused "until the Trump Administration provides additional information on the funding for this program."

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Law On Legislators’ Sponsored Travel Falls Short Following a CalMatters investigation, California’s campaign finance watchdog agency concluded this month that a law — meant to make transparent who is paying for California legislators’ sponsored travel — is falling short. In 2023, CalMatters revealed that a 2015 law requiring trip organizers to annually disclose their major donors had been used only twice in seven years — despite interest groups paying for millions of dollars in travel for lawmakers during that time. The Fair Political Practices Commission’s audit, triggered by CalMatters’ reporting, recommends simplifying disclosure requirements to cover more interest groups that take lawmakers to policy conferences and on international study tours — a change that can only be made by those very same legislators.

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My View

Huntington Beach Councilman Tony Strickland Leads in Special Election for State Senate On Tuesday, Feb. 25, voters in California’s 36th State Senate District special election and an early tally of ballots in Orange and Los Angeles counties showed Republican Tony Strickland with a strong lead. As of the latest tally, Strickland maintained an early 51% lead over Democrat Jimmy Pham. Pham is an attorney and serves on Westminster’s traffic commission. Strickland, a Huntington Beach councilmember and former mayor, is eyeing a return to the California Legislature, where he has already served for a decade — first as an Assembly member from 1998 to 2004, then as a state senator from 2008 to 2012 — representing parts of Ventura and Santa Barbara counties.

“Tony Strickland has always been a great supporter of free enterprise and open competition,” said WECA’s Southern California Government Affairs Representative Dave Everett (pictured with Strickland). “Whether it is in the California Legislature or at the local level in Huntington Beach, merit shop contractors know they can count on Tony Strickland.” The special election was triggered after former State Senator Janet Nguyen vacated the seat to join the Orange County Board of Supervisors. Nguyen endorsed Strickland to succeed her in the Senate. The race for the 36th State Senate District, which includes communities in Los Angeles and Orange counties, could be decided outright if a candidate secures more than 50% of the vote in the primary, meaning the runoff election scheduled for April would be canceled.

Despite Strickland’s strong early lead, Orange County Democratic Party Chair Florice Hoffman said she is encouraged by the initial results. “It looks like Jimmy Pham will be in a runoff in this Republican district,” she said. Pham ran for the 70th Assembly District seat in 2024 but was defeated by Republican Assemblymember Tri Ta.  The 36th Senate District stretches from Seal Beach to San Clemente along the Orange County coast to a small portion of Los Angeles County. It includes portions of Buena Park, Cypress, Fountain Valley, Garden Grove, La Palma, Los Alamitos, Stanton, and Westminster in Orange County and Artesia, Cerritos, and Hawaiian Gardens in Los Angeles County. Republicans make up the district's most significant share of registered voters at 37.11%. Democrats follow with 33.93%, while 22.61% of voters are registered with no party preference. Whoever is elected in Tuesday’s primary or the general election in April will serve a term that runs through Dec. 7, 2026.



Huntington Beach Councilman Tony Strickland (left) and WECA Southern California Government Affairs Representative Dave Everett (right)

Stan Ellis (R) Wins Special Election for Assembly District 32 In a decisive victory, Bakersfield-area businessman Stan Ellis (whom WECA supported) has won the special election for California's 32nd Assembly District. Ellis, a Republican, secured 64% of the vote, avoiding a runoff and succeeding Vince Fong, who vacated the seat after winning a congressional election last year. Stan Ellis is a farmer, local businessman, and community member with deep roots in the Central Valley. Ellis's campaign focused on common-sense leadership, advocating for less regulation, safer communities, and economic opportunities. "This victory is a clear message that our communities want leadership that puts working families and our future first," Ellis stated in his victory email.

The district, which includes parts of Visalia and Bakersfield, has been without representation since June 2024. Ellis's win brings a renewed focus on addressing the critical needs of the Central Valley, and he expressed eagerness to begin his work in Sacramento.

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AZ’s Ciscomani Expresses Reservations Over House Republican Budget Resolution Southern Arizona U.S. Rep. Juan Ciscomani (R) is expressing reservations over a Republican budget blueprint that could result in significant cost shifts from the federal government to Arizona and negatively affect the state’s Medicaid program, known as AHCCCS, or the Arizona Health Care Cost Containment System. Story.

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Plaintiffs Are Responsible for Commencing Court-Ordered Arbitration The California Court of Appeal held that after the employer-defendant successfully moved to compel arbitration of the plaintiffs’ employment-related claims, the employer-defendant did not waive its right to arbitration by failing to commence arbitration. The fact that the employer was the only party that “wanted” arbitration was irrelevant. The arbitration agreement required the plaintiffs to initiate arbitration, which they failed to do. Michelle Arzate, et al. v. ACE American Insurance Company, Case No. B336829. Story

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Big day for crypto: The US Senate’s first subcommittee on digital asset policy convened this week. Punchbowl got a sneak peek at the opening remarks from the panel’s top Democrat Sen. Ruben Gallego (Ariz.). The Arizona Democrat, whose election bid was backed by the crypto super PAC network Fairshake, will say crypto “presents both extraordinary opportunities and significant challenges.” Gallego will also stress the need for “robust oversight,” including a call to ensure crypto is “not used to circumvent existing laws on money laundering, tax evasion, or illicit financing.” Gallego also wants to focus on “encouraging productive and useful innovation to everyday Americans. The growth of things like ‘meme coins’ on everything from Trump to DOGE to Peanut the Squirrel are about flashy headlines and trending on social media, not about helping traditionally un- and under-banked communities gain access to the financial system.” [Punchbowl]

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Labor Nominee Gets a Boost Democratic Sen. Maggie Hassan will vote to advance Lori Chavez-DeRemer through the Senate HELP Committee on Thursday, significantly boosting the chances that Trump’s Labor secretary nominee will get confirmed. Hassan is the first Democrat on the HELP Committee to say she will vote for Chavez-DeRemer, making up for potential opposition from panel member Rand Paul. [Politico]

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What is Happening on the Labor Front in DC? Kristen Swearingen Explains. A lot is going on in Washington, DC, these days. In this episode of Labor Relations Radio, Kristen Swearingen, Vice President, Legislative & Political Affairs at the Associated Builders & Contractors, Inc. and spokesperson for the Coalition for a Democratic Workplace, joins host Peter List to discuss some of the issues, including the re-introduction of the PRO Act, Sen. Josh Hawley’s “PRO Act-Lite” framework, as well as President Trump’s nominee to head the Department of Labor, Lori Chavez-DeRemer. Listen

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Bill Introductions in the California Legislature Over the past decade, the California Legislature and its 120 legislators have introduced between 1,900 and 2,600 bills per year, each year of the 2-year legislative session, by the February introduction deadline. Fewer than 50 additional bills get introduced after the deadline (e.g., due to a rule waiver or a bill introduced by a committee, which are not subject to the introduction deadline). The 2023 California Legislative Session saw more introductions than usual, the highest number in over a decade. The 2024 Session returned those introduction numbers to more normal levels. Story

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Guess Who Stymies Housing Construction A passel of recent California laws was supposed to supercharge the construction of desperately needed housing. According to YIMBY Law, they haven’t even come close. One California law was supposed to flip defunct strip malls across California into apartment-lined corridors.

Another was designed to turn under-used church parking lots into fonts of new affordable housing.

A third would, according to supporters and opponents alike, “end single-family zoning as we know it.” Fast-forward to 2025 and this spate of recent California laws, and others like it intended to supercharge the construction of desperately needed housing, have had “limited to no impact on the state’s housing supply.”

That damning conclusion comes from a surprising source: A new report by YIMBY Law, a pro-development nonprofit that would very much like to see these laws work.

“It’s grim,” said Sonja Trauss, executive director of YIMBY Law. Though she acknowledged some of the laws are still new, she blamed their early ineffectiveness on the legislative process which saddled these bills with unworkable requirements and glaring loopholes.

“Everybody wants a piece,” she said. “The pieces taken out during the process wind up derailing the initial concept.”

What are these requirements and loopholes that have prevented these laws from succeeding? Maybe not surprisingly, they are the frequent objects of critique by YIMBY Law and the Yes in My Backyard movement more generally.

One is the inclusion of requirements that developers only hire union-affiliated workers or pay their workers higher wages. Story

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Acting NLRB General Counsel Rescinds Controversial Memoranda On February 14, 2025, National Labor Relations Board Acting General Counsel William Cowen issued Memorandum 25-05, rescinding more than a dozen policy memos issued by his predecessor. Cowen cited an unsustainable backlog of cases as the primary motivation for the rescission. Cowen also signaled that he plans to publish new guidance to replace some of the rescinded memos. Others may be abandoned altogether. Learn More

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CSLB Newsletter Please enjoy the Winter 2025 edition of the California Licensed Contractor Newsletter – a quarterly newsletter from the Contractors State License Board.

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Santa Barbara County Supervisors Are Planning to Give Themselves a 48% Raise On February 25, 2025, the Santa Barbara County Supervisors are planning to give themselves a 48% raise. You read that right. According to Andy Caldwell, Executive Director of the government watchdog COLAB (Coalition of Labor, Agriculture and Business), that means they will be making $171, 309 per year for a part-time job. They are currently paid $115,000. Story

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Hawley Sells Moreno on Government Control of Private Contracts Punchbowl News has reported that Senator Bernie Moreno (R-OH) is cosponsoring one of the bills based on Senator Josh Hawley’s (R-MO) recently released legislative framework implementing a “new direction” for Republican labor policy, which ironically appears to consist entirely of provisions stolen from Senator Bernie Sanders’ (D-VT) Protecting the Right to Organize (PRO) Act (S 567, HR 20, 118th Congress) and Senator Markey’s bill that brings the warehouse sector under government control and creates a new subagency at the Department of Labor (Warehouse Worker Protection Act, S 5208, 118th Congress). The framework is expected to be broken down into five pieces, and Moreno is reportedly cosponsoring the legislation that would implement government control over management-union contract negotiations.

The legislation, the Faster Labor Contracts Act, requires employers and unions to begin negotiating collective bargaining agreements within 10 days after a union wins a representation election and execute their agreement within months. Consequences for failing to meet this arbitrary timeline is mandatory arbitration, where government-appointed arbitrators set terms for the first contract. [Employment Policy Network]

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Electricity Causes 150 Workplace Deaths Each Year Electricity continues to be one of the leading causes of workplace fatalities and injuries in the U.S., according to new workplace safety statistics from ESFI.

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Mayor and San Diego Supervisor Candidate John McCann Visits WECA San Diego With less than 6 weeks until the April 8, 2025, special election for San Diego County Supervisor, WECA was proud to host Chula Vista Mayor John McCann for a tour and a discussion about workforce development this week at WECA’s San Diego Training Center. Joined by WECA Board President and CDM Electric Vice President Dru Wells, Bill Baber, and Dave Everett from WECA’s Government Affairs team, Mayor McCann sat down with WECA to discuss workforce development, public works projects, and apprenticeship opportunities.

Mayor John McCann is running for the open San Diego County Supervisor seat for District 1. With two Democrats and two Republicans on the San Diego County Board of Supervisors, this election will decide which party sets the agenda for the county’s budget and services. A special election will occur on April 8th, with a possible runoff in July if no candidate wins 50% +1 votes. Three Democrats — San Diego City Councilmember Vivian Moreno, Imperial Beach Mayor Paloma Aguirre, and Chula Vista Councilmember Carolina Chavez — and one Republican, Chula Vista Mayor John McCann, have confirmed they are running. Vivian Moreno voted for a discriminatory PLA on all City of San Diego construction, as did Carolina Chavez for the City of Chula Vista. And while the Laborers Union has endorsed Imperial Beach Mayor Paloma Aguirre, she has not yet imposed a PLA on Imperial Beach. Mayor John McCann, of course, voted against the PLA in the City of Chula Vista.

On the tour of our San Diego facility this week with Mayor McCann, WECA highlighted how apprenticeship presents great opportunities for students, and how beneficial it is for young adults to begin adulthood debt-free. We also discussed some of the discrimination and cost increases involved with PLAs. Thank you, Mayor McCann, for taking time out of your busy schedule to learn more about our members and students. It was a critical discussion on the region’s workforce development needs as well as some of the challenges facing the construction industry in California.

Do Voters Want OSHA to Go Away? Rep. Andy Biggs, R-Ariz., last month proposed the Nullify Occupational Safety and Health Administration Act, which would abolish the Occupational Safety and Health Act of 1970 that created OSHA. Biggs introduced similar legislation in 2021, which stalled out after it was referred to the House Committee on Education and Labor. “OSHA’s existence is yet another example of the federal government creating agencies to address issues that are more appropriately handled by state governments and private employers,” Biggs said in a statement in 2021. Perhaps someone should remind Biggs that only 22 states (including Arizona) have OSHA-approved state plans. I guess workers in those 28 other States are SOL. Story

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Trump's Labor Secretary Pick Is a Union Favorite—And a Threat to Right-to-Work Laws Given the salacious allegations against some of President Donald Trump's cabinet nominations, it is understandable how Secretary of Labor nominee Lori Chavez-DeRemer has mostly flown under the radar. But from a policy perspective, Chavez-DeRemer's voting record is concerning—especially for those who value federalism and coercion-free workplaces. For most of her political career, Chavez-DeRemer, who lost her Oregon congressional seat in November, has been a polarizing figure. The daughter of a Teamster, her soft spot for unions puts her at odds with her Republican colleagues and right-of-center groups. In a letter to the Senate, National Right to Work Committee president Mark Mix wrote that Chavez-DeRemer's judgment is "clearly compromised" and that she "must be rejected as the Secretary of Labor."

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DOD Halts Plans on Construction Projects The Department of Defense has ordered its contracting officers to halt the use of project labor agreements on “large-scale construction projects,” according to a memo published by Construction Dive. The notice, dated Feb. 7, says contracting officers shall remove PLA requirements created by former President Joe Biden that apply to projects receiving $35 million or more in federal funds. As part of the memo—signed by John M. Tenaglia, principal director of defense pricing, contracting and acquisition policy for the DOD—contracting officers were ordered to amend solicitations for federal contracts to remove PLA requirements.

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California’s First-in-Nation COVID-19 Regulation Finally Rides Off Into the Sunset (Mostly…) Nearly all the substantive provisions of Cal/OSHA’s non-emergency COVID-19 regulation expired on Monday, February 3, 2025. The event marked a significant end point to the regulatory journey that began on November 19, 2020, when California became the first jurisdiction to enact general workplace regulations specifically addressing COVID-19. California’s detailed COVID-19 requirements remained in effect much longer than those of any other jurisdiction, most of which already expired more than a year ago. Despite the expiration of nearly all the COVID-19 non-emergency regulations, employers should remain attentive to their ongoing workplace safety duties. More

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Legislation

AB 76 Alvarez (D) Current law prescribes requirements for the disposal of surplus land by a local agency. Current law defines terms for these purposes. Current law defines “exempt surplus land” to mean, among other things, land that is subject to a sectional planning area, as described, and meets specified requirements, including that at least 25% of the units are dedicated to lower income households, as specified, and that is developed at an average density of at least 10 units per acre, calculated with respect to the entire sectional planning area. This bill would change those requirements so that at least 25% of units that are not designated for students, faculty, or staff of an academic institution must be dedicated to lower income households, as specified, and that the land must be developed at an average density of at least 10 units per acre, calculated with respect to the entire sectional planning area and inclusive of housing designated for students, faculty, and staff of an academic institution. WECA Position: SIA (Support if Amended)

AB 231 Ta (R) Would, for taxable years beginning on or after January 1, 2026, and before January 1, 2031, allow a credit against the Personal Income Tax Law and the Corporation Tax Law taxes to a qualified taxpayer in an amount equal to 40% of the qualified wages paid or incurred to a qualified employee employed during the taxable year. The bill would define a qualified employee for this purpose to mean an individual that, among other things, has been convicted of a felony, as provided, and has a hiring date not more than one year after the date the individual was convicted or was released from prison. WECA Position: Support

AB 296 Davies (R) Current law provides for the establishment of apprenticeship programs in various trades, to be approved by the Chief of the Division of Apprenticeship Standards within the Department of Industrial Relations in any trade in the state or in a city or trade area whenever the apprentice training needs justify the establishment. Current law requires a school district or school to notify each apprenticeship program in the same county as the school district or school of a career or college fair it is planning to hold, as specified. Current law provides that the Legislature encourages school districts and schools to host apprenticeship fair events, as provided. This bill would delete the above-specified provision regarding the Legislature’s encouragement to school districts and schools and would, instead, require school districts and schools to host at least one apprenticeship fair event during each school year, as specified. WECA Position: Support

AB 303 Addis (D) Current law, until June 30, 2029, authorizes a person proposing an eligible facility, including an energy storage system capable of storing 200 megawatthours or more of energy, to submit an application for certification with the State Energy Resources Conservation and Development Commission of the site and related facility. Current law specifies that the issuance by the commission of the certificate is in lieu of any permit, certificate, or similar document required by any state, local, or regional agency, or federal agency to the extent permitted by federal law, except as provided. Existing law establishes the procedures by which the commission is to review the application. This bill would specify that energy storage systems do not include battery energy storage systems for the above-described purposes. WECA Position: Oppose

AB 305 Arambula (D) Current law prohibits the State Energy Resources Conservation and Development Commission from certifying a nuclear fission thermal powerplant, except for specified powerplants, and provides that a nuclear fission thermal powerplant, except those specified powerplants, is not a permitted land use in California unless certain conditions are met regarding the existence of technology for the construction and operation of nuclear fuel rod processing plants and of demonstrated technology or means for the disposal of high-level nuclear waste, as specified. This bill would exempt small modular reactors, as defined, from those provisions. WECA Position: Support

AB 345 Jackson (D) Current law provides for apprenticeship programs within the Division of Apprenticeship Standards within the Department of Industrial Relations, sponsored by specific entities and employers, and requires the Chief of the Division of Apprenticeship Standards to perform various functions with respect to apprenticeship programs and the welfare of apprentices, including the approval of new apprenticeship programs. Current law makes any person who willfully discriminates in any recruitment or apprenticeship program, as specified, guilty of a misdemeanor. This bill would require the Division of Apprenticeship Standards to confirm the completeness of an application for a new apprenticeship program within 30 days of receiving the application. The bill would provide that, where the chief has not made a final determination on a completed application for a new program within 6 months of receiving the application, the program shall have conditional approval to operate if it satisfies specified conditions, including approval by the United States Department of Labor. The bill would require the chief to make a final determination on an application for a new apprenticeship program within one year of receiving a completed application. The bill would provide its provisions do not apply to apprenticeship programs in the building and construction trades or to firefighter programs. WECA Position: SIA

ACR 28 Ortega (D) Would proclaim the week of March 2, 2025, to March 8, 2025, inclusive, as Women in Construction Week. WECA Position: Support

SB 61 Cortese (D) Current law generally governs retention payments withheld with respect to a contract for a private work of improvement, including by requiring an owner that withholds a retention from a direct contractor to, within 45 days after completion of the work of improvement, pay the retention to the contractor. This bill would limit the amount of a retention payment with respect to a contract for a private work of improvement by, among other things, prohibiting a retention payment withheld from a payment by an owner from the direct contractor, by the direct contractor from any subcontractor, and by a subcontractor from any subcontractor thereunder, for a private work of improvement, from exceeding 5% of the payment. WECA Position: Support

SB 75 Smallwood-Cuevas (D) Current law establishes the Pre-Release Construction Trades Certificate Program within the Department of Corrections and Rehabilitation to increase employment opportunities in the construction trades for incarcerated persons upon release. Current law requires the department to establish a joint advisory committee, composed of representatives from specified organizations and state agencies, for the purpose of implementation of the program and specifies the duties of the committee with respect to the program. This bill would state the intent of the Legislature to enact legislation relating to postrelease apprenticeship programs. WECA Position: Support

SB 84 Niello (R) Would prohibit a construction-related accessibility claim for statutory damages from being initiated in a legal proceeding against a defendant who employs 50 or fewer individuals, as specified, unless the defendant has been served with a letter specifying each alleged violation, and the alleged violations have not been corrected within 120 days of service of the letter. The bill would provide that a defendant is not liable for statutory damages, plaintiff’s attorney’s fees, or costs for an alleged violation that is corrected within 120 days of service of a letter alleging the violation. The bill would also prohibit a plaintiff from avoiding the notice and opportunity to correct provisions and the liability limitations by claiming they are seeking general discrimination damages based on a violation of the Americans with Disabilities Act of 1990 if the underlying claim is based on a defendant’s failure to comply with physical accessibility standards under California law. WECA Position: Support

SB 272 Becker (D) The Local Agency Public Construction Act sets forth procedures that a local agency is required to follow when procuring certain services or work. The act also sets forth specific public contracting requirements for certain transit districts, including the San Mateo County Transit District, for construction work contracts. The act authorizes certain local agencies, including school districts and community college districts, to engage in job order contracting, as prescribed. This bill would establish a pilot program to authorize the San Mateo County Transit District to use job order contracting as a procurement method. The bill would impose a $5,000,000 cap on awards under a single job order contract and a $1,000,000 cap on any single job order. The bill would limit the term of an initial contract to a maximum of 12 months, with extensions as prescribed. The bill would establish various procedures and requirements for the use of job order contracting under the pilot program. WECA Position: SIA

SB 291 Grayson (D) Current law generally requires, as a condition precedent to the issuance, reinstatement, reactivation, renewal, or continued maintenance of a contractor license, a licensed contractor or applicant for licensure to have on file at all times with the Contractors State License Board a current and valid Certificate of Workers’ Compensation Insurance or Certification of Self-Insurance in the applicant’s or licensee’s business name, as specified. Current law generally makes a violation of these provisions a misdemeanor. Current law exempts from this requirement an applicant or licensee who has no employees, provided that they file a statement with the board before the issuance, reinstatement, reactivation, or continued maintenance of a license certifying that they do not employ any person, as specified, and who does not hold a specified license issued by the board, including a C-8 license, as defined. Existing law repeals these provisions on January 1, 2028. This bill would instead repeal the above-described provisions on January 1, 2027. WECA Position: Oppose

Judge Rules Against Biden PLA Mandate A U.S. Federal Claims judge has ruled in favor of a group of construction companies that filed protests against the implementation of former President Joe Biden’s December 2023 executive order that mandated project labor agreements on federal contracts over $35 million. In a briefing earlier this month, Judge Ryan Holte of the U.S. Court of Federal Claims said the implementation of the mandate on seven contract procedures last year ignored federal agencies’ own research indicating PLAs would be anti-competitive and relied on “arbitrary and capricious” presidential policy. The Jan. 21 ruling only impacts those specific bid protests filed in 2024, but construction employer groups touted it as a win for the entire industry. It opens the door for more challenges and puts the future of the rule in question, said Dirk Haire, Washington, D.C.-based partner at Philadelphia-headquartered law firm Fox Rothschild, which represented some of the plaintiffs. Story

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Changes to Retention Proposed Senator Dave Cortese is author of Senate Bill 61, which applies the limits on retention on public works to private work. Existing law mandates that an owner must pay retention withheld from a direct contractor for private work within 45 days after completion. SB 61 introduces a limit on retention payments for such contracts. It prohibits the retention held by an owner from the direct contractor, by the direct contractor from any subcontractor, and by a subcontractor from another subcontractor, from exceeding 5% of the payment for the private work. Let WECA know if this is a good idea.

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Apprenticeship for Teachers? Assembly Member Mike Gipson introduced Assembly Bill 291. Current law mandates the Commission on Teacher Credentialing to set standards for issuing and renewing teaching credentials, certificates, and permits. This bill expresses the Legislature's intention to develop future legislation focused on establishing requirements for apprenticeships for credentialed educators. Gipson may not be aware that college graduates can quickly become credentialed teachers through a network of private and public training programs.

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Let’s Go to the Fair! Assembly Member Laurie Davies wants to change existing law that requires school districts to inform local apprenticeship programs about their career or college fairs and encourages them to host apprenticeship events. Assembly Bill 296 changes the encouragement into a requirement for schools to host at least one apprenticeship fair annually, creating a state-mandated local program. Additionally, if a school district requires community service for high school graduation, the bill mandates that students receive credit for attending fairs.

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No More Battery Fires Assembly Member Dawn Addis thinks burning lithium batteries are a bad idea. Less than two weeks after the huge fire at one of the world’s largest battery storage plants in Moss Landing, scientists affiliated with San Jose State University have discovered unusually high levels of toxic metals in soils at Elkhorn Slough, roughly a mile away. Her answer? No more battery energy storage systems! Her Assembly Bill 303 requires the State Energy Resources Conservation and Development Commission to reject pending battery-related applications. Furthermore, it prohibits development projects with such systems within 3,200 feet of sensitive receptors or on environmentally sensitive sites. This applies statewide, even to charter cities, and is an urgency statute, which would take immediate effect.

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Nuc, Baby, Nuc! California may ban battery energy storage systems, but Assembly Member Juan Arambula wants more nuclear reactors in California. Sure to be a popular bill among the never-nucs. Current law in California restricts the certification and land use of nuclear fission thermal power plants, except for certain specified facilities, unless specific technological conditions for nuclear fuel processing and waste disposal are met. Assembly Bill 305 proposes to exempt small modular reactors from these restrictions. In addition, the Public Utilities Commission (PUC) regulates electrical and gas corporations, and the state's existing policy aims for 100% of electricity retail sales and procurement for state agencies to come from renewable and zero-carbon sources by 2045. The bill also mandates that by January 1, 2028, the PUC must develop a plan to increase electricity generation from nuclear facilities while phasing out reliance on natural gas power. Why, you ask? Artificial intelligence is an energy hog, and every query to ChatGPT is like running a lightbulb for 20 minutes, a research scientist recently told NPR. More

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Workforce Development Assembly Member José Luis Solache wants more jobs in the fire zones. The California Workforce Innovation and Opportunity Act establishes the California Workforce Development Board to assist the Governor in improving and aligning California's workforce and education systems with modern economic needs. His Assembly Bill 338 proposes to allocate $50 million from the General Fund to this board, specifically for the South Bay Workforce Investment Board and the Economic Development Collaborative. The funds aim to train and retrain individuals who are underemployed or unemployed, focusing on rebuilding areas in Los Angeles and Ventura Counties affected by the 2025 wildfires. This initiative targets employment in fields like construction, firefighting, healthcare, and other emergency response sectors. Participants are promised expedited licensing and certification. The bill emphasizes the need for immediate implementation due to the urgency of recovery efforts in these counties.

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In related legislation to Speed Apprenticeship Program Approvals, Assembly Member Corey Jackson is the author of Assembly Bill 345, which mandates the Division of Apprenticeship Standards within the Department of Industrial Relations to verify the completeness of new apprenticeship program applications within 30 days of receipt! If the Chief doesn't make a final decision on a completed application within six months, the program can operate conditionally if it meets specific criteria, including U.S. Department of Labor approval. The Chief must make a final decision within a year. Oh, and this bill excludes building, construction, and firefighter programs. Damn!

Next time, we will cover some new Senate bills.

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Last time we mentioned that Senator Josh Hawley (R-MO) was circulating a framework for potential labor law reform legislation, which includes the laundry list of labor asks. WECA is a member of the Coalition for a Democratic Workplace (CDW), which is pushing back.

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NLRB General Counsel Abruzzo and NLRB Member Wilcox Fired On January 27, 2025, Jennifer Abruzzo was terminated from her role as National Labor Relations Board (NLRB) General Counsel. While her term was not scheduled to end until July 2025, former President Biden set a precedent for terminating NLRB General Counsels of the opposing party in 2021 when he terminated then-General Counsel Peter Robb within hours of his inauguration. It is likely that most, if not all, of Abruzzo’s memos will be withdrawn in the coming months. Deputy General Counsel Jessica Rutter is now Acting General Counsel until a replacement is announced. In addition to terminating Jennifer Abruzzo, Trump also fired Democrat NLRB Member Gwynne Wilcox, despite a law that forbids the firing of NLRB members without evidence of neglect or malfeasance. This leaves three seats open on the NLRB and a lack of a quorum, leaving the Board unable to issue new decisions or regulations. President Trump is expected to fill at least two of the seats with Republican nominees.

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Senator Paul Signals Opposition to Chavez-DeRemer Senator Rand Paul (R-KY) told an NBC political reporter that he plans to vote against the confirmation of Department of Labor Secretary Nominee Lori Chavez-DeRemer, citing her support of the PRO Act. According to the reporter’s post, Paul expects that DeRemer could lose the votes of around 15 more Republicans, but gain the support of some Democrats. DeRemer’s confirmation hearing is expected to take place in the next couple of weeks.

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94% of Incumbent State Legislators Won Re-Election State legislative sessions are in nearly full force - but Ballotpedia took a break to look back at the final figures for how incumbents performed in the 2024 election cycle. In total, 303 incumbents lost, representing about 6.2% of the 4,853 who ran. In other words, 94% of incumbents won re-election. This was the fewest incumbent defeats in any even year since 2012. 408 incumbents lost in 2022, and 382 lost in 2020. Between 2010 and 2022, the average number of overall incumbent defeats was about 445.

·        169 (or about 3.5%) of incumbents who ran in primaries were defeated

·        134 (2.9%) of those who ran in general elections were defeated

2024 was the third presidential election year since Ballotpedia started collecting this data. Over that time, the number of incumbent defeats in presidential election years has fallen.

Balanced Budget? David Crane, President of Govern for California, recently wrote about California’s “balanced budget”. He gave WECA permission to republish his observations.

Last Monday, Governor Newsom issued a press release previewing a "balanced" budget for 2025-26, so imagine our surprise when his proposed budget released today disclosed that balance was achieved by transferring $7.1 billion from the Rainy Day Fund. In your household do you consider your budget balanced if you dip into savings to cover a deficit? We don’t. In fact, when the Monday press release extolled that "state revenues are up by $16.5 billion," we expected the proposed budget would not only not draw from the Rainy Day Fund, but also would pay back $4.9 billion taken from the Rainy Day Fund last year. It’s misleading to characterize such a budget as "balanced", and worrisome that Newsom keeps taking money from the Rainy Day Fund when the economy and stock market are vibrant and reserves might be needed more than ever. We’re still reading through the document and will have more to say, but this is not a good start.

Crane followed up with additional analysis:

Governor Newsom’s proposed budget includes a paragraph entitled “GOVERNMENT EFFICIENCY AND COST SAVING MEASURES”, but the measures mentioned there are a tiny fraction of the inefficiencies and costs added under Newsom. E.g., in the year Newsom took over from Jerry Brown, the Executive Branch hosted 211,000 jobs on whom the state spent $19.5 billion in salaries.

Since then, Newsom has expanded staffing and salaries in favor of public sector unions that are also his political supporters, with the result that the proposed budget shows staffing up 21% and salary spending up 44% to $28.1 billion per year.

Schedule 6 of the budget, which includes State employees outside the Executive branch, shows a sharp drop in efficiency. E.g., employees per 1,000 population is up 17% and General Fund expenditures per Capita are up 65%. Have public services per Capita improved at all — much less 65% — since Newsom took office?

Another contributor to declining efficiency is rising spending on benefits for retired employees, another Newsom supporter. E.g., spending on Other Post-Employment Benefits (OPEB) is up 74% and takes more than $4 billion per year from the General Fund. California's OPEB benefits are multiples of those provided by other states. On top of that is pension spending of $14 billion, up 46%. The same issues handicap efficiency in schools, colleges, universities, cities, counties and other agencies funded and governed by the state.

As with his untruthful claim of a balanced budget, Newsom’s claim about an efficient budget is misleading.

Learn more about Govern for California here and consider supporting their work.

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More Pain for Employers The Legislative Analyst’s Office (LAO) released “Fixing Unemployment Insurance,” finding that the “anticipated annual shortfalls” between revenue and benefits paid out “will add to the state’s looming $20 billion outstanding federal UI loan” and “expects the loan to grow by billions of dollars before federal surcharge UI taxes are high enough for the state and employers to begin making progress toward repaying the loan.” The LAO recommends the legislature “increase the taxable wage base” on which employers are required to pay UI taxes, from a maximum of $7,000 to $46,800, which would “place California among the ten states with taxable wages bases above $40,000 and all other Western states,” but notes “this step alone would not be sufficient to address the state’s solvency problems.”

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Litigation Filed to Enjoin SB 399 Prohibiting Mandatory Meetings During Union Organizing On January 1, 2025, Senate (SB) Bill 399, went into effect in California, which joined other states, including Illinois, Connecticut, Hawaii, New York, and Oregon, in enacting statutes that prohibit “captive audience” meetings, similarly limiting employers’ ability to conduct mandatory meetings on religious or political matters, including a labor organization. Several business groups have filed a federal lawsuit challenging the constitutionality of SB 399 and seeking declaratory and injunctive relief. The lawsuit, filed in the Eastern District of California, argues that the law infringes on employers’ rights to free speech and equal protection under the First and Fourteenth Amendments of the U.S. Constitution. The plaintiffs contend that SB 399 discriminates against employers’ viewpoints on political matters and restricts the content of their communications with employees. They argue that the law stifles employer speech and is preempted by the National Labor Relations Act (NLRA), which protects employer free speech under Section 8(c). Story

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Falls and Construction Lead in Workplace Fatalities





 

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Senator Hawley Circulating Framework for Labor Reform Senator Josh Hawley (R-MO) is circulating a framework for potential labor law reform legislation. The framework calls for:

• notice posting requirements on employees’ collective bargaining rights;
• safety provisions for warehouse workers, including a prohibition against work speed quotas;
• banning captive audience meetings;
• ambush elections within 20 business days;
• a 10-day time period for the employer and union to begin negotiating following a representation election; and
• civil penalties, increased damages, and employees’ right to seek remedies in court if the employer violates the NLRA.

Hawley and the Teamsters are sharing the framework with Senate offices, looking for additional support. Hawley’s comment to the press regarding the framework was that he “look[s] forward to advancing meaningful legislation for working people this Congress.” While it’s difficult to weigh in on the consequences of the proposal without seeing actual legislative text, these concepts could trigger First and Seventh Amendment concerns.

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Higher OSHA Penalties Kick-in This Week The Department of Labor last week announced its annual inflation adjustments to OSHA civil penalties for 2025, taking effect for violations issued on or after Jan. 15, 2025. Below are the maximum penalty amounts:


 

·       State plan workplace safety agencies are required to increase their maximum penalties in alignment with OSHA’s penalty increases to maintain at least as effective penalty levels.

·       Other DOL civil penalties are similarly increasing. More information can be found in the final rule.

READ MORE

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SOMAH Decision Workshop, February 11, 2025, 1:00 p.m. - 3:00 p.m. PT The SOMAH Program will host a workshop in compliance with the California Public Utilities Commission’s (CPUC) Final Decision D.24-11-006. This workshop will provide an opportunity to explore upcoming program changes and engage in discussions on key topics, including:

·      New incentive levels for paired storage systems

·      Potential impacts on tenant benefits, budgets, and SOMAH goals

·      Updated safety rules for storage installations

·      Alignment with SGIP rules and incentives

·      Opportunities for prior SOMAH applicants to enhance existing systems with storage

·      Strategies to achieve SOMAH’s 300 MW target

Register

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Former EEOC Commissioner and Acting WHD Administrator Announced as Pick for Deputy Secretary of Labor On January 14, 2025, President-elect Trump named former U.S. Equal Employment Opportunity Commission (EEOC) Commissioner Keith Sonderling as his pick for deputy secretary of the U.S. Department of Labor (DOL). This is a significant appointment as it places an experienced labor and employment attorney, who has served in both the EEOC and DOL, as second-in-command under the previously announced Secretary of Labor pick Lori Chavez-DeRemer. Sonderling began his career as a management-side labor and employment attorney in his native state of Florida. After spending nearly 10 years in the private sector, he joined the DOL in the first Trump administration. There he held several roles, most notably serving as the acting and deputy administrator of the Wage and Hour Division (WHD). In 2020, Sonderling was tapped to become one of five commissioners at the EEOC. He was strongly supported by the business community and confirmed by the U.S. Senate with bipartisan support. He finished his tenure at the EEOC in August of 2024. Story

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Lawsuits Dangle Compensation Lure to California Wildfire Victims While the cause of the Southern California wildfires is still under investigation, several lawsuits have been filed claiming utility equipment is responsible for one of the largest blazes. Attorneys working with ClassAction.org are now looking to file a class action lawsuit on behalf of people who were injured by or suffered losses due to the wildfires, including the Palisades, Eaton, Kenneth, Hurst, Lidia and Sunset fires. Those who were forced to evacuate, who were injured, whose homes were damaged, whose businesses were impacted, or had a sleepless night because they worried about fires may be able to take action. Looters gotta loot!

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Higher Electricity Costs Expected Electricity bills in California — already among the nation’s highest — could soon skyrocket. In addition to killing two dozen people and destroying at least 12,000 structures, the devastating wildfires in Los Angeles have also damaged the region’s electrical system, writes Politico. “Ultimately, ratepayers will foot the bill,” said Travis Miller, a utilities analyst at Morningstar. And that is just one of the expected costs to residents. “Customers face a triple whammy here, with potentially higher insurance costs, higher utility bills and the recovery from property damage they suffered,” Miller said. The total damage from the fires is expected to rise north of $250 billion—making it one of the nation’s costliest disasters.

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Cal/OSHA’s Workplace Violence Plan Since July 2024, California employers have been working under the requirements of SB 553 for workplace violence (WPV) prevention. After several years of planning to enact a new Cal/OSHA regulation, the Division of Occupational Safety and Health will take the next steps in the new year to combine the law with its own vision. That work officially begins on January 24th, 2025, with an advisory committee meeting via video conference. SB 553 requires DOSH to forward a rulemaking proposal to the Standards Board by the end of 2025. The Board must adopt a regulation by the end of 2026.