In This Edition:

·        Impact of Cemex

·        Senate Leader Drinks Kool-Aid

·        Gallego Follows Patel’s Model

·        Hope for Diablo?

·        Trump PLA Policy Wins

·        Utah Water Emergency

·        No Chips for You!

Cemex Construction Materials Pacific, LLC v. NLRB

The recent Ninth Circuit decision in Cemex Construction Materials Pacific, LLC v. NLRB is a major development for WECA contractors in California because it left in place a new, more union-friendly framework for organizing workplaces. The court refused to weigh in on the new National Labor Relations Board’s “Cemex” standard, which allows a union to demand recognition based on signed authorization cards—without first going through a traditional secret-ballot election. If an employer refuses that demand, they must promptly petition for an election, but even minor unfair labor practice findings during that process can result in the Board ordering the employer to recognize and bargain with the union anyway.

For contractors, the practical effect is a much narrower margin for error during any organizing effort. Routine management communications, missteps by supervisors, or allegations of interference, whether intentional or not, can now carry far greater consequences. Under the Cemex framework, those issues can effectively bypass an election entirely and trigger mandatory union recognition. This raises the stakes significantly compared to the prior standard, where elections were the default mechanism and remedies for employer violations were less likely to result in automatic recognition.

In California, a state which is already a highly regulated and labor-friendly environment, the decision adds another layer of risk for open-shop contractors. Construction firms, which often rely on decentralized jobsite supervision and rapidly shifting crews, may be especially vulnerable to claims of unfair labor practices during organizing campaigns. The ruling underscores the need for heightened training, careful communication protocols, and early legal guidance whenever organizing activity is suspected.

In short, the Ninth Circuit’s failure to overturn the NLRB’s Cemex standard shifts the balance of power toward unions by making it easier to secure recognition and harder for employers to rely on elections as a safeguard. For WECA contractors, it means that preparation, compliance, and disciplined responses to organizing efforts are now more critical than ever.

The implications of the Cemex decision could be significantly amplified if Congress enacts the Faster Labor Contracts Act (FLCA) (H.R. 5408 / S. 844). As discussed, Cemex lowers the threshold for union recognition by allowing card-check demands to trigger either rapid elections or, in the event of alleged employer missteps, mandatory recognition. FLCA would pick up where Cemex leaves off—imposing strict timelines for first-contract negotiations and, if no agreement is reached, requiring binding arbitration to set the terms of a collective bargaining agreement.

Together, these policies would create a compressed and high-risk pathway for non-union contractors: from organizing drive, to recognition, to a government-imposed contract in a matter of months. For contractors operating in California’s already labor-intensive regulatory environment, this combination would significantly reduce the ability to rely on traditional safeguards such as secret-ballot elections and extended good-faith bargaining. Instead, even minor alleged unfair labor practices could accelerate the process toward both union recognition and binding contract terms determined by a third party.

While FLCA faces meaningful legislative hurdles, particularly the 60-vote threshold in the U.S. Senate, it remains a live issue. A successful discharge petition in the House could force a floor vote, and bipartisan sponsorship suggests continued momentum. For open-shop contractors, the takeaway is clear: the evolving federal labor landscape is trending toward faster organizing timelines and reduced employer flexibility, making proactive compliance, supervisor training, and early-response strategies more important than ever.

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SB 1256: Judicial Reform or Special Interest Bargaining Chip?

California has no shortage of obstacles to housing development. Between environmental review, local opposition, financing challenges, and litigation, even modest residential projects can spend years trapped in procedural limbo before a single foundation is poured. Senate Bill 1256 by State Senator Brian Jones was originally presented as an effort to address one narrow but increasingly common abuse of the development process: repetitive litigation.

The bill seeks to prevent plaintiffs from bringing a second lawsuit under the Subdivision Map Act after substantially similar claims have already been litigated under the California Environmental Quality Act (CEQA). According to the author, some opponents exhaust every CEQA claim against a housing project and then pivot to Map Act litigation to continue delaying or obstructing construction. SB 1256 attempts to establish that once those claims have been fully adjudicated, substantially similar challenges cannot simply be repackaged and relitigated under a different statute.

On its face, that is a legitimate public policy discussion. California’s courts are overloaded, housing projects routinely face years of delay, and duplicative litigation can become less about environmental protection and more about attrition. Reports surrounding the Harmony Grove Village South development in San Diego County, which is widely believed to be the catalyst for the bill, illustrate the frustration project applicants experience when litigation appears effectively endless.

Unfortunately, recent amendments to SB 1256 took the bill in an entirely different direction.

Rather than establishing a uniform legal standard applicable to all qualifying projects, the bill now conditions those litigation protections on the adoption of a Project Labor Agreement (PLA). In other words, a developer may only receive protection from duplicative litigation if they agree to a union-only labor framework for the project.

That changes the bill from a judicial efficiency measure into something far more troubling: a legislative exchange in which access to legal certainty is conditioned on granting special-interest economic concessions.

There is simply no logical connection between repetitive litigation and mandatory PLAs. A project either deserves protection from duplicative lawsuits because repetitive litigation is abusive, or it does not. The legal principle should apply equally regardless of whether a project uses union labor, merit shop contractors, or a mix of both.

Instead, SB 1256 creates a two-tiered system. Developers willing to sign a PLA receive procedural advantages unavailable to developers who choose open competition. That should concern anyone who believes California’s laws should operate neutrally rather than reward politically favored labor structures.

That outcome directly conflicts with California’s stated goals of expanding housing production and increasing opportunities for small and emerging contractors. At a time when policymakers routinely discuss affordability, workforce shortages, and supplier diversity, SB 1256 runs counter to this by tying legal protections to exclusionary labor mandates.

Perhaps most concerning is the precedent this establishes. If the Legislature can condition protection from duplicative litigation on a PLA today, what comes next? Will expedited permitting, CEQA streamlining, tax incentives, financing assistance, or other legal protections similarly become contingent upon adopting favored labor agreements?

Judicial reforms should be based on sound legal principles, not leveraged as bargaining chips for special interests.

If duplicative CEQA and Map Act litigation is truly a statewide problem, then the solution should apply equally to all projects meeting the legal standard. California should not create a system where developers must effectively purchase access to legal certainty by surrendering control over workforce decisions.

WECA supports fair and open competition. We support efforts to reduce abusive litigation tactics that unnecessarily delay housing construction. But those reforms must apply uniformly, not only to projects willing to grant unions exclusive control over construction labor.

SB 1256 began as a discussion about judicial efficiency. It is rapidly becoming a case study in how even broadly supported reforms in Sacramento can be transformed into vehicles for expanding PLA mandates.

WECA members are encouraged to contact Jones and share their concerns.

·        Sacramento: (916) 651-4040

·        Escondido: (760) 796-4655

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Ruben Gallego’s CODEL Antics Raise Eyebrows

(A CODEL is a COngressional DELegation, which is an official trip taken by Members of Congress to meet with leaders outside of Washington, both in the United States and abroad.) Multiple sources said that the Arizona Democrat’s behavior on a government trip to Colombia last summer raised concerns among U.S. officials. Embassy staff in Bogotá became aware of what they believed was a credible threat to his life and dispatched security personnel to meet Gallego and pick him up after dinner. After a discussion, Gallego decided to stay out, eventually walking to a nearby nightclub where he stayed until the wee hours.

At the club, Gallego and his chief of staff texted multiple embassy staff members, inviting them to join. At least one female embassy employee told her State Department colleagues about the outreach, Reese reports. It is unclear whether any staff took Gallego and his aide up on their offer, and there are no allegations that Gallego engaged in inappropriate behavior with any embassy staff member.

The next morning, Gallego did not show up for a scheduled bus that was set to take members of the traveling party to the airport for their return flight. The chief of staff had to get a copy of Gallego’s hotel key and get him from his room.

Gallego’s response: The senator “coordinated closely with embassy security throughout the trip, including on the evening in question, and followed all security guidance,” a spokesperson said. “While at dinner at the conclusion of a successful congressional delegation trip, the Senator and his Chief of Staff invited Embassy staff to join them, a common way to recognize the work of those who support these visits.”

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Watt’s Next?

A coalition of business, labor, and energy groups announced the creation of Diablo Canyon 2045, an alliance of 25 organizations that hopes to push legislators to extend the Diablo Canyon Power Plant’s operations beyond its current 2030 limit to 2045. The announcement signals that Diablo Canyon supporters intend to pressure the California Legislature to pass a bill this year to extend operations. The coalition includes the Bay Area Council and a bevy of other regional business groups, the International Brotherhood of Electrical Workers local 1245, which represents workers at the plant, and pro-nuclear advocacy groups like Mothers for Nuclear and the Clean Air Task Force.

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Court Affirms Biden-Era PLA Mandate

Former President Joe Biden’s project labor agreement mandate has won another battle, further cementing it as policy even after President Donald Trump’s administration took office.

The U.S. Court of Appeals for the Eleventh Circuit on Tuesday affirmed the denial of a preliminary injunction to halt the PLA mandate, which impacts projects receiving $35 million or more in federal funding. Associated Builders and Contractors and its Florida First Coast chapter filed the appeal for an injunction.

In the decision, Chief Judge William Pryor said the appeal would likely fail because the Office of Management and Budget issued a memo confirming that the Biden-era order would remain in effect, even under the Trump administration.

ABC has long opposed the requirement of PLAs, saying the mandate unfairly locks out nonunion builders from winning federal contracts. In a statement shared with Construction Dive, ABC President and CEO Michael Bellaman said the group will continue to fight against the mandate.

“At no point, under any administration, have federal contractors ever been prevented from voluntarily entering into a PLA when such an agreement makes sense for their workforce,” Bellaman said. “Every qualified contractor should have the opportunity to build America.”

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Cox Says Utah Drought Declaration is “Coming fairly soon.”

Utah’s water landscape doesn’t look good. After an abysmally low winter for snow, 100% of the state is already in drought. Plus, negotiations on the future of the Colorado River are still going nowhere. Gov. Spencer Cox thinks that grim reality could actually lead to more cooperation on the future of the Colorado River. One of the main sticking points is that nobody at the table could agree on what would happen in a worst-case scenario. Story

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Worker Microchipping Laws Enacted in Dozen States

At least 11 states have laws in effect prohibiting employers from requiring employees to be implanted with a microchip or other permanent identification marker as a condition of employment (Damn! Another great HR idea squashed!), according to LexisNexis® data. Washington enacted a worker microchipping ban (HB 2303) this year that takes effect on June 11, and three other states considered bills dealing with worker microchipping. Story

In This Edition:

·        Union Mandates Disguised as Policy

·        Tax Subsidies for Some

·        Faster Labor Contracts Act

·        PLAs Claim Another Victim

·        Swalwell Impact

·        Walkaround Rule

·        IBEW joins Wildfire Victims First

·        Fire Reconstruction

·        Withdrawal Liability Industry Rules

·        Arizona Workplace Heat Rules

·        Retainage and Payment Practices

·        Arbitration Limits and PAGA

·        Can the AG Police an Elected Sheriff?

·        Team Building

·        How Long Does It Take to Buy Books for Children?

·        More DOL Drama

A Troubling Pattern, Union Mandates Disguised as Policy

A recent CalMatters article highlights a growing trend in Sacramento: conditioning basic business operations on union agreements. The legislation, SB 1203, would require private security firms to enter union contracts simply to provide required “use-of-force” training. In effect, the state is leveraging regulatory authority to compel unionization in an otherwise private industry. (CalMatters)

While framed as workforce training and public safety reform, the mechanism is unmistakable: no union agreement, no ability to operate fully. This is not an isolated policy experiment—it is part of a broader legislative pattern that should concern every open-shop contractor in California.

This same approach is now being applied to construction through measures such as AB 1809 (Fong), which would require school districts to adopt Project Labor Agreements (PLAs) as a condition for using Job Order Contracting (JOC). JOC has long been one of the most accessible procurement methods for small, emerging, and diverse contractors. Conditioning its use on a PLA effectively shuts the door on those firms unless they agree to union terms—terms many of their employees have not chosen.

AB 2152 (Gonzalez) takes this model even further. By tying judicial streamlining, a valuable tool to accelerate critical public safety projects like fire stations, to the adoption of a PLA, the Legislature is again using public policy as leverage. Contractors and public agencies face a coercive choice: accept a PLA or lose access to expedited approvals.

Across these proposals, the pattern is clear:

• SB 1203 (Security Guards): No union contract, no training authority.
• AB 1809 (School Construction): No PLA, no access to JOC.
• AB 2152 (Fire Stations): No PLA, no judicial streamlining.

Each bill conditions participation in the marketplace, or access to critical tools, on entering into union agreements. This is not about safety, training, or efficiency alone; it is about restructuring entire industries through indirect mandates.

For contractors, construction or security, particularly small, minority-owned, and merit shop firms, these policies create significant barriers:

• Reduced competition and fewer bidding opportunities
• Increased costs and administrative burdens
• Exclusion of skilled workers who have chosen not to affiliate with a union

For public agencies and taxpayers, the result is fewer bidders, higher costs, and less flexibility in delivering critical infrastructure.

Whether in private security or public construction, Sacramento is increasingly using regulatory “carrots and sticks” to compel unionization. The result is a steady erosion of fair and open competition.

WECA supports high standards for safety, training, and workforce development. But those goals can, and should, be achieved without excluding the majority of California’s construction workforce.

If these policies continue to expand, the question is no longer where this model will be applied next, but whether any sector will be left untouched.

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Sacramento’s Selective Subsidies: Hollywood Gets the Red Carpet, Agriculture Gets the Cold Shoulder

California policymakers have made one thing abundantly clear: when it comes to subsidizing labor costs, it’s not the policy, it’s the politics.

For years, the state has generously supported the entertainment industry through expansive film and television tax credits. These subsidies, now totaling hundreds of millions of dollars annually, are explicitly designed to offset production costs, particularly labor costs, to keep Hollywood rooted in California. Lawmakers and labor leaders alike defend these incentives as essential to preserving jobs and economic activity.

Yet when a similar concept is proposed for one of California’s oldest and most essential industries, agriculture, the reaction is dramatically different.

Senate Bill 921, authored by Senator Shannon Grove, seeks to address a very real and well-documented consequence of prior legislative action. When California phased in agricultural overtime requirements under AB 1066, the intent was to increase worker pay. The reality, however, has often been the opposite: growers reduced hours to control costs, and many farmworkers saw their take-home pay decline.

SB 921 attempts to correct that outcome. By offering a targeted tax credit to offset overtime costs, the bill would incentivize employers to restore hours and increase earnings for workers. It is, quite plainly, an effort to fix a problem created by the Legislature itself.

But unlike Hollywood, agriculture has not been welcomed with open arms.

The California Labor Federation has come out strongly against SB 921, arguing that it would “subsidize employers” and shift the cost of wages onto taxpayers. That argument might carry more weight if the state were not already doing precisely that for the entertainment industry.

The inconsistency is hard to ignore.

When the beneficiaries are film studios and unionized production crews, subsidies are framed as “economic development.” When the beneficiaries are farmers and farmworkers, many of whom are among the most economically vulnerable in the state, the same policy becomes an unacceptable “corporate giveaway.”

This is not just a contradiction; it is a policy double standard.

And the issue is not confined to agriculture.

California is increasingly experimenting with aggressive wage mandates across multiple sectors. The fast-food industry has already seen the implementation of a $20 minimum wage, with early reports indicating reduced hours and workforce adjustments. In Los Angeles, proposals are advancing that would push hotel and tourism wages toward, and in some cases beyond, $30 per hour.

The pattern is becoming familiar: mandate higher wages, then confront the unintended consequences as employers adapt by cutting hours, raising prices, or reducing hiring.

SB 921 represents a rare acknowledgment of those consequences and an attempt to mitigate them. Yet instead of engaging with the underlying problem, opponents have chosen to reject the solution outright.

California cannot continue to pick winners and losers based on political alignment or industry profile. If subsidizing labor costs is sound policy for Hollywood, it cannot be dismissed as irresponsible for agriculture. And if the state is unwilling to revisit the impacts of its own mandates, it risks compounding the very inequities it claims to address.

At a minimum, policymakers owe it to farmworkers and to the broader economy to apply their principles consistently.

Right now, Sacramento’s message is clear: red carpets for some, closed doors for others.

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Josh Hawley is Still Trying to Sell Unions to Republicans. It’s Not Working.

Sen. Josh Hawley, a populist Republican who has rankled conservatives and union organizers alike with his picket-line visits and labor policies, aims to put forward a slew of legislation based on his self-proclaimed “pro-worker framework.” The framework includes increasing civil penalties for employers who violate labor laws and banning required “captive audience” meetings, where employers discourage workers from organizing.

Hawley has also introduced the Faster Labor Contracts Act, which requires employers to start negotiations for a first contract within 10 days of a union’s certification.

These policies are lifted from Democrats’ Protect the Right to Organize Act, or PRO Act, a comprehensive labor-reform bill that never came to a floor vote when Democrats controlled the Senate. Unions, from the Teamsters to the AFL-CIO to the United Food and Commercial Workers, say they are on board with the PRO Act and Hawley’s Faster Labor Contracts Act.

“There was just not a realistic path forward to the president’s desk for that bill as a whole,” said Sunshine McBride, the Teamsters’ federal legislative director, who added that the union worked with Hawley on turning the framework into legislation. “By doing the bills as standalones, we were creating more opportunities for Republicans to start to take those actions depending on where they fell on a continuum of support for labor.”

Rep. Donald Norcross (D-N.J.) on Monday filed a discharge petition to force a vote on Hawley's bill. Teamsters leader Sean O’Brien joined Norcross and Rep. Bobby Scott (D-Va.) for a press conference on Monday ahead of the discharge petition, which the New Jersey lawmaker filed Monday night. The move comes after O’Brien met with White House officials last week.  Story

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Sacramento’s I Street Bridge Bids Come in Millions Over Budget; PLA Victim?

Construction bids Sacramento received for the I Street Bridge replacement project were millions of dollars higher than anticipated, the city announced Wednesday. The existing bridge over the Sacramento River has connected Yolo and Sacramento counties for more than a century. Bid documents show that the city expected the cost to be $260 million, but the lowest bid received was for just under $399 million. The city still hopes to complete the project, but the timeline has been pushed back to at least 2027. It was previously expected to begin this summer. The city has a PLA in place, which undoubtedly contributed to the bids exceeding the engineer’s estimates. Story

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Friend of a Predator

The fallout from Swalwell’s implosion hasn’t been confined to the house. Sen. Ruben Gallego (D-Ariz.) has been a longtime personal friend and political ally of Swalwell’s, and he came strongly to his defense when rumors about the congressman’s behavior started swirling.

Now the senator, too, has been forced into damage-control mode. In a press conference in his office, a harried Gallego disclaimed all knowledge of the predations of his, he insisted, former friend. “I let this man into my family,” Gallego said. “Look, we socialized. We went out. But I never saw him engage in any of the predatory behavior, harassment, sexual assault, anything like that.”

“I definitely look at the world a different way now,” Gallego added, pledging to “take, you know, personal steps and office steps to make sure that we don’t even get close to a gray line.”

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Cal/OSHA’s Proposed Walkaround Rule

Cal/OSHA has issued a Notice of Proposed Rulemaking that would significantly expand the scope of individuals who may accompany agency inspectors during workplace walkaround inspections. The proposed regulation, 8 CCR § 331.8, would, among other things, allow third parties such as union organizers, attorneys, and outside consultants to accompany Cal/OSHA compliance officers during inspections of non-union workplaces, so long as the inspector finds “good cause” for their participation.

Most opponents of the rule criticized Cal/OSHA for advancing this proposal while a federal court decision on the legality of Fed/OSHA’s similar Walkaround Rule could come at any time.

Key Themes in Comments

• The proposed rule opens the door for union organizers, plaintiff’s attorneys, and other third parties to access non-union workplaces under the guise of assisting with safety inspections, creating significant risks of workplace disruption, litigation exposure, and trade secret compromise.
• Cal/OSHA is rushing this rulemaking without justification, particularly given the pending federal court challenge to Fed/OSHA’s analogous rule. The U.S. Chamber of Commerce and several trade groups have filed suit in the Western District of Texas, and a decision on summary judgment could arrive any day.
• The coalition urged Cal/OSHA to convene an advisory committee process before sending any proposal to the Cal/OSHA Standards Board. An advisory committee would allow for more meaningful stakeholder engagement, including the opportunity to review and comment on draft regulatory text; a step that has been absent from this process so far.

If Cal/OSHA will take up our recommendation to slow the process and convene an advisory committee. Regardless, we will continue to monitor the rulemaking and look for every opportunity to engage, both informally with the agency and formally through the Cal/OSHA Standards Board process that would follow if Cal/OSHA proceeds.

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#WCGW

Housing construction groups like the state building industry, apartment associations, and the IBEW are banding together in a new coalition pressing state lawmakers to urgently adopt changes to the state’s electric and insurance systems. They argue that it would improve California's recovery from catastrophic wildfires. Major utilities, including PG&E, are part of the effort, too, said Nathan Click, a spokesperson for the group.

The coalition group, called “Wildfire Victims First,” seized on the California Earthquake Authority’s big disaster resilience report to press the Legislature to act “with urgency” on “comprehensive reforms” in a joint statement.

The group is staying away, for now, from embracing specific policies, like getting rid of inverse condemnation, the state’s legal doctrine automatically holding electric utilities liable for damages from wildfires they spark, according to a spokesperson.

But its broad focus includes ensuring faster payouts for victims and criticizing hedge funds and trial attorneys for taking a cut of victims' payouts. That position puts the group sharply at odds with those who seek compensation directly from utilities for wildfires they spark, including trial attorneys who represent wildfire victims and the property insurance industry. [Politico]

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Big Talk, Little Build

Soon after wildfires leveled two Los Angeles communities last year, public officials touted the record-setting speed of the recovery. California Gov. Gavin Newsom said it was happening “faster than ever before.” Los Angeles Mayor Karen Bass boasted it was “on track to be the fastest in California history.”

That’s no longer true, according to an analysis of permitting data.

The analysis found just 34 homes have been built in Pacific Palisades and Altadena in the 15 months since the blazes, a figure that trails the rate of construction following two recent, similarly destructive fires in Northern California.

The review also determined that owners of fewer than half of the 9,900 lots where homes were destroyed have applied for permits to build new houses.

The data show that what residents and policymakers alike have increasingly feared is the case: Los Angeles is falling short of early expectations for rapid rebuilding, as frustrated wildfire survivors continue to confront barriers to returning home. [Politico]

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Ninth Circuit Clarifies Withdrawal Liability Industry Rules

The Ninth Circuit (which has jurisdiction over these 9 states: Alaska, Arizona, California, Hawaii, Idaho, Montana, Nevada, Oregon, Washington, and includes Guam and the Northern Mariana Islands), recently issued a pair of decisions clarifying how the rules governing withdrawal liability apply to employers in certain industries.  In Walker Specialty Const., Inc. v. Bd. of Trs. of the Constr. Indus. & Laborers Joint Pension Tr. for S. Nev., No. 24-1560, 2026 WL 21743 (9th Cir. Jan. 5, 2026), the Court held that an employer did not withdraw from a multiemployer pension plan, and thus did not owe withdrawal liability, because the employer’s asbestos abatement work qualified for the “building and construction industry” exemption.  And in Nevada Resort Ass’n–Int’l All. of Theatrical Stage Emps. & Moving Picture Mach. Operators of the U.S. and Can., Local 720 Pension Tr. v. JB Viva Vegas, LP, Nos. In 24-3047 & 24-2791, 2026 WL 32577 (9th Cir. Jan. 6, 2026), the Court held that the plan primarily covered employees in the entertainment industry because the majority of employees performed at least some entertainment-related work. More

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Industrial Commission Approves Arizona Workplace Heat Rules Supported by Businesses

The Industrial Commission of Arizona voted recently to adopt strengthened workplace heat safety guidelines for employers statewide, delivering an outcome the business community called a practical, Arizona-driven solution to a genuine challenge. The commission’s action follows nearly a year of work by the Governor’s Workplace Heat Safety Task Force, which brought together business, labor, and occupational safety experts to develop guidance grounded in real-world conditions. The Arizona Chamber of Commerce & Industry and the Arizona Manufacturers Council participated throughout that process, with Grace Appelbe representing both organizations. More

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New California Statutes Reshape Retainage and Payment Practices in Private Construction Contracts

Effective January 1, 2026, two groundbreaking California statutes will significantly impact private construction contracts executed after this date. The first, California Civil Code § 8811, imposes a strict five percent (5%) cap on retainage for most private projects, fundamentally changing the longstanding practice of parties negotiating retainage terms and percentages. The second, California Civil Code § 8850, introduces an elaborate prompt payment and claim resolution framework for private works, aimed at alleviating payment delays and providing clear procedures for the resolution of construction contract disputes. Together, these statutes are poised to enhance payment transparency, limit tactical withholding of funds, and encourage prompt, fair compensation for contractors and subcontractors, while also creating new compliance obligations and potential penalties for owners. Construction industry participants should familiarize themselves with these changes to ensure contractual practices align with the new statutory requirements and to mitigate risks associated with noncompliance. Story

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Arbitration Limits and PAGA Maneuvering

Employers in California continue to face rough waters when it comes to enforcing arbitration agreements. Through the lens of some recent California cases, employers may want to consider at each stage, from the roll-out of the arbitration agreements to after arbitration is initiated. Story

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Ballot Seizure Case Poses a Major Legal Question: Can the AG Police an Elected Sheriff?

Riverside County Sheriff Chad Bianco’s unprecedented seizure of more than 650,000 ballots as part of an investigation into dubious election fraud claims has drawn widespread public attention, welcomed by the Republican gubernatorial hopeful, and condemnation from Democrats and election law experts.

But as California’s highest court weighs the merits of Bianco’s investigation, it will also be taking a stand on a much bigger political and legal question: does the state’s elected attorney general ultimately have authority over local sheriffs, who are themselves independently elected?

Attorney General Rob Bonta, a Democrat, contends California law makes him the state’s chief law officer, with the power to override decisions by local sheriffs. Bianco argues the attorney general’s authority is not absolute, and points to the fact that a Superior Court judge in his county approved a criminal search warrant for seizure and examination of the ballots.

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Team Building

There's a corporate team-building exercise where you have to climb on the boss.

Companies are always looking for fresh ways to foster team spirit by swapping traditional icebreakers for activities like country music songwriting. But even in this era of blurring professional boundaries, what's happening in the Spanish region of Catalonia is extreme. Employers are ditching escape rooms in favor of human tower workshops. Catalans have been erecting human towers-castells, to celebrate local festivities since the 18th century. While the activity sounds like a gross breach of corporate etiquette, feedback is overwhelmingly positive.

Story

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Quiz: How Long Does It Take to Buy Books For Children?

Four years ago, California set aside $70 million to provide more books to children, and so far zero books have been distributed, reports CalMatters' Adam Echelman.

In 2022, lawmakers allocated funds to the California State Library so it could partner with Dolly Parton's Imagination Library to provide kids with books. The state library then created a separate nonprofit, the Strong Reader Partnership, which spent $1.1 million in state funding to pay a consultant, financial services companies, and marketing firms. But as of 2025, the organization had not distributed a single book.

Then, in 2024, when the project first came under scrutiny because most of the program's money sat idle for nearly two years, the Legislature passed a law rerouting 90% of the money earmarked in 2022 to go directly to the Tennessee-based Dollywood Foundation, instead of the Strong Reader Partnership or another California nonprofit.

At a Senate hearing last week, top officials from the Strong Reader Partnership argued that the program failed because lawmakers pulled funding prematurely. They also said the nonprofit fulfilled its duty to fundraise and secure participation from local organizations, not to deliver books.

But Sen. Sasha Renée Pérez remained skeptical. The Pasadena Democrat said the state plans to audit the program. Story

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More DOL Drama

The escalating standoff between two of Donald Trump's appointees is roiling the Labor Department and could force the White House to fill another Cabinet vacancy. Inspector General Anthony D’Esposito is nearing the end of an internal probe into Labor Secretary Lori Chavez-DeRemer over alleged misconduct, including misuse of government resources and workplace behavior. The Labor secretary has denied wrongdoing. (Update: LC-D is headed to a great new private sector job, I am betting at a union)

The investigation has already led to multiple resignations and drawn in dozens of staff interviews and outside records. The clash has created tensions inside the department and raised political stakes for the administration, which is juggling other vacancies and midterm pressures.

Questions have also emerged about D’Esposito’s independence as a Trump appointee. The probe’s outcome could determine whether Chavez-DeRemer remains in her post or exits under pressure. DOL spokesperson Courtney Parella declined to comment on the investigation, but she said the agency “continues to deliver on the President’s agenda and advance major results for American workers. Any suggestion that the Department’s work has been slowed or distracted is not accurate,” Parella said in a statement. [Politico]

Legislature Advances Dumb Bills

Stop me if you’ve heard this before, but the California Legislature likes anything the State Building and Construction Trades Council sponsors.

AB 1859 (Ortega – D) requires awarding bodies or owners to grant access to joint labor-management committees to enforce prevailing wage and apprenticeship standards. These committees can take legal action if access is denied. Additionally, the bill specifies that courts may impose civil penalties for violations. Passed Assembly Judiciary 9-3 party-line. WECA Opposes

SB 1154 (Reyes - D) gives best-value contracting option to community college districts for projects over $1,000,000. It includes bad safety language that deems any union contractor “safe” regardless of their experience. It includes STW mandates unless covered by a PLA. It mandates a report to the Legislature by January 1, 2030, on its utilization. These provisions will expire on January 1, 2031. Passed by Senate Education on a party-line 5-2 vote. WECA Opposes.  Senator Rosilicie Ochoa Bogh (R-Redlands), whose husband is a subcontractor and recently visited WECA/AGC Riverside, spoke passionately in opposition to the bill’s discriminatory nature. You can watch the hearing here. SB 1154 is the first bill.

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Washington Post Rips FLCA as Anti-Worker

On April 8, the Washington Post’s editorial board slammed the Faster Labor Contracts Act, (HR 5408), saying it would rush newly recognized unions and employers into a compressed bargaining timeline, ending in binding arbitration if no deal is reached. The board added that this could leave workers bound to a contract they never voted on and limit unions' and employers' ability to negotiate terms tailored to a specific workplace.

On March 26, Rep. Donald Norcross, D-N.J., filed a discharge petition to move the Act, which would impose mandatory arbitration on the private sector and allow the federal government to mandate terms of contracts between unions and companies.

Discharge petitions require at least 218 signatures to bypass the traditional legislative process and fast-track a bill to the floor for a full House vote. Assuming all Democrats sign the petition, Rep. Norcross would need just four Republicans to bring the FLCA for a vote. There are currently 17 Republican cosponsors on the bill!

The FLCA is a core provision of the Protecting the Right to Organize Act (PRO Act). Under this proposal, after a union organizing campaign, the parties would have less than 150 days to reach a first contract. If no agreement is reached, a government-appointed arbitrator would dictate the terms. Washington could override private-sector labor negotiations and impose contract terms on American workplaces. This would mark an extreme shift away from an economy built on voluntary agreements, worker choice, and free enterprise. [CDW]

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Sweet Lord, Scott Wiener isn’t Progressive Enough for SEIU!

Per the San Francisco Chronicle (I know, you shake your head that I read the Chron and the New York Times)

“The California Service Employees International Union, with 750,000 members statewide, has pulled its endorsement of state Sen. Scott Wiener over his opposition to Proposition D, San Francisco’s “Overpaid CEO Act,” set to appear on the June 2 ballot. In the race to succeed Speaker Emerita Nancy Pelosi in a San Francisco House seat, the union will endorse only San Francisco Supervisor Connie Chan, who supports the tax. Previously, the union had issued a dual endorsement of Chan and Wiener. Proposition D would tax companies with more than 1,000 employees and $1 billion in annual revenue whose top executives earn more than 100 times the median pay of their San Francisco employees. SEIU locals 2015 and 1021 are sponsors of the Yes on D campaign.”

San Francisco Mayor Daniel Lurie and the city’s Chamber of Commerce oppose the tax. Wiener said he is worried the measure would slow the city’s recovery.

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Kiley to Punish States with High Gas Taxes

California Rep. Kevin Kiley introduced a bill on Wednesday that would withhold federal transportation funding from the five states with the highest gas taxes. Kiley, a former Republican recently turned independent, announced in a post on X that he had introduced legislation to withhold annual federal transportation funding from states with gas taxes exceeding 50 cents per gallon. The move comes after Kiley warned in January that he was preparing to author the proposal, which he framed as an effort to punish California, which has the nation’s highest gas tax at nearly 71 cents per gallon. “This will stop states like California from overtaxing their residents,” Kiley wrote in his X post on Wednesday. The bill would also affect Illinois, Washington, Pennsylvania, and Indiana, which have gas taxes ranging from 54 to 66 cents per gallon. California Republicans have long blamed the state’s Democratic majority for high gas prices and have failed to advance state legislation to freeze the gas tax in recent years.

Kiley’s bill would impose an 8 percent reduction in funding on states from the National Highway Performance Program and the Surface Transportation Block Grant Program, two of the five federal highway formula grant programs.

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Record-High Number of U.S. House Candidates Filed to Run in California After Prop 50 Mid-Decade Redistricting

A record 289 candidates, 5.6 per district, are running for California's 52 congressional districts in the state’s June 2 top-two primaries. That’s the most candidates to run for the U.S. House since 2014 and the most candidates per district since 2022, when California was apportioned 52 districts following the 2020 census.

These primaries are happening against the backdrop of mid-decade redistricting. On Nov. 4, 2025, California voters approved Proposition 50 64.4% to 35.6%. The constitutional amendment allows the state to use a new, Legislature-drawn congressional district map for 2026 through 2030. The state’s Citizens Redistricting Commission will redraw congressional districts in 2031.

According to The New York Times’ Kellen Browning, the new congressional map makes five Republican-held districts more favorable to Democrats. As of April 6, California’s U.S. House delegation includes 43 Democrats, seven Republicans, one independent, and one vacancy.

Of the 289 candidates running, there are 154 Democrats, 97 Republicans, and 38 independent or minor party candidates. The chart below shows how the total number of candidates running and the number per district compare to recent years.



 

California and five other states — Iowa, Montana, New Jersey, New Mexico, and South Dakota — are holding U.S. House primaries on June 2.

Click here to learn more about California's 2026 U.S. House elections.

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Campaign Hijinx

An opponent of Assemblymember Mike Gipson’s bid for the Board of Equalization is accusing his campaign of recruiting a candidate with a similar last name to confuse voters and split the Asian vote, according to POLITICO.

The candidate in question is Zhijing Liu, an undergraduate at the University of Southern California who will be listed on the ballot as a “banker!” Gipson’s campaign flatly denies recruiting her, and a representative told POLITICO it had never heard of her.

Yvonne Yiu, a former Monterey Park City Council member, who is running against Gipson, ties Liu to Gipson through Jose Ugarte, who used to consult for Gipson and was paid by his campaign as recently as last April, according to campaign finance records. Liu’s papers were filed by another USC student, Amir King, who has volunteered for Ugarte. But both Ugarte and Gipson’s campaigns say Ugarte, who is running for the Los Angeles City Council, had no involvement in Liu’s candidacy.

King says the explanation is simple. It was Liu’s own idea to run, and the two got connected through a mutual friend. Liu said in an email that she’s been “working at a bank and wanted to run to explore our state's tax policies to advocate for a better system. I thought the Board of Equalization was a good fit to do that,” she said. She did not respond to additional questions about the allegations, saying she needed to focus on school until finals were over.

Assemblymember Gipson has been a leader on police reform in the state Legislature for more than a decade, frequently citing his background as a Maywood police officer and publicly describing the on-duty murder of his partner.

But the Gardena Democrat has been exaggerating his brief stint as a reserve police officer — and especially his relationship with a fallen officer, John Hoglund, who was gunned down responding to a robbery in 1992.

“He’s definitely, definitely not being honest,” said former sergeant Randy Bundschuh, who was assigned to the murder investigation of Hoglund, whom friends on the force called “Hogie.” He added later in a text message: “He was NOT Hogie’s partner.”

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CA Supreme Court Halts Bianco's Ballot Seizure

The California Supreme Court has ordered a pause in Riverside County Sheriff Chad Bianco's investigation and recount of ballots cast in the November 2025 special election as multiple lawsuits challenging the effort make their way through the courts. Bianco, a Republican and a leading candidate for governor, seized more than 1,400 boxes of ballots and other materials from local election officials earlier this year as part of the investigation, alarming voting rights advocates.

The order came in response to one of Attorney General Rob Bonta's court filings seeking to halt the investigation. Bonta, a Democrat running for reelection this year, is also seeking to stop Bianco's effort in Riverside County court. Democratic gubernatorial candidate Xavier Becerra has filed a similar, separate suit on behalf of voting rights advocates. Bianco last week said he had put the investigation on hold amid legal challenges.

Also on Wednesday, a Riverside County judge unsealed the three search warrants Bianco obtained from a different county judge — with whom Bianco has political ties — that allowed him to seize the ballots. A coalition of media outlets, including CalMatters, had asked to unseal documents, which include the sworn statements Bianco's deputies made to the judge to justify their investigation. [CalMatters]

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Quiz: How Much Do You Know About the U.S. Tax System?

The lengthy and complex U.S. tax code can be difficult to understand. Take a quiz to see how much you really know. Quiz. (I scored 70%)

Legislative Committees Advance Building Trade’s Agenda

It’s been a busy two weeks in the California State Capitol.

The Assembly Labor & Employment committee passed:

AB 1707 (Davies – R) would require the DLSE ECU to permit the application for certification and examination as an electrician to be submitted electronically and would also permit electricians to renew their certifications electronically. The bill would permit an individual who fails the electrician certification examination to reregister for certification and to retake the examination immediately at the next available appointment with the division. Passed 7-0. WECA Supports.

AB 1838 (Berman – D) requires contractors to disclose any history of wage-and-hour violations as part of their bid submission. Contractors who fail to provide these disclosures and supporting documents may be disqualified from the bidding process. Passed 7-0. WECA Opposes

AB 1859 (Ortega – D) requires awarding bodies or owners to grant reasonable access to joint labor-management committees to ensure compliance with prevailing wage and apprenticeship standards. These committees can take legal action if access is denied. Additionally, the bill specifies that courts may impose civil penalties for violations. Passed 7-0. WECA Opposes

The Assembly Education Committee passed AB 1809 (Fong - D). This bill would make certain provisions related to job order contracting for school and community college districts permanent by removing their January 1, 2027 expiration date. Job order contracting allows these districts to hire contractors for project management through a simplified process if they have a PLA that covers all public works. Passed 7-0-1. WECA Opposes

The Senate Labor Committee passed:

SB 909 (Smallwood-Cuevas – D) would exempt contractor DIR registration fee adjustments from the APA, remove the $800 cap, and eliminate the publishing requirement. It also mandates that contractors who violate prevailing wage laws face increased penalties, with 50% of the penalties directed to the State Public Works Enforcement Fund. Passed 4-1. WECA Opposes

SB 1241 (Smallwood-Cuevas D) broadens the circumstances under which skilled and trained workforce requirements apply and includes additional changes. It prohibits the waiver of penalties if monthly compliance reports are incomplete or false. The bill also considers whether a contractor submitted and followed a compliance plan when determining penalties. Additionally, a contractor or subcontractor found guilty of material misrepresentation becomes ineligible for public works contracts. The Commissioner must investigate complaints about workforce violations from labor-management committees. Passed 4-1. WECA Opposes

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Frying Higher

According to a report from the Economic Policy Institute, a DC-based “nonprofit, nonpartisan think tank,” California should raise the $20 minimum wage for fast-food workers to keep pace with inflation. They argue that the $20 wage — the result of a 2023 truce between fast-food companies and labor unions — has improved workers' earnings and has not caused significant job losses. Now, they write that the California Fast Food Council should prioritize a cost-of-living adjustment in 2026.



 

But a new study from researchers at the University of California, Santa Cruz suggests the policy may be producing unintended consequences. According to the report, while more people are applying for fast food jobs due to higher wages, many are not seeing increased hours or even securing employment at all. Researchers found that businesses are adjusting by cutting shifts, raising menu prices, and increasingly turning to automation such as self-service kiosks and mobile ordering systems. (Full disclosure, Richard is a Banana Slug)

“Based on what we’ve found, I think this legislation is a classic case of ‘no good deed goes unpunished,’” UC Santa Cruz Economics Lecturer Stephen Owen said. “There are unintended consequences and knock-on effects, and overall, I think the results have definitely not been as positive as policymakers had been expecting.”

Who do you suppose the California Fast Food Council will listen to?

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Waters Back on Top

Rep. Maxine Waters (CA 43) has all but locked down a second turn as chair of the House Financial Services Committee if Democrats win a majority in November. That means the committee could soon have the oldest leader in its history as it grapples with technological shifts like cryptocurrency, and Democrats look to aggressively ramp up oversight of the president, his family business, and his Wall Street regulators.

Waters faces virtually no opposition, despite a growing chorus of Democrats calling for the end of Capitol Hill’s enduring gerontocracy and a long-shot Democratic challenger back in her district. Privately, some Democrats on and around the committee gripe that she doesn’t do enough to elevate her members or support them with campaign funds from the finance industry. But few are willing to publicly cross her, and she maintains the backing of most senior Democrats on the panel.

But according to the Los Angeles Times, Waters' relatives made ~$1.59 million in 2024 dollars by doing business with companies, candidates, and causes that Waters had helped. They claimed she and her husband helped a company get government bond business, and her daughter, Karen Waters, and son, Edward Waters, profited from her connections. Waters replied, "They do their business, and I do mine." Liberal watchdog group Citizens for Responsibility and Ethics in Washington named Waters to its list of corrupt members of Congress in its 2005, 2006, 2009 and 2011 reports. Citizens Against Government Waste named her the June 2009 Porker of the Month due to her intention to obtain an earmark for the Maxine Waters Employment Preparation Center.

Waters came under investigation for ethics violations and was accused by a House panel of at least one ethics violation related to her efforts to help OneUnited Bank receive federal aid. Waters' husband is a stockholder and former director of OneUnited Bank and the bank's executives were major contributors to her campaigns. In September 2008, Waters arranged meetings between U.S. Treasury Department officials and OneUnited Bank so that the bank could plead for federal cash. It had been heavily invested in Freddie Mac and Fannie Mae, and its capital was "all but wiped out" after the U.S. government took it over. The bank received $12 million in Troubled Asset Relief Program (TARP) money. The matter was investigated by the House Ethics Committee, which charged Waters with violations of the House's ethics rules in 2010. On September 21, 2012, the House Ethics Committee completed a report clearing Waters of all ethics charges after nearly three years of investigation.

Waters had already served in the State Assembly for ten years when I arrived in 1986. My first encounter with her was in 1990 when I staffed a jail bond bill moving through the California Legislature. SB 1094, which was Proposition 147 on the November ballot. To get the bill out of the Assembly, my boss was “asked” to include $25 million to fund youth centers and youth shelters. When I took that back to my boss, the Senator from Riverside, he chuckled, “Was that from Maxine?” I said “Yes.” “Draft it,” he said, “we won’t get it out of her committee without it.”

Voters in November 1990 were tired of approving more bonds and voted “no” overwhelmingly 37% to 63%. We weren’t alone:


 

Voters to Decide Fate of 80 Local Tax and Bond Measures in June

In local elections across California in June, voters will consider 80 local tax and bond measures, totaling $738.5 million in direct new taxes if approved, along with additional property taxes to repay $2.6 billion in bonds, plus interest.

This total includes San Francisco’s Measure D, which would raise taxes on businesses based on the difference between executive pay and median employee wages. It does not include tax proposals that have not yet qualified for June and are moving toward the November ballot, including two major business taxes – a similar executive pay tax in Los Angeles and a separate San Francisco measure to fund a public bank by increasing gross receipts taxes on financial institutions.

After reviewing election materials from the 58 counties and consulting local election officials, CalTax found that parcel taxes make up 29 of the 80 measures. School bond measures account for 22, while 19 propose sales or transactions and use taxes, three target businesses, and four would increase transient occupancy (hotel) taxes.

Click here for the complete list of local tax measures, compiled by CalTax.

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Only Days to Comply with New Emergency Contact Rule

Employers must provide their employees with the opportunity to designate an emergency contact and to disclose whether that emergency contact should be notified if the employee is arrested or detained under the various circumstances described in Labor Code §1555. More

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California Lawmakers' Luxury Freebies

Trips overseas. Free spa treatments. Ritzy resort stays in Hawaii. Fancy dinners and premium seats at sporting events. These are just some of the freebies California lawmakers reported receiving last year in the mandatory reports they file with state ethics regulators. And it's all perfectly legal under California laws, despite giving powerful moneyed interest groups unfettered access to lawmakers that an average voter would never have. Story


 

The United States Is Adding to the National Debt Faster Than Ever

We just passed $39 trillion in national debt, only five months after we passed $38 trillion. It is not your imagination: debt is accumulating at a faster pace. Story

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No Solar for You!

A California court ruled that regulators acted within their discretion when they established a less generous system for compensating rooftop solar owners for the power they produce, striking down a challenge from solar advocates. The California First Appellate Court issued an opinion that struck down a lawsuit the Center for Biological Diversity, Environmental Working Group and The Protect our Communities Foundation filed against the California Public Utilities Commission. The suit challenged the third-generation net metering system that the CPUC adopted in 2022 to compensate rooftop solar users less, ensuring they paid a larger share of the fixed costs of maintaining the electricity grid.

The ruling snuffed out a glimmer of hope for the rooftop solar industry, which has been fighting the less-generous so-called NEM 3.0 tariff since its adoption. Rooftop solar installations fell significantly in California after the policy went into effect. “At a time when California needs to accelerate local renewables to combat a federal obsession with fossil fuels, this is a huge step in the wrong direction,” Roger Lin, a senior attorney with the Center for Biological Diversity, said in a statement. [Politico]

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Trump-Backed Utah Redistricting Repeal Fails to Make Ballot

A Republican-led initiative to repeal an anti-gerrymandering law in Utah will fail to make November’s ballot, despite garnering support from President Donald Trump, Turning Point Action and a host of other GOP influencers and organizations.

The ballot initiative, which sought to repeal a 2018 law that created an independent redistricting commission in the state, fell short of the required signature threshold after a coordinated signature-removal campaign, according to data released Thursday by the state election office.

The initiative’s failure, first reported by the Deseret News, is a major blow to Republicans in the deep-red state, who attempted to overturn a new judge-ordered congressional map that hands Democrats one safe blue seat. Repealing the anti-gerrymandering law would have allowed the Republican-controlled legislature to reinstall a more favorable map ahead of the 2028 elections. [Politico]

 

PLAs for Data Centers?

As OpenAI continues its data center building spree, CEO Sam Altman and the North America’s Building Trades Unions said in a statement that they wanted to ensure AI infrastructure build-outs support union careers and create economic opportunity in the communities where the infrastructure is built.

“No one is better positioned to deliver the scale of construction needed for the advanced AI facilities, modern transmission systems, and new energy generation driving America’s economic growth,” said Sean McGarvey, president of the NABTU, in the joint statement with OpenAI. The statement said the two sides would “seek to foster constructive engagement” on workforce development, labor standards and other issues.

But the agreement does not commit to using union labor at data centers. “Contracting decisions remain the decision of the site developers,” said OpenAI spokesperson Jamie Radice. “We know America's best-trained, skilled workforce is going to help us to get it done," she added.

Altman, speaking at an event that day, highlighted the need for “skilled trades workers.”

“No matter where the choke point in the supply chain is at any one time, when I talk to people about what it would take to accelerate [data center construction], it is more skilled trades workers to build out all of this infrastructure,” Altman said onstage at the BlackRock Infrastructure Summit in Washington D.C.

Speaking at the BlackRock event, McGarvey said he hoped to get his unions involved in long-term planning of data center construction. The building trades union sees the partnership with OpenAI as an opportunity to get its skilled workers in the field on massive, well-funded projects.

“One of the last things that's decided, particularly in hyperscalers and data, is contractor selection and labor strategy," McGarvey said. “We have the people with the prerequisite skill sets in the geography where we need them on the day that we need them on the job site.” [Politico]

In an unrelated but encouraging story, State Senator Stephen C. Padilla amended his Senate Bill 887 to clarify that data centers are not ministerial projects exempt from CEQA and do not qualify as advanced manufacturing facilities. The bill would also allow data centers to be eligible for Environmental Leadership Development Project (ELDP) certification if they meet the criteria, along with additional requirements specific to data centers. As introduced, one of those requirements was, surprise, a PLA. WECA objected, and Padilla struck the requirement. Thanks, Senator Padilla!

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Hilton Helps Out

Republican Steve Hilton may be alleviating Democratic fears of a catastrophic lockout in the governor’s race.

A new UC Berkeley Citrin Center for Public Opinion Research-POLITICO poll finds Hilton consolidating GOP support in California’s governor’s race, which would decrease the odds that Democrats fail to place as the top two vote-getters in the June jungle primary.

Hilton leads with 19 percent of likely voters. Behind him is a group of virtually tied candidates— Democrat Tom Steyer at 13%, and Democrats Katie Porter and Eric Swalwell and Republican Chad Bianco each at 11%.

Democrats have panicked that their large field could splinter the party’s vote and have unsuccessfully pressured lower-performing candidates to drop out of the race.

But the prospect of Republican voters coalescing around Hilton could offer Democrats some relief. Democrats outnumber Republicans so heavily in California that they are almost certain to win the governorship as long as one of them advances from the primary. The best chance for Republicans is that Hilton and Bianco split the GOP vote relatively equally, both finishing in the top two and advancing to November.

“If Hilton starts taking votes away from Bianco within that solid Republican pool, that would make it less likely,” said Jack Citrin, a UC Berkeley political science professor and co-director of the poll.

The findings show that Steyer, Swalwell and Porter have firmly established themselves in the top tier of Democratic contenders. The remaining Democrats are stuck in the mid-to-low single digits, with Xavier Becerra at 5%, Antonio Villaraigosa at 4%, Matt Mahan at 3%, Betty Yee at 2% and Tony Thurmond and Bob Bartlett both with 1%. Ian Calderon, who dropped out after the poll was conducted, had 2 %.

The rankings differed substantially from a survey of POLITICO’s audience of key political and policy influencers in the state, including political staffers, lobbyists, policy advisers and others. Swalwell led with 22%, followed by Mahan at 14%, Steyer with 13% and Porter at 12%.

[Politico]

In a related story, Hilton and Gloria Romero, who is running for lieutenant governor, announced that former US Rep. John Duarte was Hilton's "selection for California Secretary for Natural Resources." They explained "their vision for restoring abundance in California's natural resources through improved water management, healthier forests, and policies that support working landscapes such as farms and timberlands," and highlighted "the importance of water infrastructure and the role of expanded storage and better management in addressing California's ongoing water challenges," at an event at Friant Cove Recreational Area.

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Nonprofit Paid $3.7 Mil to Jennifer Siebel Newsom

Gov. Gavin Newsom’s wife, Jennifer Siebel Newsom, reportedly has paid herself and her company more than $3.7 million over the past decade from a nonprofit organization. According to IRS filings obtained by the Daily Mail, Siebel Newsom has funneled the money from the nonprofit organization Representation Project to herself and her company, Girls Club LLC. Story

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Time for a Job Search

The White House told Labor Department chief of staff Jihun Han and deputy chief of staff Rebecca Wright to resign or else be fired amid an IG probe into allegations that they mistreated staff and misused tax dollars, New York Post’s Josh Christenson scoops. The senior aides, who were Labor Secretary Lori Chavez-DeRemer’s top deputies, left the agency on March 2, after being placed on administrative leave in January. The Post reports that they were given a choice of “resigning or being fired by the White House Monday night.” Han, Wright, and the White House did not immediately respond to the New York Post for comment.

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Fresno Concrete Drivers Vote to Remove Teamsters Representation

Cement truck drivers for the CalPortland Ready-mix Fresno facility voted to end their union representation last month. The Ready-mix drivers voted to end their union representation, concluding a month-long effort to remove Teamsters Local 431 from their workplace.

In a Jan. 29 vote, workers voted 9-7 to decertify the union that had represented them for more than two decades, according to results from the National Labor Relations Board. The decertification petition was filed in October 2025 by Ready-mix driver Darrell Dunlap Sr., who received legal assistance from the National Right to Work Foundation. Story

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Nix on Penalties

A federal appellate court nixed a landmark National Labor Relations Board ruling that sought to impose steep penalties on employers who break labor law during organizing drives — including ordering them to bargain with units that lose the ensuing election.

A split judge panel ruled Friday that the company behind Woodford Reserve bourbon could not be compelled to bargain with a Teamsters unit representing workers at the whiskey-maker under NLRB’s 2023 Cemex decision, which it said was “created through an improper exercise of the Board’s adjudicatory authority.” The dispute stemmed from the company’s conduct during the 2022 unionization push, which ended in a lopsided loss for the union, which they allege was due to management’s illegal tactics.

The two judges who ruled against the NLRB were appointed by George W. Bush, and the dissent was written by a Joe Biden appointee. The panel had appeared skeptical of the NLRB’s interpretation at the oral arguments late last year.

Coalition for a Democratic Workplace (CDW)’s statement on the decision is available here. CDW filed an amicus brief in the case in April 2025.

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LWDA’s New Proposed PAGA Regulations

On February 6, 2026, the California Labor and Workforce Development Agency (“LWDA”) provided a Notice of Proposed Rulemaking (“Notice”) to adopt new Private Attorneys General Act (“PAGA”) regulations intended to supplement the legislative reforms to PAGA in 2024. The proposed rulemaking, in its current form, is great news for employers that have been inundated with frivolous PAGA filings. The proposed regulations require stricter notice requirements, apply special requirements to high-frequency and vexatious filers, and call for additional disclosures related to PAGA settlements. Story and Story

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Utah Lawmakers Pass Water Reporting Requirement for Large Data Centers

Both the Utah House and Senate signed off on a proposal requiring large data centers relocating to Utah to report their annual water use to state officials. … “The market itself has reacted to the concern nationwide about water use,” said State Representative Jill Koford, R-Ogden, who sponsored the bill. “In the second-driest state in the nation, I think it’s good for us to set the tone nationally.” … Koford’s bill would require data centers that are at least 10,000 square feet and use at least 75 acre-feet of water a year to report their water usage to the state. That water usage data would also be accessible to the public.

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Permits? We Don’t Need Stinking Permits!

Those FBI agents NOT fired for their investigations, now deemed offensive, will receive training insights and techniques from UFC fighters this weekend, in what FBI Director Kash Patel is calling a historic seminar. It’s unclear if they will be in a cage, but tickets to watch the training are available at www.trump.com. And over at the White House, the UFC is pushing forward with plans to hold a fight on the South Lawn on June 14 without a permit from the D.C. Combat Sports Commission. 

Federal Court Rejects GOP Bid to Block New Utah Congressional Map, Likely Netting Dems a Seat

A federal court rejected a bid by Utah Republicans to block a new court-ordered congressional map, dealing a major blow to the Republican Party following a yearslong redistricting saga. The decision means Democrats are likely to net one seat in the state, which currently has a four-person all-GOP House delegation, absent late intervention by the Supreme Court.

Republican lawmakers in Utah passed a congressional map in October after state court Judge Dianna Gibson ruled that the state could not use previous lines that carved up Democratic stronghold Salt Lake City. Gibson later rejected that map, ruling in November that it “fails to abide by and conform with the requirements” of Proposition 4, a ballot initiative passed by Utah voters in 2018 that created an independent redistricting commission and specific redistricting parameters intended to prevent partisan gerrymandering.

Republicans are hoping to repeal the redistricting proposition via a ballot initiative in this fall’s elections.

The loss for Utah Republicans comes as the GOP pushes to overhaul congressional maps ahead of this fall’s elections at President Donald Trump’s urging. Republicans have redrawn maps in their favor in states from Texas to North Carolina, and Democrats have, in turn, pushed their own gerrymanders in several blue states, including California and Virginia.

Katharine Biele, president of the Utah League of Women Voters, which brought the initial lawsuit against the Legislature, called the GOP’s efforts “futile attempts to undermine” the map. “Utah voters should not have to navigate uncertainty to participate in their elections,” Biele said in a statement. “We are pleased the court protected this fair map, and we remain focused on protecting voters’ ability to make their voices heard.” [Politico]

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Cal/OSHA Proposes State Analog to Worker Walkaround Rule

Consistent with its tradition of dropping surprise regulatory proposals near the end of the day before a holiday weekend, Cal/OSHA published a formal proposal on Friday the 13th, 2026, to promulgate a California version of federal OSHA’s so-called “worker walkaround rule.” That rule allows non-employee third parties to serve as an employee representative during an OSHA workplace inspection, provided that the third party is reasonably necessary to conduct an effective and thorough inspection. California employers should take note of this development and monitor it closely. A public hearing is scheduled for April 1, 2026, during which interested individuals may present statements or arguments on the rule. Read More

This effort may have a legislative analog. AB 1859 (Ortega D-Hayward) would require an awarding body or owner to provide reasonable access to representatives of a joint labor-management committee to monitor compliance with prevailing wage and apprenticeship requirements. The bill would authorize the committee to bring an action against an awarding body, contractor, or subcontractor that willfully denies the committee’s representative reasonable access.

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Audit Axe

California lawmakers killed dozens of proposals that the nonpartisan state auditor had recommended passing, according to a CBS News California analysis. Newsom vetoed at least a dozen more auditor-backed bills.

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Arizona Moves its Primary from August to July

On Feb. 6, Arizona Gov. Katie Hobbs (D) signed HB 2022, a bill that moves Arizona’s primary election from the first Tuesday in August to the second-to-last Tuesday in July, starting this year. As a result, Arizona’s 2026 primary will be held on July 21 instead of Aug. 4.

The Arizona House approved HB 2022 unanimously, and the state Senate approved it 27-1.

A statement from the Arizona Senate Republicans said the move was needed to address timing conflicts affecting military and overseas voters, giving them more time to return their ballots before the general election.

The legislation allows signatures gathered on petition forms with the old primary date to be valid. It also:

·        Changes the time for officials to compare a provisional ballot with a list of early voters from five business days to five calendar days.

·        Changes the time for officials to compare a provisional ballot with the polling place roster from 10 calendar days to seven calendar days.

·        Allows county party chairs to appoint election observers for ballot replacement locations.

·        Allows county party chairs to appoint challengers at polling places and early-voting centers.

This is the second time in recent years that Arizona has moved its primary election date. In 2024, Hobbs signed a law moving up that year’s primary by a week to July 30.

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California’s Proposed Rulemaking Provides Cautious Optimism to Employers Amidst Continuing Abuse of Private Attorneys General Statute

On February 6, 2026, the California Labor and Workforce Development Agency (LWDA) issued a Notice of Proposed Rulemaking announcing its intent to add a new chapter to the California Code of Regulations to implement the Private Attorneys General Act of 2004 (PAGA). The proposed regulations seek to significantly tighten how employees (or their counsel) must submit PAGA Notices to the LWDA, including:

• Using an LWDA form with fillable fields requiring specific pieces of information about the employee and their claims;
• Factual specificity, including background information regarding the employee’s employment, and the facts and theories supporting each alleged Labor Code violation;
• A certification, signed by the employee or attorney, verifying the claims have legal and evidentiary support.

For employers, this could mean fewer boilerplate “catch-all” notices, more defined or limited allegations at the outset, and, in turn, a more meaningful opportunity to respond. Story

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MPD at FPB

District of Columbia police searched Labor Secretary Lori Chavez-DeRemer’s offices at the agency’s headquarters this month as part of its investigation of sexual assault allegations against her husband, Shawn DeRemer, according to three DOL officials. Employees who work in the secretary’s suite were ushered out of their offices temporarily Feb. 5, and Metropolitan Police Department personnel entered and looked around, according to the DOL officials, who were granted anonymity to discuss the ongoing investigation. Chavez-DeRemer was aware of the decision to bar her husband from the building but was not involved in the discussion that led to it, according to current DOL officials.

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Trades Split

While the Building Trades are backing another candidate to succeed Nancy Pelosi in Congress, the union for Sheet Metal Workers is breaking ranks and endorsing state Sen. Scott Wiener. The move by Local 104, which represents 10,000 sheet metal workers, is a plot twist after Supervisor Connie Chan picked up the sole backing of the San Francisco Building and Construction Trades Council earlier this week.

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OFCCP Poised to Produce Contractors’ EEO-1 Data Following Losses in Litigation

Starting in 2018, the Center for Investigative Reporting (CIR) and a CIR reporter have been fighting to force OFCCP to disclose EEO-1 reports that have been filed by federal contractors. These contractors have operated with the understanding that the government must keep such reports confidential. In July 2025, the Ninth Circuit held that the EEO-1 data must be made public. Pursuant to agreements between OFCCP and CIR, OFCCP is now getting ready to produce contractors’ consolidated EEO-1 reports from 2016 through 2020. Absent further challenge, the disclosures were scheduled for February 25, 2026. Read More

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Merced City Councilman Darin DuPont…

is throwing his hat in the ring for one of the Golden State's last remaining Republican-less State Senate battles. DuPont recently announced his candidacy for the 14th Senate District, currently held by Sen. Anna Caballero (D-Merced). The first-term Merced lawmaker joins a field fraught with Democratic infighting as Asm. Esmeralda Soria (D-Fresno) was already slated to face off against Sanger City Councilwoman Esmeralda Hurtado, who has received backing from Soria's colleague and neighbor, Asm. Joaquin Arambula (D-Fresno).

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Draft Cap-and-Trade Rules Draw Opposition from Labor Over Refineries

Chris Hannan, president of the State Building and Construction Trades Council of California, told the California Air Resources Board in a letter the union was concerned the draft rewrite would drive more refineries out of state by imposing strict in-state pollution limits.

“Unfortunately, CARB’s current proposal does not reflect our understanding that regulations should be designed to ensure our employer companies participating in the cap-and-invest program can continue operating within the state,” he wrote. “If these regulations are finalized as currently proposed, they would lead to more refinery closures, costing our members their jobs and middle-class livelihoods for their families, while also causing higher pump prices for all Californians.”

The letter marks a major turnaround from September, when the same union proved pivotal in extending the cap-and-trade program by backing AB 1207 in the waning days of the session, largely because it sets aside $1 billion in annual revenue for high-speed rail.

The new rules, once finalized, will govern California’s signature climate policy through 2045, during a period when current emissions-cutting trajectories are not keeping pace with the sharper reductions required in the coming years to hit state climate goals.

But they are also landing as the oil and gas industry seeks to capitalize on warnings that shrinking in-state refining capacity could spike prices — an argument that gained traction last year when Newsom and progressive lawmakers backed expanded oil production in Kern County.

The agency is taking public comments on its draft rules through March 9. It is then planning on bringing final rules to the board for a vote sometime in the second quarter of 2026. If approved, the new rules would go into effect on Sept. 1.

Republican to Introduce Federal Bill Punishing States with High Gas Taxes

Last time we mentioned a call by California’s Senate Republicans for Gov. Newsom to convene a special legislative session to address high gasoline prices and respond to the impending shutdown of one of the state’s eight remaining gasoline-producing refineries. Recently, Congressman Kevin Kiley announced he is drafting a bill to reduce federal transportation funding for states with gas taxes above 50 cents per gallon. He framed the forthcoming legislation as an effort to punish California, which has the nation’s highest gas tax at nearly 71 cents per gallon. “This bill sends a clear message: states that overtax their citizens to compensate for inefficient spending should not expect unlimited federal support,” Kiley said in a statement. “If Sacramento wants Washington’s help, it should stop punishing drivers.” The bill would also impact Illinois, Washington, Pennsylvania and Indiana, which have gas taxes ranging from 54 to 66 cents per gallon. Kiley, whose congressional district was transformed from a safe Republican to an at-risk district, is looking at fellow Republican Tom McClintock’s seat, a much more Republican district. Kiley was also one of the six Republicans who voted with Democrats to repeal Trump’s tariffs on Canada.

Since Kiley is hinting at a run for Congress in the 5th Congressional District, Rep. Tom McClintock (R-Elk Grove) fired a return volley at his northerly neighbor. He announced he had won the backing of the local GOP committees, which comprise 97% of the population in his district, drawing an early line that a primary challenge from Kiley will be an uphill battle. [Politico]

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Of the $183 Million Raised Nationwide for 2025 Ballot Measures, 94% Went to California Proposition 50

In 2025, campaigns supporting and opposing 30 statewide ballot measures in nine states raised $183.15 million. Ninety-four percent of that fundraising was either for or against California Proposition 50, which authorized the state to use a new congressional district map.

Here’s a closer look at ballot measure campaign finance from 2025 now that the final reporting deadlines have passed.

Campaigns supporting and opposing Proposition 50 raised $172.7 million, with $124.9 million going to PACs supporting the proposition and $47.7 million to PACs opposing it.

Top donors supporting the ballot measure included the House Majority PAC ($16.5 million) and Fund for Policy Reform ($10 million). The top donors opposing the measure were Charles Munger, Jr. ($36 million) and the Congressional Leadership Fund ($5 million).

Since 2015, California Proposition 50 has been the most expensive ballot measure in an odd-numbered year. The second-most-expensive odd-year ballot measure since 2015 was Maine Question 1 in 2021. In that election, proponents and opponents raised a combined $99.9 million.

New Report: National Debt Outlook Gets Worse as Interest Costs Exceed $1 Trillion Annually

Today, the Congressional Budget Office (CBO) updated its budget and economic projections, which show that the United States remains on an unsustainable fiscal path — and unfortunately the national debt outlook worsened from last year’s projections.

Revenues over the 10-year period are lower than projected for 2025 due to the One Big Beautiful Bill Act (OBBBA). In addition, mounting debt and higher interest rates have pushed up interest costs, which threatens to crowd out other priorities. Finally, longstanding demographic pressures continue to weigh on the fiscal outlook. Taken together, CBO’s report should serve as an urgent warning for lawmakers about the need to address the debt and get the United States on a stronger fiscal path.

You can read the report here.

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Moderate vs. Progressive Race in Valley Heats Up

California's 22nd Congressional District, near Bakersfield, is one of the handful of districts Democrats hope to pick up during the 2026 midterm elections, where a conservative leaning, mostly Hispanic populace voted for Trump in 2024.

But two Democratic candidates making a bid for the seat highlight the rift among the party over how best to oust the district's GOP incumbent, writes CalMatters' Maya C. Miller.

The labor union SEIU California, several California legislators, and the political action committee Emily's List support Assemblymember Jasmeet Bains. The Bakersfield Democrat and physician is one of the more moderate members of her party in the Legislature and was the only Democrat to vote against the plan to fast-track the special election for Proposition 50.

Meanwhile, leaders of the district's local county Democratic Party, the Working Families Party, and U.S. Sen. Bernie Sanders of Vermont have endorsed Randy Villegas, a political science professor. Though new to politics, Villegas backs progressive policies, including Medicare for All and raising the hourly minimum wage to $25. Story

Smart Wearables: Bridging the Gap Between Workplace Safety and Productivity

• Communication-enabled wearables integrate two-way radio and cellular technology into personal protective equipment to enhance workplace safety through hands-free connectivity.
• These devices utilize bone-conduction technology and noise-canceling microphones to ensure clear communication in loud industrial environments.
• Real-time audio alerts and GPS tracking allow safety managers to monitor worker locations and respond immediately to potential hazards.
• By reducing the need for hand-held devices, these wearables help prevent distractions and accidents during complex tasks.

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More on Lori Chavez-DeRemer

Taxpayers paid nearly $100,000 to resolve an employment discrimination claim that arose from the former congressional office of Labor Secretary Lori Chavez-DeRemer, according to a report from the Office of Congressional Workplace Rights.

The OCWR annual report lists the amount of the award or settlement — $98,650 — and that it was tied to a part of federal statute that bans discrimination based on a worker’s race, color, religion, sex, national origin, disability status or age. The report was uploaded to the office’s website.

It’s the largest award or settlement from a House office since at least 2019, according to past reports, and the secretary’s was the only House office to have an employment discrimination claim payment in 2025.

Awards and settlements that resolve claims under a law are paid from a Treasury Department account that receives appropriations for that purpose, according to a Congressional Research Service report.

The report does not indicate whether Chavez-DeRemer, an Oregon Republican whose one term ended Jan. 3, 2025, was involved in the conduct related to her congressional office.

An internal investigation that sidelined her chief of staff, deputy chief of staff, and a member of her security detail hasn’t tarnished Chavez-DeRemer’s star status in the White House. A month after the New York Post broke the story, Chavez-DeRemer’s standing with the White House remains secure.

"I don’t get the sense from anybody that anybody gives a shit,” a person close to the White House, who requested anonymity to discuss the administration's thinking, told POLITICO. “This has not drawn the ire of anybody, like, 'Oh my god, she’s a problem, we have to deal with her.' I think as long as it stays contained, it’s fine."

Another Republican who regularly interacts with the administration on workforce issues said that the White House “seemed pretty nonchalant about the whole thing.”

Story

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California’s Retention Reform on Private Construction Projects

Retention has long been a contentious issue in California construction. Traditionally, owners withheld retention of 10% from each progress payment until completion, arguing it was necessary to ensure performance, quality and timely delivery. Contractors and subcontractors, however, often struggled with cash flow, payroll, and material costs while waiting months—sometimes even years—for withheld retention.

Recognizing the financial challenges contractors and subcontractors face, the California legislature passed Senate Bill 61, now codified under California Civil Code Section 8811 and effective January 1, 2026, limiting retention to 5% on private works of improvement, aligning with the public works standard in place since 2012. The law’s intent is clear—ease financial strain on contractors and subcontractors while still providing owners with security (albeit reduced) with respect to project completion. More

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Ouch, Thanks for Playing in Santa Clara

Seahawks quarterback Sam Darnold is being charged a 'jock tax,' which requires him to pay the State of California more in income taxes for his performance in Super Bowl LX than he earned from the game. Here's a look at the backwards tax approach for the athletes playing in the Golden State-hosted Super Bowl. Story

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Bonds for Research?

California lawmakers could ask voters in November to pass the largest single-purpose general obligation bond in state history, a proposal to fund research at California universities that would test not only the public’s appetite for borrowing, but the very idea of what kind of expenses a bond should be used to pay for in the first place.

When California has turned to bond measures in the past, it has done so almost exclusively to fund infrastructure. That’s because buildings usually last for decades, making long-term borrowing to pay off the loan with tax revenues a safe bet.

Only twice in recent memory has the state employed bond measures for research, authorizing $3 billion for stem cell research in 2004, after President George W. Bush blocked the use of federal grants for studying human embryonic stem cells, and approving $5.5 billion more for the same purpose in 2020.

The bond lawmakers are pushing at the Capitol now would cost $23 billion.

The bond, like the 2004 measure’s response to Bush, is in direct response to the policies of a Republican president, this time Donald Trump, and his cuts to scientific research funding. Spearheaded by state Sen. Scott Wiener, with the support of the University of California and UAW 4811, a union representing thousands of academic researchers, the bond would provide grants and loans from a state-backed foundation to universities and other research institutions to insulate them from federal funding cuts. The Trump administration has currently suspended $230 million in research funding to the UCs and another $160 million to the Cal State University system, launching several investigations into alleged antisemitism and other civil rights violations on campuses.

“This is really fucking important,” said Lorena Gonzalez, president of the California Labor Federation, at recent event in Sacramento boosting the bond proposal.

Already, nearly a third of the state’s Legislature, including multiple Republicans, have signed onto the proposal, which needs approval from a supermajority to reach Gov. Gavin Newsom’s desk. Many lawmakers were at the event at the Labor Fed’s downtown office space, where attendees helped themselves to wine and a cheeseboard while learning about projects from researchers at the UC, Stanford and USC paused by the Trump administration’s cuts.

To sweeten the appeal, Wiener added a new provision last month that would give the state a cut of licensing fees from inventions developed with bond money.

One potential competing bond would also benefit higher education: a more traditional infrastructure payout for the UC and CSU systems, a priority for both universities after they were excluded from a $10 billion school bond two years ago and have not benefited from a bond measure in 20 years.

Assemblymember David Alvarez, who is carrying that more traditional measure in the statehouse, said that using bonds for non-infrastructure purposes would be “a major conversation” for state leadership. “I'm not saying yes or no, but it's definitely something the governor needs to weigh in on whether he wants to use bonds in this way,” Alvarez said.

But the state had done it once before, when Bush was in the White House. This time, Alvarez said, “We also definitely need to acknowledge the federal threats, right? And so that's very real.” [Politico]

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Crypto Slumps

The deregulatory Trump bump has now been fully erased. Bitcoin tumbled below $65,000 as the unwinding of leveraged bets and broader market turbulence deepened a selloff that’s wiped out all of the gains since the crypto-friendly Republican returned to the White House.

The token fell as much as 11% Thursday to $64,944, the lowest since October 2024. The rout has erased nearly half of Bitcoin’s value since it reached a record four months ago and has spread to other tokens, related exchange-traded funds and companies like Strategy that hold vast sums of coins.

“The fear and uncertainty across the market is evident,” said Chris Newhouse, head of business development at Ergonia. “Without conviction-based buyers willing to lean into the selling, each wave of ETF redemptions and liquidation cascades.” He said that’s “amplifying the magnitude of each leg lower and reinforcing the defensive positioning that’s keeping organic demand on the sidelines.” [Bloomberg]