Alaska Contractor Challenges Trump/Biden PLA Mandate on Federal Projects
An Alaska mechanical contractor filed suit to challenge the federal PLA mandate as exceeding statutory authority and violating the non-delegation doctrine. The company is fighting to restore both its right to compete for federal work and the proper separation of powers between Congress and the president. Both the Biden and Trump administrations have claimed authority under the Procurement Act to impose a PLA. But Congress only authorized the executive branch to oversee the government’s internal procurement process, not to impose regulatory mandates on contractors’ labor policies that Congress never contemplated or approved. And if the Procurement Act is the blank check the president claims it is, it violates the constitutional prohibition against delegating lawmaking power to the executive branch.
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Utah Becomes the Sixth State with a New Congressional Map Ahead of the 2026 Elections
Utah became the sixth state to adopt a new congressional map ahead of the 2026 midterms. On Nov. 10, a district court judge rejected a redrawn map submitted by the Utah Legislature. It would have maintained four Republican-leaning districts. Instead, the judge adopted a proposal from the plaintiffs in the case that shifts one of the state’s four congressional districts towards Democrats. Currently, all four members of the Utah U.S. House delegation are Republicans. According to court filings, the new Democratic-leaning Salt Lake City district is approximately 43% Republican. Taken together with redistricting in California, Missouri, North Carolina, Ohio, and Texas, Utah’s map could yield a net gain of 3 districts nationwide. Previously, California voters approved Proposition 50, allowing a new map that makes five districts more favorable to Democrats according to the 2024 presidential results to take effect in the state. The new Texas map shifts five Democratic districts toward Republicans according to the 2024 presidential results. New maps in Missouri and North Carolina each aim to add one more Republican district. Ohio’s new map makes two Democratic-held districts more Republican, according to recent election results shared by the redistricting commission.
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Ruh-roh
Politico reports the California Legislative Analyst’s Office (LAO) released its fiscal outlook for the 2026-2027 budget year, and the state’s finances are not looking good. The LAO estimates Gavin Newsom and the Legislature will be dealing with an $18 billion shortfall, about $5 billion more than the governor’s administration projected in June, even with revenue exceeding expectations. It also projects the state’s deficit will balloon to $35 billion annually starting during the 2027-2028 budget year.
The office suggested California may need to take more drastic measures than in recent years, as “the state has used most of its budget resiliency tools to address prior deficits.”
One factor contributing to the state’s weak budget situation is a potential AI bubble that the LAO warns could burst. This has been the case with past tech innovations that led to significant investments and stock gains. While the AI market is boosting state income tax revenue, the office sees signs of an “overheated” market that could trigger a boom-and-bust cycle, with “dire” consequences for the state.
Newsom’s Department of Finance will release its own financial projections in January, when the governor presents his initial budget plan. In the past, his administration’s outlook has differed from the LAO’s estimates, and the governor has been critical of gloomy coverage of the nonpartisan analyst’s annual fall outlook that could reflect poorly on him.
AI as a Recruiting Tool for Attracting Next-generation Construction Workers?
The construction industry is at a critical juncture. Persistent labor shortages, an aging workforce, and high turnover rates are forcing general contractors to rethink how they attract and retain talent. To meet demand in 2025 alone, the industry will need to hire an estimated 439,000 additional workers, according to the Associated Builders and Contractors.
At the same time, the digital transformation in construction is gaining momentum as AI reshapes the global economy. A recent McKinsey report found that 92% of companies plan to increase their AI investments over the next three years. Firms that embrace advanced construction AI not only improve project outcomes but also position themselves as desirable employers for the next generation of workers.
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Weather Machine Politics
Utah is a Republican state, and many of its officials support long-running weather modification programs that help with the state's water supply. Unfortunately for them, the MAHA movement opposes these programs, especially cloud seeding. And the movement has a powerful ally inside the Trump administration: “I’m going to do everything in my power to stop it,” RFK Jr. told meteorologist, psychic, and brain surgeon Dr. Phil in April. NOTUS’ Margaret Manto and reporter Addy Baird from Washington Bureau Initiative partner The Salt Lake Tribune report on how the GOP’s changing politics around science are playing out in Western states.
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5 Tips for Dealing with Law Enforcement at Work
Every employer should have a law enforcement response plan, experts said recently at the American Bar Association’s annual labor and employment law conference.
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UC Construction Criticism
Politico reported that “A union representing University of California employees is accusing the school system of overspending on construction projects while at the same time laying off its members because of financial pressures. The University Professional and Technical Employees, which counts in its ranks more than 18,000 healthcare workers, researchers and technical support staff, released a report blasting the university for what it described as ‘extravagant spending’ on hospitals and other health care facilities – a claim university officials reject.”
In leveling the allegation, the union pointed to the UC’s ongoing funding for new construction, $20.8 billion in active projects, $31.6 billion in planned projects, and $1.4 billion earmarked for land acquisitions through 2030. The spending, it said, exceeds industry standards and exceeds what was spent on previous projects the university officials identified as similar in scope.
The outlay is particularly troublesome, the union said, given the university’s decision to lay off hundreds of healthcare workers this year, including 230 at UC San Diego Health and 200 at UCSF Health. UC officials have blamed the layoffs on ongoing threats to federal funding stemming largely from the impact of the mega-spending bill Congress passed in June, saying the “federal impacts to health care” and "diminished reimbursements for services” made the staffing cuts necessary.
“We do not have a problem with investing in capital projects,” Dan Russell, president of UPTE, said in an interview. “But when it comes at the expense of investments in frontline staff, investments in patient care, in research and education, that's where we have a problem.” I wonder if Dan would recommend UC eschew PLAs to reduce UC construction costs?
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Fallout
So far, gubernatorial candidate Xavier Becerra has escaped the bright spotlight focused on Gov. Gavin Newsom in the money pilfering scandal involving their former top aides. But that could change. It seems only a matter of time before one of Becerra’s campaign rivals seizes the federal fraud case for attack fodder. I can hear it already: “If the man who wants to be governor can’t protect his own political funds, he shouldn’t be trusted to safeguard your tax money.” That might not be fair, but this is big-time politics. And the word “fair” isn’t in the political dictionary. Neither Becerra nor Newsom is implicated in any wrongdoing.
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Contractor Backlog Slips, Strength Depends on Sector
The data spotlights the difference between contractors with work tied to growth sectors and those exposed to softer areas of the construction industry. For example, nearly 65% of contractors think construction activity is contracting, said Anirban Basu, ABC chief economist. That outlook aligns with October’s lowest backlog reading since May. At the same time, 23% of firms expect sales to decline in the next six months, the largest share in more than a year.
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More 2026 Candidates
Eric Swalwell’s gubernatorial campaign appears imminent and not just because a fundraising page for his campaign was posted on the Democratic platform ActBlue before being taken down Sunday.
Allies have for weeks been circulating polling emphasizing his opening to run as a more moderate alternative to Katie Porter. The Bay Area representative has been making overtures to California labor and other interest groups regarding a run, a key step toward overcoming skepticism in Sacramento fueled by his poor presidential primary performance in 2019 and lack of roots in the state capital. He spent election night not in Washington or his district, but at a local party event in Los Angeles. Alex Padilla’s decision this month not to run for governor opened a path for Swalwell to be the only sitting member of Congress in the race.
There’s also urgency for Swalwell to get in soon. Unlike two other possible entrants, billionaires Rick Caruso and Tom Steyer, he isn’t wealthy and will need to raise money quickly to break through in a crowded field.
Meantime, he’s planning to have at least his second meeting with long-shot Democratic contender Stephen J. Cloobeck, who told Playbook he’d consider backing Swalwell financially and otherwise if he gets in.
“I’m optimistic after meeting all the existing and past candidates that there may be a there, there with Eric. He’s a Fighter and ProtectorTM,” Cloobeck said in a text message. [Politico]
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AZ Rep. Adelita Grijalva Takes Office, Ending the Second-Longest U.S. House Vacancy of the 119th Congress
On Nov. 12, Speaker of the House Mike Johnson (R-La.) swore Rep. Adelita Grijalva (D-Ariz.) into the U.S. House of Representatives, filling the vacancy in Arizona’s 7th Congressional District. Grijalva’s swearing-in brings the Republicans’ majority in the chamber to 219 to 214 with two vacancies.
The vacancy occurred because Grijalva’s father, Rep. Raúl Grijalva (D-Ariz.), died on March 13. In the Sept. 23 special election to fill the vacancy, Grijalva defeated Daniel Butierez (R) 69% to 29%.
The House was out of session from Sept. 19 to Nov. 12, when they returned and approved the continuing resolution that ended the federal government shutdown. On Oct. 2, 180 House Democrats sent a letter to Johnson asking him to swear in Grijalva during a pro forma session. Johnson said he could not swear in Grijalva during a pro forma session and that he would swear her in when everyone returned.
Not including the special election in Arizona's 7th Congressional District, there have been four other special elections to fill vacancies in the 119th Congress (2025-2027). Johnson swore in three winners—Randy Fine (R-Fla.), Jimmy Patronis (R-Fla.), and James Walkinshaw (D-Va.)—of those special elections the day after their respective elections. Both Fine and Patronis were sworn in during a pro forma session. The other special election, in Texas's 18th Congressional District, advanced to a runoff. As of this writing, Gov. Greg Abbott (R) has not yet announced a date for the runoff. [Morning Brew]
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How a Book on Workplace Safety Became a Best Seller
- Professor Matthew Hallowell, who founded the University of Colorado Boulder’s Construction Safety Research Alliance in 2018, recently published a book summarizing more than 100 journal papers on workplace safety.
- “Energy-Based Safety: A Scientific Approach to Preventing Serious Injuries and Fatalities (SIF)” summarizes the research in reader-friendly terms. Within 48 hours of announcing pre-order for the book on Amazon, it became a best-seller in its genre.
- The book explores the unique causes of injuries and fatalities: the so-called “Energy Wheel.”
- “Anytime somebody gets hurt, energy from the environment is contacting them,” Hallowell says in an interview.
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Heard This Before
Per the Union-Tribune, “San Diego Supervisors voted 4-1 to back Supervisor Joel Anderson and Paloma Aguirre’s pitch to lead a county subcommittee that will dig into county contracts and how the county could save cash and improve services. The bipartisan duo said their goal is to investigate where the county can save money without disrupting services and potentially change policies that are impeding progress and revenue opportunities for county government.” Here’s my suggestion: reject union PLA proposals for all county projects!
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Flu Season
A new virus variant and lagging vaccinations could lead to a severe flu season in the US. Health experts are closely monitoring a mutated strain called subclade K, which has caused early surges in the United Kingdom, Canada, and Japan. Flu activity in the US remains low but is rapidly increasing, according to a CDC report. Early analysis indicates that this season's flu vaccines offer some protection against hospitalization from this variant, especially for children. However, data shows many Americans are skipping their flu shots this year. This follows a particularly severe flu season last winter, when the US experienced its highest hospitalization rates in nearly 15 years, and at least 280 children died from influenza, the highest number since 2004.
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California Battery Energy Storage Systems Legislation Update: Safety Requirements and AB 205 “Opt-In” Procedures Amended
In the wake of a catastrophic battery storage facility fire in Moss Landing in January that burned over half the batteries in a 300-megawatt (MW) installation in Monterey County, 2025 has been a rollercoaster year for Battery Energy Storage System (BESS) regulations.
Introduced within days of the Moss Landing fire, Assembly Bill (AB) 303 (Addis) would have immediately banned utility-scale BESS within 3,200 feet of sensitive receptors and removed BESS from eligibility for the California Energy Commission’s (CEC) “Opt-In” permitting procedure under AB 205 (2022) (and required the CEC to deny pending applications).
As the (literal) dust settled, Governor Newsom called for the California Public Utilities Commission (CPUC) to investigate the incident. The CPUC’s investigation, conducted by the Safety and Enforcement Division (SED), as well as several other agencies that investigated water and soil contamination relating to the fire, found no significant impacts. Meanwhile, the CPUC adopted modifications to its General Order (GO) 167 on March 13, 2025, adding new safety standards for BESS.
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Yawn
Feeling bummed about it getting dark so early? Think of the people living in Utqiagvik, Alaska, 330 miles north of the Arctic Circle. Yesterday at 1:36 pm local time, the sun set and it won’t rise again until January 22. For 64 days, residents will experience polar night. Over the entire year, Utqiagvik gets about the same amount of daylight as Miami or any other place on Earth because we all get roughly the same number of hours of sunlight over 365 days. The sun will rise in Utqiagvik in mid-May and won’t set again until August.
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Happy Thanksgiving!
As we wrap up another busy year in construction, Thanksgiving gives us a moment to pause and appreciate the people who make the electrical and low-voltage industry strong.
To the contractors, journeyworkers, apprentices, electrician trainees, estimators, project managers, and everyone who keeps jobs moving, thank you. Your skill, grit, and commitment build more than structures. You build communities, opportunities, and a better future for the people who live and work in the spaces you create.
This season, we’re grateful for your partnership, trust, and the work you do every day: often early, often late, and often in conditions most people never see.
Wishing you and your families a safe, restful, and well-earned Thanksgiving.
Warm regards,
Rex, Richard and the WECA Government Relations Team
Bye Nancy
Nancy Pelosi announced this morning via social media that she will not seek re-election in 2026. “With a grateful heart, I look forward to my final year of service as your proud representative,” she said. A member of a Baltimore political family, Pelosi has represented California in the House since 1987, making her the second-longest-serving woman in the House's history. She made history in 2007 by becoming the first woman to serve as speaker of the House, where she gained a reputation as a skillful political operator. Combining her two terms as speaker (2007–2011 and 2019–2023), she is the fifth-longest-serving speaker in history. Her decision opens the door for State Senator Scott Weiner and several other hungry politicians to run for the seat. Weiner opened a committee earlier in the year. Here is a list of people who will be in the race.
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After Prop 50, California is Now the Fifth State to Redistrict Ahead of the 2026 Congressional Elections
California became the fifth state to redraw its congressional districts ahead of the 2026 elections after voters approved Proposition 50 on Nov. 4. The new map makes five districts more favorable to Democrats according to 2024 presidential results. That could lower the net gains from redistricting in Republican-led states from nine districts to four nationwide.
Gavin Newsom (D) stated that California’s new map was a response to redistricting in Texas. Texas became the first state to enact new congressional district boundaries ahead of the 2026 elections on Aug. 29. That map shifts five Democratic districts toward Republicans according to 2024 presidential election results.
Since then, three other Republican-led states have enacted new congressional maps; two voluntarily and one due to a constitutional requirement. On Sept. 28, Missouri enacted a new congressional map that aims to net one Republican district by drawing parts of Kansas City into surrounding rural areas. North Carolina enacted a new map on Oct. 22 that makes the 1st District, currently represented by Democratic U.S. Rep. Don Davis, more favorable to Republicans. According to Inside Elections, President Donald Trump (R) would have won the district by 12 points in 2024.
Ohio was the only state required by law to redistrict because the commission’s 2022 map did not have bipartisan support. On Oct. 31, the Ohio Redistricting Commission approved a new map that, according to data from the commission based on recent statewide election results, could make two districts more competitive for Republicans.
Altogether, Republicans could net four districts nationwide because of mid-decade redistricting. As of Nov. 5, Republicans had a 219-213 majority in the U.S. House with three vacancies.
Five states (three Republican-led and two Democratic-led) are still considering redistricting before the midterm elections. A new Utah map, drawn by the Legislature due to a court order, awaits District Judge Dianna Gibson’s consideration. She is expected to issue a ruling by Nov. 10.
The Florida Legislature formed a special redistricting committee that has not yet met. Indiana lawmakers will consider redistricting in response to Gov. Mike Braun’s (R) call for a special session during the first two weeks of December. Kansas House Speaker Dan Hawkins (R) announced the House did not gather enough votes to call a special session, but the Legislature could still take up redistricting at the start of its regular session in January.
Maryland Gov. Wes Moore (D) announced the creation of a redistricting advisory commission on Nov. 4 that would propose a new congressional map ahead of the 2026 elections. Maryland Senate President Bill Ferguson (D) had previously told the chamber's Democrats that "the Senate is choosing not to move forward with mid-cycle redistricting."
In October, the Virginia General Assembly approved a constitutional amendment that would allow the state to redraw its congressional lines. The amendment must pass the General Assembly again after new officeholders are sworn in before being placed on the ballot for voters to decide.
Click here to learn more about congressional redistricting ahead of the midterm elections.
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And in a related story, California Republicans File Prop 50 Lawsuit
A coalition of California Republicans filed a lawsuit yesterday challenging Proposition 50, an immediate attempt to thwart Democrats’ gerrymandering plan just hours after polls closed. The lawsuit, which was filed with the U.S. District Court for the Central District of California, claims the state’s move to redraw its congressional lines is unconstitutional and violates the 14th and 15th Amendments for redistricting based on race, “specifically to favor Hispanic voters, without cause or evidence to justify it. While the Constitution entrusts States with designing congressional districts, the Supreme Court has also held that states may not, without a compelling reason backed by evidence that was in fact considered, separate citizens into different voting districts on the basis of race,” the lawsuit reads.
The lawsuit, filed by the California Republican Party along with a group of California voters and Republican candidates, is the latest pushback in a growing list of litigation across the country attempting to counter gerrymandering in the sweeping redistricting war. Since the 2020 census, around 100 lawsuits have been filed in attempts to block the redistricting that would threaten either party’s congressional strongholds, including a lawsuit from Virginia Republicans last month and four separate suits in September challenging Missouri redistricting that would favor the GOP.
The prospect of a California gerrymander caught conservatives’ attention before Proposition 50’s victory Tuesday night, with former Trump White House strategist Steve Bannon arguing that challenging the redistricting plan should be a top priority for the president. “Two things I would do [if I were Trump],” Bannon told POLITICO Magazine. “Number one, get [Assistant Attorney General] Harmeet Dhillon and the Justice Department to go out and file suit against this scam of [California Gov. Gavin] Newsom on this redistricting plan that went against the constitution of California. I would get the Justice Department to file suit, go get a [temporary restraining order] immediately, and then hit this thing and drag it out for a year.”
Assemblyman David Tangipa (R–Clovis) was the lead plaintiff on the lawsuit, working with the California Republican Party and Harmeet Dhillon’s law firm to oppose the gerrymandered redistricting scheme that favors Democrats. With a straight face, they argued that the new map violates the 14th and 15th amendments of the U.S. Constitution, as well as Supreme Court precedent regarding race-based districts under the Voting Rights Act.
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California Exempt Employee Wage Increases for 2026
Each year, California’s minimum wage rises, but along with hourly workers’ wages increasing, so too does the salary threshold for employees to be exempt from overtime. For an employee to be exempt from overtime under California law, their job must fall into a specific exempt category and meet a designated wage rate.
The most common exemptions are for executive, administrative, and professional roles. Employees in these capacities generally qualify if their work meets detailed requirements and they earn at least twice the state minimum wage for full-time employment. In 2026, exempt employees will increase from $68,640 to $70,304 per year on January 1, 2026, in accordance with California’s requirement that exempt employees must earn at least twice the state minimum wage for full-time work (40 hours per week, 52 weeks per year).
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Voters Consider Fate of $398 Million Worth of Local Tax Measures
When Californians voted in yesterday’s special election on Proposition 50, many also had an opportunity to vote on local tax and bond measures.
There were 14 tax and bond measures on local ballots. If all are approved, California’s affordability problem will worsen, as residents will be required to pay an additional $398.4 million per year in new taxes. As is often the case, some local government entities used tax dollars to campaign in favor of tax increases, despite the state law that prohibits the use of any public resources to campaign for or against ballot measures. For example, Santa Clara County’s First 5 Commission, a public entity funded by revenue from tobacco taxes, posted an endorsement on its website, stating: “The FIRST 5 Commission voted unanimously to support Measure A as an investment in children, families, and the future of our community.”
The city of Santa Fe Springs posted a list of “frequently asked questions” about Measure L with a campaign-style flier titled, “Measure L. Local Choices. Local Impact.” The flier includes only positive spin on the measure and is accompanied by a color photo of a family laughing and enjoying a picnic.
Suspected violations of the state’s election laws can be reported to the California Fair Political Practices Commission, which has the authority to issue monetary penalties against local government agencies that are found to be in violation.
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Final Days to Enter the Committed to America’s Heroes Sweepstakes
In partnership with Toyota North America, Hiring Our Heroes is proud to offer one lucky member of the military community the chance to drive away in a brand-new Toyota of their choice through the Committed to America’s Heroes Sweepstakes.
Don’t miss your chance to win a brand-new Toyota; the sweepstakes deadline is December 1.
Enter for Your Chance to Win
There is no cost to enter, and it takes seconds to submit your entry. The Committed to America’s Heroes Sweepstakes is open to active-duty service members, veterans, and military spouses.
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Other Election Results
Abigail Spanberger (D) defeated Winsome Earle-Sears (R) in the race to succeed incumbent Gov. Glenn Youngkin (R), who was term-limited. As of 1 a.m. EST Wednesday, with more than 95% of votes in, Spanberger received 57.5% to Earle-Sears’ 42.3%.
Spanberger’s victory, combined with Democrats holding their majority in the House of Delegates, created a new Democratic trifecta in the state. Once Spanberger is sworn in, Virginia will be one of 16 Democratic trifectas. Nationally, following the 2025 elections, there will be 16 Democratic trifectas, 23 Republican trifectas, and 11 divided governments.
CSLB Joins Multi-Agency Effort to Combat Unlicensed Contractors Across California
The Contractors State License Board (CSLB) recently completed a statewide series of stings and sweeps targeting unlicensed activity in the construction industry. The effort was part of a multi-agency effort organized by the National Association of State Contractors Licensing Agencies (NASCLA).
The stings and sweeps resulted in 119 legal actions, primarily for unlicensed contracting and illegal advertising. Unlicensed contracting puts consumers at risk in many ways, including failure to meet minimum competency requirements and the lack of a contractor’s bond or workers' compensation insurance.
Over the course of two weeks, the CSLB joined forces with local law enforcement to conduct three undercover sting operations in San Joaquin, Kern, and San Diego counties. Investigators contacted the suspects through their advertisements. Unlicensed individuals can only advertise for jobs valued at under $1,000 and must clearly disclose that they are not licensed.
During the stings, suspected unlicensed individuals arrived at designated locations to bid on various projects, including demolition, fencing, flooring, masonry, painting, sand and water blasting, concrete work, tree removal, landscaping, solar installation, and kitchen and bathroom remodeling. As a result, 19 administrative legal actions were filed, and 26 individuals will be referred to the district attorney’s offices for review and possible prosecution for contracting without a license.
The individuals involved submitted bids ranging from $1,000 to $46,000. California laws prohibit unlicensed contractors from bidding on and/or contracting for any project that requires a building permit, involves employee labor, or has a combined labor and material cost of $1,000 or more. All may now face legal consequences, which can include substantial fines and potential jail time.
Forty-six sweep operations were conducted in 17 counties. They included 454 site visits, 28 cases referred to local district attorneys, nine licensee citations, 24 non-licensee citations, 13 Letters of Admonishment, 27 stop work orders, and 99 advisory notices.
During the stings and sweeps, several individuals requested an excessive down payment. It is illegal in California for a home improvement project's down payment to exceed 10 percent of the contract total or $1,000, whichever is less. This misdemeanor charge carries a maximum penalty of six months in jail and/or a fine of up to $5,000. Subsequent payments cannot exceed the value of the work being performed or materials delivered.
“Nationwide enforcement operations such as the NASCLA coordinated enforcement effort are vital in educating consumers about the risks of not checking a contractor's license and deterring unlicensed/unqualified practice,” said CSLB Registrar David Fogt. “It only takes a few seconds to verify a contractor's license information on CSLB's website.” Unlicensed individuals cited during the operations were provided with information on how to obtain a license and were invited to attend one of the CSLB's “Get Licensed to Build” workshops.
For further information or to report suspected unlicensed contractor activities, please visit the CSLB website at www.cslb.ca.gov or contact CSLB toll-free at 1-800-321-CSLB (2752). For ongoing information and updates from CSLB, connect on Facebook, X, Instagram, and YouTube.
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Republican-Led NLRB May Soon Revisit Expanded Remedies and Other Labor Precedents
With the Senate HELP Committee advancing two of President Trump’s nominees, the NLRB may soon regain a quorum and shift to its first Republican-led majority since 2021, potentially signaling changes to existing federal labor law. Expanded remedies under Thryv remain in force, for now. The NLRB’s Thryv, Inc. decision (2022) broadened employer liability in unfair labor practice cases by requiring compensation for all “direct or foreseeable” harms.
More on NLRB revisiting expanded remedies here
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Initiative Proposes $100 Billion Tax on Those with Assets Over $1 Billion
An initiative filed October 22nd by a powerful government employee union proposes a one-time tax on net worth above $1 billion; a tax on individuals that the proponents say would raise “about $100 billion to replace lost federal dollars and protect essential services.”
Initiative 25-0024 proposes an “excise tax … on the activity of sustaining excessive accumulations of wealth.”
The tax would be imposed for the 2026 tax year and would apply to “all forms of personal property and wealth, whether tangible or intangible,” over specified thresholds. It would be imposed on individuals (a married couple would be considered as one individual) and trusts, with provisions relating to sole proprietorships and how a business entity’s value would be allocated to individuals who own an interest in the business.
The tax rate would be 5 percent for those with a net worth higher than $1.1 billion, with slightly lower rates for those with a net worth between $1 billion and $1.1 billion (the 5 percent rate would be reduced 0.1 percentage point for each $2 million below the $1.1 billion threshold).
If the proponents gather enough signatures to qualify the measure for the ballot, it will go before voters in the November 2026 election. This creates the potential for a massive excise tax that would be retroactive to the beginning of the tax year for many provisions, and to October 15, 2025 (one week before the initiative was filed) for several provisions intended to make it impossible for taxpayers to adjust their behavior to avoid incurring tax liability.
The named proponents are Suzanne Jimenez, Chief of Staff for the Service Employees International Union – United Healthcare West (SEIU-UHW), and Jim Mangia, chief executive Officer of St. John’s Community Health, a network of nonprofit health centers in Southern California.
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CEQA Reform
The California Chamber of Commerce filed a ballot initiative that would overhaul CEQA, California’s broadest environmental law, casting it as an effort to spur development and lower housing costs. The initiative, titled the “Building an Affordable California Act,” aims to push beyond changes to the law passed earlier this summer and streamline the entire CEQA process for “essential projects,” arguing that the state’s “outdated system” is “too slow, too bureaucratic, and too costly.” The measure proposes a series of changes to streamline CEQA to cut red tape and limit lawsuits that the chamber says unnecessarily delay projects deemed “essential” like affordable housing, clean energy, transportation, and wildfire resilience. It would create enforceable deadlines for review, giving government officials one year to approve or deny environmental impact reports, as well as measures to limit the effectiveness of "frivolous" NIMBY lawsuits. “Legislators have previously approved narrow project exemptions, but it’s time to actually modernize the 55-year-old law,” wrote Jennifer Barrera, the president and CEO of CalChamber, in an argument for the proposal. “Californians deserve a law that recognizes prosperity isn’t the enemy of preservation.”
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New Poster
On October 12, 2025, Governor Newsom signed Senate Bill (SB) 294, which requires employers in California to provide a stand-alone written notice of worker rights to each new employee when hired, and annually to all current employees. It also tasks the Labor Commissioner with developing and annually updating a template notice and related educational materials for California employees and employers.
Workplace Know Your Rights Act: By February 1, 2026 (and every year thereafter), employers must provide each employee with a stand-alone written notice summarizing key workplace rights. The notices must disclose:
(1) the right to workers’ compensation benefits;
(2) the right to be notified of immigration-agency inspections;
(3) protections against “unfair immigration-related practices”;
(4) the right to organize or engage in concerted activity (i.e., to unionize);
(5) constitutional rights when interacting with law enforcement at the workplace;
(6) information on new legal developments deemed material by the Labor Commissioner; and
(7) a list of relevant enforcement agencies.
[CABIA]
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Annual Cook Brown Labor & Employment Law Update
If you have not yet registered, you can reserve your place for this timely program and gain valuable insight from Cook Brown attorneys on the legal developments and compliance requirements that will shape workplace practices in 2026. Live Webinar – November 19, 2025 | 9:00 AM – 10:15 AM PT
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