BAHFA In 2019, the Legislature enacted AB 1487 (Chiu), to establish the Bay Area Housing Finance Authority (BAHFA). BAHFA is authorized to raise, administer, and allocate funding and provide technical assistance in the nine-county Bay Area region for tenant protection, affordable housing preservation, and new affordable housing production. Two governmental entities provide region-wide housing planning: the Metropolitan Transportation Commission (MTC) and the Association of Bay Area Governments (ABAG). These entities govern BAHFA. Among its powers, AB 1487 allows its board to place various revenue-generating measures on the ballot in all nine Bay Area counties. Specifically, the bill allows the authority to approve:

• Various types of special taxes, including parcel taxes;
• A regional commercial linkage fee; and
• General obligation and revenue bonds.

If approved, BAHFA retains 20 percent of the revenue raised and distributes the remaining funds directly to counties or cities for specified housing projects, programs, and related infrastructure. BAHFA planned to put a regional financing measure on the November 2020 ballot, but the COVID-19 pandemic forced the agency to delay its plans. The Budget Act of 2021 (SB 129, Skinner) allocated $20 million to BAHFA to fund five BAHFA pilot programs.

In June, the BAHFA board agreed to ask voters across the nine counties of the Bay Area to approve an IOU of up to $20 billion dollars. The bulk of the funds would go toward the construction of new subsidized housing projects, with the rest to be spent buying up existing units (to make or keep them affordable) and on housing-related infrastructure.

But big borrowing comes with a big cost. The authority estimates that paying off principal and interest will add up to nearly $50 billion, to be paid via higher property taxes. Even for one of California’s most reliably progressive regions, that’s no sure thing. Last March, a mental health housing and treatment bond was backed by Gov. Gavin Newsom and supporters spent nearly 15,000 times more than the opponents. Still, Prop. 1 passed by less than half of a percentage point. Polling commissioned by BAHFA found that 54 percent of likely voters support the bond. That may be more than a majority, but in California, where most local bonds require the backing of two-thirds of voters, that isn’t enough to pass. That could change this November. Legislators approved a constitutional amendment to reduce the threshold needed to approve local housing and infrastructure borrowing to 55 percent. That change is headed for the November ballot, and if it passes, it would apply to any bond concurrently on the ballot, including the Bay Area bond. That means the fate of California’s largest-ever housing bond may hinge on the outcome of not one ballot measure but two.

But, and I suspect every reader saw this coming, the board concluded (after careful study, I am sure) that any money they send to local agencies to produce this vitally needed housing comes with a payout to the State Building and Construction Trades Council.

And here comes Senator Dave Cortese to the rescue. His SB 753, that was introduced to require motion picture production employers to hire a qualified set safety advisor and to be on set daily, was stripped of that language and amended to mandate that any construction or rehabilitative project receiving funding from BAHFA is a public work and subject to prevailing wage and a PLA. Who are Dave’s leading campaign contributors? General trade unions and public sector unions, of course. The Assembly Housing Committee approved the bill on a party-line vote, and it is awaiting judgment in Assembly appropriations when the Legislature returns in August.
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California Court of Appeal Thwarts Efforts to Conceal Important Driving History Information from Employers California employers are familiar with how officials continue to restrict employers' access to public records, including criminal history information. For example, lengthy delays in completing standard criminal background checks are now routine in California. Apart from criminal background checks, many employers rely on motor vehicle record checks (MVRs) to vet candidates for positions that require driving as part of the job. In Doe v. California Dept. of Motor Vehicles, the court of appeal rejected the plaintiffs’ efforts to enjoin the Department of Motor Vehicles (DMV) from releasing information about the reason for a driver’s alcohol-impaired driving license suspension (e.g., the driver had an excessive blood-alcohol level) when the driver has not been convicted. Reversing the trial court, the court of appeal held the disclosure of such information does not constitute the disclosure of information about a non-conviction arrest within the meaning of California’s privacy laws. This is a rare “win” for employers in the Golden State. Story
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“New PAGA” Brings Guarded Optimism to California Employers The long-awaited PAGA reform legislation (“New PAGA”) brings significant change and some clarification to the 20-year-old law. It reconciles previously ambiguous interpretations of the law and adds new provisions that will have far-reaching effects on the litigation of PAGA actions. The new law provides further guidance and new opportunities for employers regarding plaintiff standing, cure, remediation, early settlement opportunities, and adjusted default penalty amounts. Some expect these changes to generate significant future litigation regarding their scope and implementation. More
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Five + Four = Nine The Los Angeles County Board of Supervisors is set to consider a proposed charter amendment to increase the number of board seats from five to nine. Each LA County supervisor oversees a district of approximately 2 million people and earns about $280,000. The proposal aims to establish a governance structure that is "more representative, accountable, and efficient." The county has not released a formal estimate for the cost of the proposed changes. If the board approves the proposal, which was announced last week by Supervisors Lindsey Horvath and Janice Hahn, it will go before voters on the November ballot. If the motion passes tomorrow, it will return at least twice to the board for final votes on language. The proposal also includes two additional reform measures changing the structure of the county's government. The County Chief Executive position, which oversees the county's $45.6 billion budget, would change from a board appointment to an elected post. It would also create an independent ethics commission. Fact sheet
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JATCs Rule The Biden/Harris administration has been on a blitz promoting registered union-friendly apprenticeships. Last Thursday, it doled out more than $244 million through a pair of grant programs. White House domestic policy adviser Neera Tanden also traveled with acting Labor Secretary Julie Su to Williamsport, Pennsylvania, to tout the announcement. It was part of a two-day swing through the Keystone State for Su, also joined in Philadelphia by Deputy Treasury Secretary Wally Adeyemo. Treasury recently finalized regulations tying registered apprenticeships and prevailing wage requirements to lucrative clean energy tax credits. Adeyemo said his priorities are ensuring employers are aware of these incentives — and that Treasury is serious about enforcing the labor requirements. “If you're going to claim the tax credit, you have to do the right thing and make sure you're paying employees the prevailing wage and making sure you're using legitimate apprenticeship programs,” he said in an interview. DOL is also working on an overhaul of the rules for apprenticeships, with the agency targeting August to finalize them — a potentially risky move that would expose them to a possible GOP rollback depending on the elections.
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Mark Who? Democrat donors are talking up a new potential candidate: Senator Mark Kelly of Arizona. Kelly, a former astronaut and U.S. Navy fighter pilot has won two elections in a crucial battleground state, demonstrates a potential allure to undecided moderates. (He is married to Gabby Giffords, the former Arizona Representative who survived an assassination attempt in 2011.) For some Democratic financial supporters, his bio makes him the man of the moment. However, Kelly has many drawbacks that other donor wish-list names share. Those include a lack of name recognition, logistical hurdles to taking over the Biden campaign’s infrastructure, and money. Also, a lack of experience on the national and international stage and side-eye from Arizona’s Bob Bartlett.
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Taxpayers Bail Out Another Failing Union Pension Fund With $1.5 Billion On Monday, the Pension Benefit Guaranty Corporation (PBGC) announced that it had approved giving $1.5 billion of taxpayer money to yet another underfunded union pension plan: The American Federation of Musicians and Employers Pension Plan (American Federation of Musicians Plan), which is based in New York City and covers 49,180 participants in the entertainment industry. Story
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PROP 36 Lindsey Cobia, a consultant with close ties to Newsom, will lead the “No” campaign on the tough-on-crime initiative. Cobia is not working on behalf of the governor. Still, the two are on the same page: Besides her new gig battling Prop 36, Cobia is a key official on Newsom’s bid to make Democratic inroads in red terrain. Newsom is expanding his offensive against national Republican figures by channeling $10 million into a new political organization that will wade into red states through the 2024 cycle.

In a glossy launch video featuring images of longtime GOP nemeses like former President Donald Trump, Florida Gov. Ron DeSantis and Texas Gov. Greg Abbott, Newsom said his newly launched “Campaign for Democracy” committee would organize and spend money in “states where freedom is most under attack.”
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More SCOC Tinkering with Voting The California Supreme Court has signaled they will consider a case asking for the removal of a November ballot measure that targets the funding of one organization, the AIDS Healthcare Foundation. Late last week, the court requested briefs related to the Proposition 34 challenge on an expedited timeline, an unusual request that suggests it is open to hearing the case. If the state's highest court removes the measure from the November ballot, it will mark the second such decision in recent weeks. Last month, the court killed the Taxpayer Protection Act, a high-profile initiative that would have made raising taxes in the state more difficult. Opponents of Prop 34 have argued that it is unconstitutional because it targets one organization, the AIDS Healthcare Foundation. The measure would require AHF to spend 98 percent of its taxpayer-generated revenues on direct patient care, an apparent attempt to stop the tax-exempt nonprofit from using its funding to advance its political agenda, including expanded rent control, at the ballot box. On Friday, the California Apartment Association filed a brief in support of Prop 34 — and the court asked for a reply from AHF within two business days. “It doesn’t happen often,” said Jerry Flanagan, the litigation director for Consumer Watchdog, a progressive non-profit that filed an amicus letter on behalf of AHF, about the quick timeline. “The justices are not going to push a quick turnaround if they’re not interested.”

Thank goodness we have the court protecting a voter’s right to vote!
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Matt Haney’s Boozy Campaign Fundraisers Under Investigation by State Watchdog Assembly Member Matt Haney’s mixing of business with pleasure by holding boozy campaign fundraisers at San Francisco 49ers games, Broadway shows and other sporting events has run the state assemblymember into hot water. The California Fair Political Practices Commission (FPPC) is investigating Haney’s campaign this week after The Standard reported unusual fundraisers frequently featured on Haney’s Instagram account as he snapped pictures with family and friends. Haney spent more than $65,000 in campaign funds on 49ers tickets since the beginning of last year. His campaign also spent thousands on tickets, food and drinks while Haney watched the San Francisco Giants, Golden State Warriors and Broadway shows like “The Lion King.” Many of Haney’s recent donors said they were not invited to the games, raising questions about who attended. Story

Legislature Wants to Borrow More, Natch Politicians plan to borrow $10 billion from Wall Street for school construction and make taxpayers pay it back plus 80 percent in total interest costs. Several years ago, Gov. Gavin Newsom bragged about having a $97.5 billion surplus to expand health care, social equity, and educational programs. But facing mid-term elections in November 2022, Newsom and the State Legislature hatched a plan to give more than $9 billion of this money back to low—and moderate-income California residents. And for some reason, Newsom signed a contract with an out-of-state company instead of issuing checks to send this money as prepaid debit cards. According to recent reports, over half the cards issued still had unspent funds as of April. Some 624,000 cards had not even been activated. Hundreds of millions of dollars are being held by the state’s contractor, Money Network, benefiting no one in California. Worse, the state auditor released a report recently saying Money Network failed to answer half of the calls from residents who wanted to speak with an agent about the program or problems with their cards. Because of that, the auditor said it’s impossible to track how much fraud occurred, even though, per its $25 million contract with the state, Money Network was supposed to limit the fraud rate to 1 percent. And the state just signed another $32 million contract with Money Network to handle more benefits.

If that wasn’t bad enough, the legislation to place the bond on the ballot (AB 247) includes a “sweetener” for the State Building and Construction Trades Council. In an attempt to address concerns that poor school districts have little access to the state matching fund, because these small, primarily rural districts can’t raise the match, the state plans to increase state funding for certain districts on a sliding scale. The bill creates a sliding scale system where lower-wealth school districts will receive a higher state funding share for projects. The state grant amount for new construction would increase from 50 percent to 55 percent, and for modernization from 60 percent to 65 percent, based on the district's ability to generate local funds, the percentages of low-income, foster care, and English learner students, whether the district has fewer than 200 students, and whether the district’s project has a project labor agreement. We all know the 18 percent cost increase for a PLA will certainly help these poorer districts build new, or repair existing facilities.
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If You Are Planning on Social Security, Bob, Yeah, Well, Don’t Social Security has been known as “the third rail of American politics” since the early 1980s. Touching the program can prove deadly to a politician’s career, the thinking goes. The program is on solid footing, but the latest projections point to benefit cuts in the next decade. On the campaign trail, the presidential candidates are promising to preserve the program and protect seniors. Still, snappy lines at campaign rallies can mask the issue's complexities. “I think there's a real difficulty in talking about Social Security because there's been so much storytelling,” said Romina Boccia, director of budget and entitlement policy at the Cato Institute. “And there's so many myths out there about how the program works.” For years, the system has been paying out more in benefits than it brings in in payroll taxes, partly due to the combination of lower birth rates and an aging population. Another reason is growing income inequality. There’s a cap on the income taxed for Social Security, so the Americans who earn the most — and their employers — only pay Social Security taxes on the first $168,600 of income. Stephen Goss, the chief actuary of the Social Security Administration, explained the issue to members of Congress in testimony before the House Budget Committee earlier this month. More
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Utah To Finally Get Its Own Passport Office, After Romney Push Salt Lake City will get a permanent passport office, Secretary of State Antony Blinken announced Tuesday. The closest passport office to Salt Lake is currently 500 miles away in Denver. Still, after a concerted effort by Sen. Mitt Romney and other members of Utah's congressional delegation, an office will soon be open in Utah. Romney released a statement after the announcement saying he and his team had worked for more than three years to bring a passport agency to Utah: "Utah is experiencing rapid population growth as it becomes a center for global commerce and tourism - as well as a home base to thousands of Latter-day Saints who embark on worldwide religious missions each year," Romney said. "A passport agency in Salt Lake now means that Utahns will not have to travel such long distances to obtain in-person consular services. I could not be more thrilled with today's announcement." In a statement released alongside the announcement, Blinken said six new agencies will open, including the one in Salt Lake, and that the department is issuing more passports “than ever before.” Story
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Flash: Indoor Heat Rule Done For the second time in three months, the Cal/OSHA Standards Board has adopted a rule to protect indoor workers from heat illness. In contrast to the controversial and ultimately rejected March version, this one will likely pass muster with the Office of Administrative Law. It could become effective as soon as August. The new standard is General Industry Safety Orders §3396, and it closely follows the current outdoor heat regulation in many instances. Employers must provide a quart of water per hour, access to “cool-down” areas, emergency response and acclimation procedures, and training. The basic provisions trigger when the indoor temperature reaches 82ºF. More detailed requirements kick in when the temperature is 87ºF, the heat index equals 87ºF, employees wear clothing that restricts heat removal, and the temperature is at least 82ºF, or they work in a high-radiant heat area and the temperature is 82º. In those cases, employers must measure the temperature and heat index and evaluate environmental risk factors. Employees must have “active involvement” in planning and conducting these tasks. Employers then must use engineering and administrative controls and, in some cases, personal heat-protective equipment to protect employees from the heat. Prisons, local detention facilities, and juvenile facilities are exempted from the regulation and will be subject to separate rulemaking. With the standard newly adopted, the Board is requesting OAL expedite its effective date. If that happens, the standard will be in force by early August. If not, the rule will take effect on October 1st.
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Labor Commissioner Audit: At a recent hearing, state labor officials discussed an audit of the Labor Commissioner’s Office that said severe understaffing is the primary cause of backlogs in the unit handling wage theft claims. Lawmakers were skeptical that approving more positions — which they have done the past few years — would completely solve the problem. Labor Commissioner Lilia Garcia-Brower said some of her initiatives, such as assigning staff more efficiently, are promising. New positions have helped the office shave the average wait time for a wage claim hearing and decision from 1,000 days to 800 over the past two years. That’s an improvement from the 890 found in the audit, but still a far cry from the 135 required by state law — which the office has failed to reach for decades. As part of a business-union deal reached over PAGA last week, the state will soon hand the department emergency hiring authority to try to address the staffing crisis.
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Making Voting Easier... Or Harder?: Nearly a decade ago, California revamped its voter registration program to allow eligible people to register to vote when they visit the Department of Motor Vehicles. But with 4.7 million eligible Californians still not registered to vote — more than the combined population of half of the states in the U.S. — advocates are pushing a proposal to further streamline the automatic registration process. SB 299, by Sen. Monique Limón (D-Santa Barbara), would implement a “back-end” process, automatically registering people to vote if the DMV or other state agencies receive information verifying eligibility, allowing them to opt out later. Limón told POLITICO that while the bill doesn’t address voter turnout, removing the step for people to opt-in to voting allows organizations to focus on informing voters on the issues. But the bill’s opponents—the ACLU, League of Women Voters and Naleo Education Fund—argue the risks of implementing a new voter registration system outweigh the potential benefits. In an opposition letter, the groups said that while they share the goal of increasing voter registration, they believe the proposal “has significant potential to increase voter confusion, incorrectly deny eligible voters registration opportunities, create erroneous registrations and strip important voter preference information from registration records.”
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A new decision by an NLRB Regional Director may help clarify the issue. A question that has confounded many in the labor relations community for years is whether or not worker centers are, in fact, labor organizations. However, a new National Labor Relations Board (NLRB) Regional Director (RD) decision may shed some light on the subject.
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EV Charging Desert  A new study led by Harvard University shows that some rural counties across the U.S. have become EV “charging deserts.” According to the study, 34 counties that once had public charging stations no longer do, and three dozen other counties have lost most of theirs. The study shows that the U.S. charging network’s reliability is at 78 percent, well below the Biden administration’s 97 percent goal. The charging network is “uneven,” according to Omar Asensio, a Georgia Institute of Technology professor doing a fellowship at Harvard’s Institute for Business in Global Society and one of the study's authors. Loren McDonald, the founder of the EV-charging data hub EVAdoption, said multiple factors could contribute to the trend. “They didn’t get a lot of use, and they got old and stopped working,” he said. “There was no motive, either by the charging network or the host, to keep them going.” Story
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Newsom Warns Of ‘Forces of Darkness’ Ahead of Presidential Debate Gov. Gavin Newsom struck a somber tone in his annual remarks to Californians last Tuesday. He warned that the state’s democratic values are at stake while castigating Republican opponents for rolling back reproductive rights and failing to pass meaningful immigration reform. He then announced he was immediately returning to Marin, which is, apparently, immune.
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Register for the July 10 virtual meeting for ADOT’s Electric Vehicle 2024 Plan Update The Arizona Department of Transportation (ADOT) will host a virtual public meeting on July 10 for the 2024 Electric Vehicle (EV) Charging Infrastructure Deployment Plan Update. The update will include information about the additional highways being added as EV corridors, proposed station locations, and the status of implementing stations identified in the 2022 and 2023 plans.

The virtual meeting will be held:

• Wednesday, July 10 at 6 p.m.
• Visit AZDOT.gov/EVPlan to register for the meeting and receive your link to attend.

The public can provide feedback on the EV Plan update through July 17 in the following ways:

• Complete an online survey: azdot.gov/EVcomments
• Email: AZEVPlan@azdot.gov
• Call: (800) 915-4301
• Mail: ADOT EV Plan, 1655 W. Jackson, MD 126F, Phoenix, AZ 85007
• Attend the virtual public meeting

For more information about the EV plan, visit AZDOT.gov/EVPlan.
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House Appropriators Lop Off a Fifth of DOL's Budget, a Third of NLRB's House Republican appropriators are again seeking steep cuts to the Department of Labor’s budget as part of funding legislation released last week. The GOP proposed allocating $10.5 billion for DOL, a 23 percent cut from the $13.5 billion set aside for the department in the fiscal year that runs through the end of September. In March, President Joe Biden requested an additional $318 million in discretionary funding for DOL above FY24 levels. House appropriators attempted to slash DOL’s budget by about 30 percent last year, only to see their efforts dashed by their Senate counterparts amid White House pushback to such heavy cutbacks. GOP appropriators want to slice $75 million from DOL’s two main worker-protection arms, the Wage and Hour Division and the Occupational Safety and Health Administration, a combined 12 percent cut to their budgets. The funding bill would bring the WHD budget down to $235 million and provide nearly $557.8 million for OSHA. In contrast, the Biden administration requested a $121 million boost for the two branches in its FY25 request. Separately, Republicans revived their bid to strip the National Labor Relations Board of a third of its funding, bringing its budget down to $200 million. Earlier in Biden’s term, the NLRB received its first increase in years, staving off impending furloughs. The White House had requested that the independent agency be brought up to $320 million, a 6.9 percent increase for FY25.
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Arizona State Legislature Refers 11 Measures to The General Election Ballot, Most Since 1984 The Arizona State Legislature adjourned earlier this month, referring 11 measures to the ballot—five state statutes and six constitutional amendments. This is the most legislatively referred measures on the ballot since 1984, when 13 measures were on the ballot. This is also the third-highest year on record in the state. Some measures did not make the ballot—an additional 15 amendments and five statutes passed one chamber but not the other. Arizona has a divided government. Gov. Katie Hobbs (D) was elected in 2022. This is the first time since 2008 that Arizona had a Democratic governor. Meanwhile, the Republican Party has controlled both chambers of the Legislature since 2003. In April, Hobbs set the record for the most vetoes of any governor in Arizona history, vetoing 185 bills since taking office in January 2023. In Arizona, legislatively referred measures do not require gubernatorial approval to go on a statewide ballot for a popular vote of the people, so they provide a different approach for the legislature to enact policy potentially. Story
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Court Rejects Phoenix and Tucson Prevailing Wage Ordinances A Maricopa County Superior Court judge on Monday ruled that attempts by Phoenix and Tucson to establish prevailing wage ordinances for public works projects violated state law. Attorneys from the Goldwater Institute successfully argued on behalf of the Associated General Contractors (AZAGC), the Arizona Builders Alliance (ABA), and the Associated Minority Contractors of Arizona (AMCA). Story
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Does Arizona Have Enough Water? Phoenix-Area Cities Are Spending Big To Make Sure It Does The Biden Administration has poured money … allocating $4 billion from the Inflation Reduction Act for Colorado River projects. … The Biden administration framed the spending effort as “water conservation,” but Arizona’s municipal water leaders aren’t using it to make changes traditionally considered conservation. Instead of paying for small tweaks to water use – like encouraging residents to install low-flow showerheads or rip out their thirsty lawns – many are thinking bigger, putting their multimillion-dollar checks towards billion-dollar infrastructure projects to keep taps flowing for decades. Cities like Peoria are planning to engineer their way out of the problem. Story

PAGA Deal California’s crowded November ballot will have one fewer question after business and employee groups resolved a dispute over a law workers commonly use to sue their employers. Newsom’s office announced Tuesday's agreement to rework the Private Attorneys General Act or PAGA, which lets workers sue employers on the state’s behalf. The California Chamber of Commerce has argued that the law leads to frivolous and expensive lawsuits, while the California Labor Federation counters that it’s an important tool for maintaining respect for workers’ rights. The agreement makes changes intended to reduce the number and scope of suits brought under the law, gives employers more chances to fix problems outside court, and caps some penalties. At the same time, it increases penalties for the worst offenders and awards a greater share of the payout to wronged employees — 35 percent of the total instead of 25 percent. The deal comes after weeks of behind-the-scenes conversations involving Newsom’s team and Democratic lawmakers. They are expected to pass legislation codifying the deal before next week’s deadline to remove qualified measures from the ballot.
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Biden Rule Weaponizes IRS to Steer Clean Energy Construction Projects to Union Donors Associated Builders and Contractors issued a statement regarding the Internal Revenue Service’s final rule released for public inspection on June 18, which requires private developers to follow onerous project labor agreement, prevailing wage and apprenticeship policies when building clean energy projects funded by more than $270 billion in tax credits via the ABC-opposed Inflation Reduction Act. According to the final rule, developers must certify that their contractors pay all construction workers prevailing wages and benefits determined by the U.S. Department of Labor following the federal Davis-Bacon Act. Developers must also ensure that contractors utilize apprentices enrolled in government-registered apprenticeship programs for 15% of all construction labor hours performed on a project, among other requirements. Project developers that satisfy these new provisions are eligible for a 500% increase in various clean energy construction project tax credits compared to baseline tax credits offered to developers under prior regulations widely used by industry. In addition, developers that require contractors to execute PLAs with labor unions are immune from new monetary penalties if the developer and its contractors fail to meet cumbersome prevailing wage and apprenticeship rules. Story
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Workplace Safety Reshuffle The Occupational Safety and Health Standards Board bucked the Newsom administration in March, criticizing how it handled long-delayed indoor heat rules. Now, the administration is pushing back. Four months ago, the Board was expected to approve the rules for employers to protect workers from extreme indoor heat. The night before the meeting, the Newsom administration withdrew its support, citing cost concerns. Two board members who were among the most outspoken critics of the administration’s move have been reshuffled. Chairperson Dave Thomas has been demoted (replaced by antitrust attorney Joseph Alioto). Laura Stock has been removed, which she said she learned in a phone call last Friday. Stock has served on the board since 2012 and is a researcher and director of the UC Berkeley Labor and Occupational Health Program. In March, she called the administration’s action “completely outrageous.”
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Pension Bailout In its third pension bailout, the Pension Benefit Guaranty Corporation (PBGC) announced recently that it had approved $10.6 million in taxpayer funds for the Arizona Bricklayers' Pension Trust Fund. The fund, based in Phoenix, Arizona, covers 666 participants in the construction industry and was expected to run out of money in 2041. Thursday's announcement follows two other recent bailout announcements by the PBGC. The PBGC announced it approved approximately $545.6 million in special financial assistance (SFA) to the CWA/ITU Negotiated Pension Plan (CWA/ITU Plan), based in Mount Laurel, New Jersey. The plan, which covers 24,288 participants in the printing industry, was projected to become insolvent and run out of money in 2029. The PBGC also announced Tuesday that it approved special financial assistance for another failing Teamsters pension plan. The Teamsters Local 102 Plan, based in Cherry Hill, New Jersey, and covering 508 transportation industry participants, will receive approximately $12.4 million. "As of June 13, 2024, PBGC has announced approval of about $54.6 billion in SFA to plans that cover about 818,000 workers, retirees, and beneficiaries," the PBGC noted. "Special financial assistance for financially troubled multiemployer plans is financed by general taxpayer monies." Just this week, the PBGC announced it would be providing $568.6 million in taxpayer money to only three underfunded union pension plans. Go here for prior posts about the PBGC's taxpayer-funded pension bailouts.
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EEOC Releases Anti-Harassment Guide for Contractors The Equal Employment Opportunity Commission released a guide to help construction leaders prevent and address harassment on the job. “Promising Practices for Preventing Harassment in the Construction Industry” is part of the EEOC’s ongoing focus to address bias within the building sector. More
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Lawmaker Spent $75K In Campaign Cash On 49ers, Giants, Warriors Tix Assemblyman Matt Haney had one hell of a weekend in late January. The state assemblymember and avid sports fan partied Saturday evening at Cavana, a beautiful rooftop bar in Mission Bay specializing in Colombian cuisine and fruity cocktails. Haney dropped a few hundred bucks on food and drinks and watched LeBron James and Steph Curry duel it out at Chase Center in a double-overtime thriller. The next morning, Haney got $158 of booze at Tenderloin Liquor and headed down to Santa Clara to watch the San Francisco 49ers battle the Detroit Lions for a trip to the Super Bowl. He pregamed at a tailgate party outside of Levi’s Stadium, smoking a stogie as he took a picture with Supervisor Shamann Walton. Story
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Labor Board May Impose Union on Mercedes Workers Despite Employee Vote against UAW On May 17, workers at the Mercedes Benz plant in Vance, Alabama, voted against joining the United Auto Workers, with 56% of the voters choosing not to unionize and 90% voter turnout. Despite this decisive vote, the UAW may still be forced on the Mercedes workers. Story
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Legislature Wraps Session, Closes Budget Gap, Continues ACA The second regular session of the Arizona 56th Legislature ended on Saturday night, finally adjourning sine die. Here’s the session and the business community’s perspective on the last six months. Story
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Mistake No. 4 of the Top 10 Horrible, No-Good Mistakes Construction Lawyers Make: Not Knowing When to Fold ‘Em The following is mistake No. 4 of the top 10 mistakes lawyers make in construction disputes. Story
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A Battle Looms Over Fair Funding for School Construction In the coming days, Gov. Gavin Newsom is expected to confirm his commitment to place a state school construction bond on the November ballot. He hasn’t committed to anything yet, but he must decide in the next ten days whether to reform a method of sharing state-matching money that has long favored property-rich districts over their property-poor neighbors. Story
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Thirty seats are up for grabs in the Arizona Senate in 2024. Here's what to know about the incumbents and who's running ahead of the July 30 primary.
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Utah Climate Skeptic Lee Closes in On Top Senate Energy Role Politico reports that “Congressional Republicans who have sought to soften their party’s opposition to climate change action in recent years may be poised to elevate one of their most outspoken skeptics to lead a prominent Senate panel. Sen. Mike Lee (R-Utah) has been a fierce conservative and perennial thorn in the side of leadership of both parties since arriving in the Senate in 2011. And despite some prominent GOP members’ efforts to craft a Republican-style policy on climate change, Lee looks likely to lead the party on the powerful Energy and Natural Resources Committee — and wield the gavel if Republicans win control of the chamber in November’s election.”
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Legislation

AB 107 (Gabriel) Budget bill was approved by the Legislature on 6/15. Included two “pork barrel” projects with PLAs. WECA Position: Oppose

AB 1957 (Wilson - D) Authorizes any county of the state to use the “best value” method for construction projects over $1 million and job order contracts up to $3 million until January 1, 2030. Devoid of State Building and Construction Trades Council language. Approved by Legislature on 6/13 WECA Position: Support

AB 1976 (Haney - D) Requires, on or before July 1, 2027, the Occupational Safety and Health Standards Board to draft and adopt a rulemaking proposal to revise a standard on first aid materials to require all workplace first aid materials to include naloxone hydrochloride or another opioid antagonist, as specified, to reverse opioid overdose with instructions for using the opioid antagonist. Passed by Senate Labor on 6/12. WECA Position: Oppose Unless Amended

AB 2135 (Schiavo - D) Extends the statute of limitations on complaints submitted to the Labor Commissioner from 18 to 24 months. Allows the Labor Commissioner to continue ongoing investigations beyond the statute of limitation for good cause. Prohibits an open investigation from being closed solely due to the statute of limitations being reached. Passed by Senate Labor on 6/12. WECA Position: Oppose

AB 2179 (Davies - R) Requires a school district, county office of education, or charter school to, at the beginning of the first semester or quarter of each school year, provide information on local apprenticeship programs to pupils in grades 11 and 12. Passed by Legislature on 6/13. WECA Position: Support

AB 2182 (Haney - D) Allows the prevailing wage applicable to a public works project to be adjusted when an updated wage rate is determined by the Department of Industrial Relations (DIR) director, recasts the method for annualizing benefit computations, and repeals any previously issued determinations. Passed by Senate Labor on 6/12. WECA Position: Oppose

AB 2499 (Schiavo - D) Entitles an employee with a family member who is a victim of crime to job-protected leave to attend to the family member’s needs and ensure their safety. Additionally, it permits both the employee victim and the employee who has a family member who is a victim to use sick leave for time off to obtain victim services. AB 2499 creates new, uncapped leave for scenarios already covered under existing law. And it applies to small businesses with just five employees. Passed by Senate Judiciary on 6/18. WECA Position: Oppose

AB 2696 (Rendon - D) Authorizes a joint labor-management cooperation committee (JLMCC), as specified, to bring an action in court against a direct contractor or subcontractor at any tier for any unpaid wage, fringe or other benefit payment or contribution, penalties or liquidated damages, and interest owed to a wage claimant by the direct contractor for the performance of private work. This proposed expansion of Section 218.8 is unnecessary from an enforcement perspective. Employees of general contractors know the identity of their direct employer. They can file wage claims with the Labor Commissioner, mechanics liens on the property, stop notices with the funding entity, civil lawsuits for non-payment of wages, and claims against payment bonds. AB 2696 encourages needless lawsuits that serve no legitimate enforcement purpose. Passed by Senate Labor on 6/19. WECA Position: Oppose

AB 2705 (Ortega - D) Provides that, for a violation of public works law, the statute of limitations (SOL) for the Labor Commissioner (LC) to sue a bonding company shall be the same as the 18-month SOL for the LC to issue a civil wage and penalty assessment to the contractor or subcontractor on that project or both. Passed by Senate Labor on 6/12. WECA Position: Oppose

AB 3265 (Bryan - D) Establishes procedures for an environmental leadership media campus in the County of Los Angeles. The project must pay prevailing wages unless covered by a PLA.  Passed by Senate EQ on 6/19. WECA Position: Oppose

SB 739 (Ashby - D) If the City of Elk Grove council approves, this new bill would expand this authorization to the City to use CMaR. It requires using a Skilled and Trained Workforce unless covered by a PLA. Passed by Assembly Local Gov on 6/5. WECA Position: Oppose Unless Amended

SB 984 (Wahab - D) Requires the courts and CSU to identify and select at least three major construction projects by January 1, 2027, governed by a project labor agreement (PLA). DTSC was removed after they reported that "utilizing a PLA for a project increased the cost of the cleanup by approximately 25 percent." Passed by Assembly Labor on 6/19. WECA Position: Oppose

SB 1022 (Skinner - D) Significantly expands existing statute limitations for any complaint brought by the Civil Rights Department or its “authorized representative” to ten years. It also gives a court discretion to extend that statute of limitations even further if it is “reasonable” to do so. Passed by Assembly Judiciary on 6/11. WECA Position: Oppose

SB 1162 (Cortese - D) Expands existing law, which requires contractors and bidders on public projects to use a skilled and trained workforce, by also requiring them to report the date of birth of each worker every month. Passed by Assembly Labor on 6/19. WECA Position: Support If Amended

SB 1321 (Wahab - D) Changes standards on ETP grants. A coalition of opponents states, “This bill poses a significant threat to the vital interests of manufacturers and small, diverse businesses throughout California. SB 1321 proposes fundamental changes to the Employment Training Panel (ETP) that would render the very businesses that fund the program ineligible to participate. Such a change would undermine the essence of the ETP, jeopardizing the development and sustainability of California's workforce." Passed by Assembly Labor on 6/19. WECA Position: Oppose

Workplace Violence Prevention Program Requirements in California: As most California employers know, a new workplace violence law (SB 553) requires all CA employers to develop and implement written Workplace Violence Prevention Plans and training by July 1, 2024. The new requirements will be enforced by Cal/OSHA. You can view a two-part webinar series from attorneys from the Seyfarth Workplace Safety team that guides employers through what is new and how to prepare. Link
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Legislation

Friday, May 24^th was the deadline to move bills from their house of origin. This marks the halfway point of the session. The measures that advanced will now go through the legislative process in the second house. It should be noted that some of these proposals could be further amended/changed or even stall. Policy committee hearings will ramp up starting this week and through June, as the Legislature will take a month-long summer recess in July. The sprint to the finish line will begin upon their return to Sacramento. The respective Appropriations committees face a fiscal deadline of August 16th to meet and report legislation to the Senate and Assembly floors. Starting on August 19th, lawmakers will hold lengthy floor sessions to debate and pass measures to the Governor’s desk. As a reminder, the deadline for each house to act on bills is August 31st, at which time the Legislature will adjourn for the year. September 30th is the last day for the Governor to sign or veto bills passed.

AB 1957 (Wilson - D) This bill authorizes any county of the state to use the “best value” method for construction projects in excess of $1 million and job order contracts up to $3 million until January 1, 2030. Location: 5/29/2024-S. APPR. WECA Position: Support

AB 1976 (Haney - D) Requires, on or before July 1, 2027, the Occupational Safety and Health Standards Board ("Board") to draft and adopt a rulemaking proposal to revise a standard on first aid materials to require all workplace first aid materials to include naloxone hydrochloride or another opioid antagonist, as specified, to reverse opioid overdose with instructions for using the opioid antagonist. Location: 5/23/2024-S. RLS. WECA Position: Oppose Unless Amended

AB 2135 (Schiavo - D) AB 2135 will: 1) Extend the statute of limitations on complaints submitted to the Labor Commissioner from 18 to 24 months. 2) Allows the Labor Commissioner to continue ongoing investigations beyond the statute of limitation for good cause. 3) Prohibits an open investigation from being closed solely due to the Statute of Limitations being reached. Location: 5/23/2024-S. RLS. WECA Position: Oppose

AB 2179 (Davies - R) It would require a school district, county office of education, or charter school to, at the beginning of the first semester or quarter of each school year, provide information on local apprenticeship programs to pupils in grades 11 and 12 as provided. Location: 5/29/2024-S. APPR. WECA Position: Support

AB 2182 (Haney - D) This bill, among other provisions, allows the prevailing wage applicable to a public works project to be adjusted when an updated wage rate is determined by the Department of Industrial Relations (DIR) director, recasts the method for annualizing benefit computations, and repeals any previously issued determinations. Location: 5/29/2024-S. L., P.E. & R. WECA Position: Oppose

AB 2235 (Lowenthal - D) Would authorize the City of Long Beach to procure contracts relating to the terminal development project at the Port of Long Beach, known as Pier Wind, and to utilize any alternative project delivery method, including progressive design-build, for any contract related to that project. The bill would require the city to prepare and issue solicitation documents to procure and award any contract. For purposes of these provisions, the bill would authorize the city to perform various duties regarding the procurement and administration of these contracts, including amending or entering into new contracts. Requires a skilled and trained workforce to perform all project work unless a PLA exists. The State Building and Construction Trades Council of California opposes, "As we work collaboratively with policymakers such as Assembly Member Lowenthal and others who want to build up and fortify the ports for the burgeoning offshore wind industry, and find solutions to fund those projects, we want to ensure that bills do not conflate jurisdictional disputes between unions with the important work that needs to be funded and completed at ports such as Long Beach. Unfortunately, AB 2235 does that." Location: 5/24/2024-S. RLS. WECA Position: Oppose Unless Amended

AB 2288 (Kalra - D) This bill invites more PAGA litigation by authorizing a court to award injunctive or declaratory relief and penalties. This bill is moving in the wrong direction. Now is the time to fix PAGA, not expand it. Location: 5/22/2024-S. L., P.E. & R. WECA Position: Oppose

AB 2499 (Schiavo - D) Entitles an employee who has a family member who is a victim of crime to job-protected leave to attend to the family member’s needs and ensure their safety. Additionally, it permits both the employee victim and the employee who has a family member who is a victim to use sick leave for time off to obtain victim services. AB 2499 is creating new, uncapped leave for scenarios already covered under existing law. And it applies to small businesses with just five employees. Location: 5/24/2024-S. RLS. WECA Position: Oppose

AB 2622 (Carrillo, Juan - D) This bill revises the contractor licensing exemption to allow a person without a contractor’s license to perform minor construction work if the total cost of the project is less than $1,000 (rather than $500) if the following conditions are met: a) The work or operation does not require a building permit. b) The work or operation does not include the following trades or crafts: C-16 fire protection, C-22 asbestos abatement, or C-57 well drilling. c) The person performing the work or operation does not do the following: i) Make structural changes to load-bearing portions of an existing structure, including, but not limited to, footings, foundations, load-bearing walls, partitions, and roof structures. ii) Install, replace, substantially alter, or extend electrical, mechanical, or plumbing systems or their parts or the mechanisms or devices that are part of those systems. Location: 5/23/2024-S. RLS. WECA Position: Support if Amended

AB 2696 (Rendon - D) Authorizes a joint labor-management cooperation committee (JLMCC), as specified, to bring an action in court against a direct contractor or subcontractor at any tier for any unpaid wage, fringe or other benefit payment or contribution, penalties or liquidated damages, and interest owed to a wage claimant by the direct contractor for the performance of private work. This proposed expansion of Section 218.8 is unnecessary from an enforcement perspective. Employees of general contractors know the identity of their direct employer. They can file wage claims with the Labor Commissioner, mechanics liens on the property, stop notices with the funding entity, civil lawsuits for non-payment of wages, and claims against payment bonds. AB 2696 encourages needless lawsuits that serve no legitimate enforcement purpose. Location: 5/23/2024-S. RLS. WECA Position: Oppose

AB 2705 (Ortega - D) This union-supported bill provides that, for a violation of public works law, the statute of limitations (SOL) for the Labor Commissioner (LC) to sue a bonding company shall be the same as the 18-month SOL for the LC to issue a civil wage and penalty assessment to the contractor or subcontractor on that project or both. Location: 5/29/2024-S. L., P.E. & R. WECA Position: Oppose

AB 2738 (Rivas, Luz - D) This bill clarifies that the training certification requirements of entertainment events employees may be alternatively enforced by a public prosecutor and adds a public events venue or a contracting entity to the entities that may be assessed a penalty for violating these requirements. Location: 5/23/2024-S. RLS. WECA Position: Oppose

AB 3093 (Ward - D) Creates two new income categories, Acutely Low Income (ALI) and Extremely Low Income (ELI), in the Regional Housing Needs Determination (RHND), Regional Housing Needs Allocation (RHNA), and Housing Element Law. Includes usual SBCTC language Location: 5/29/2024-S. HOUSING WECA Position: Oppose Unless Amended

AB 3265 (Bryan - D) This bill establishes procedures for an environmental leadership media campus, in the County of Los Angeles. The project must pay prevailing wages unless covered by a PLA. Location: 5/22/2024-S. E.Q. WECA Position: Oppose

SB 312 (Wiener - D) The bill would prohibit a public university that has exempted a university housing development project from being eligible to exempt a subsequent university housing development project until the public university has obtained LEED Platinum certification for each building within the prior exempted university housing development project. Existing law requires these projects to use a Skilled and Trained Workforce unless a PLA exists. Location: 5/13/2024-A. NAT. RES. WECA Position: Support if Amended

SB 393 (Glazer - D) This bill requires a CEQA plaintiff to disclose any contributions he or she has received of $1,000 or more to help fund the legal action. It also prevents a CEQA action from being filed against a housing project that was included as part of a larger plan or project already approved under CEQA. Location: 6/3/2024-A. NAT. RES. WECA Position: Support

SB 739 (Ashby - D) If the City of Elk Grove council approves, this new bill would expand this authorization to the City to use CMaR. It requires using a Skilled and Trained Workforce unless covered by a PLA. Location: 5/28/2024-A. L. GOV. WECA Position: Oppose Unless Amended

SB 984 (Wahab - D) SB 984 requires the courts and CSU to identify and select at least three major construction projects by January 1, 2027, that must be governed by a project labor agreement (PLA). DTSC was removed after they reported that "utilizing a PLA for a project increased the cost of the cleanup by approximately 25 percent." Location: 6/3/2024-A. L. & E. WECA Position: Oppose

SB 1022 (Skinner - D) SB 1022 significantly expands existing statutes of limitations for any complaint brought by the Civil Rights Department or its “authorized representative” to ten years. It also gives a court discretion to extend that statute of limitations back even further if it determines that it is “reasonable” to do so. Location: 5/28/2024-A. JUD. WECA Position: Oppose

SB 1116 (Portantino - D) This bill authorizes workers in a trade dispute to collect unemployment insurance (UI) benefits after a two-week wait period while on strike. Location: 6/3/2024-A. INS. WECA Position: Oppose

SB 1162 (Cortese - D) This bill expands existing law, which requires contractors and bidders on public projects to use a skilled and trained workforce, by also requiring them to report the date of birth of each worker every month Location: 6/3/2024-A. L. & E. WECA Position: Support if Amended

SB 1243 (Dodd - D) This bill changes the length of certain campaign contribution windows, increases the size of the maximum contribution amount, and adjusts certain definitions and deadlines in the Levine Act. Location: 5/28/2024-A. ELECTIONS WECA Position: Support

SB 1321 (Wahab - D) This bill, sponsored by the California Labor Federation and the Western States Council of Sheet Metal Workers, changes standards on ETP funds by prioritizing high-quality training programs, requiring plans for targeted recruitment and hiring plans, and increasing transparency and data submission to support accountability of public funding. A coalition of opponents states, “This bill poses a significant threat to the vital interests of manufacturers and small, diverse businesses throughout the state of California. SB 1321 proposes fundamental changes to the Employment Training Panel (ETP) that would render the very businesses that fund the program ineligible to participate. Such a change would undermine the essence of the ETP, jeopardizing the development and sustainability of California's workforce." Location: 5/28/2024-A. L. & E. WECA Position: Oppose
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Rare Win for California Employers In Naranjo v. Spectrum Security Services, the case’s second appearance before the California Supreme Court in two years, the Court confirmed that an employer does not incur civil penalties for failing to report unpaid wages or any other required information on a wage statement if the employer reasonably believed that it was providing a complete, accurate wage statement. Naranjo is a rare win for employers in the California Supreme Court. When facing a class action, employers often face significant liability due to stacking derivative claims, such as Labor Code sections 203 and 226 claims. This ruling reduces the risk of some liability employers may face. Nevertheless, the Supreme Court clarified that the “knowing and intentional” standard applies only to whether employers are subject to monetary penalties for violating Labor Code section 226. Accordingly, if an employee successfully brings an action for injunctive relief to ensure compliance with Labor Code section 226, a plaintiff could still recover costs and attorneys’ fees. More, More, and More.
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Half of Assembly Signs Letter Urging Rejection of Governor’s Proposals to Suspend NOL Deduction and Limit Tax Credits A bipartisan group of 40 state Assembly members – half of the house’s membership – signed a May 22 letter asking leadership to reject Governor Gavin Newsom’s proposal to suspend the net operating loss deduction and limit tax credits for research and development. The letter by Assembly Member Cottie Petrie-Norris, a Democrat from Irvine, was signed by 32 of the Assembly’s 62 Democrats – including Assembly Member Jacqui Irwin, who chairs the Assembly Revenue and Taxation Committee – and eight of the house’s 18 Republicans. If the lawmakers remain opposed, the governor’s proposed NOL suspension and tax credit limitation would fall far short of the 54 votes needed to clear the Assembly. CalTax is leading a coalition opposing the tax increases, noting that the tax increases would harm the economy, lead to job losses, and have long-term negative impacts on the economy and tax revenue. The lawmakers’ letter, addressed to Assembly Speaker Robert Rivas and Assembly Member Jesse Gabriel, who chairs the Assembly Budget Committee, states in part: “California has been the birthplace for the breakthroughs and innovations that have shaped the modern world and have, consequently, built California into the world’s fifth largest economy. We strongly urge you to preserve the R&D tax credits and NOL deductions that will help fuel innovation, create great jobs, and deliver continued economic growth and prosperity for the Golden State.” [CalTax]
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Sinema Urges Business Leaders to Prioritize Arizona’s Best Interests At the recent Arizona Chamber of Commerce & Industry’s annual Update from Capitol Hill luncheon, Arizona Sen. Kyrsten Sinema (I) urged business leaders to overcome partisan divides and advocate for common sense legislation that puts Arizona first. Sinema called on the business community to engage in the legislative process and avoid extreme political rhetoric. More



Supervisor Karen Speigel WECA proudly supports Riverside County Supervisor Karen Speigel, shown here with WECA Southern California Government Affairs Representative Dave Everett at her May 23, 2024, re-election event. Unlike its neighbors to the north and south, Riverside County embraces fair and open competition when it has a public works construction project. This not only saves taxpayers millions of dollars, but it also allows the 98% of black and Latino contractors (who choose to work in a non-union environment) to participate and bid on those jobs. Supervisor Spiegel has been an elected public servant since 1996, serving in several positions in the City of Corona, including City Treasurer and Council Member, and serving four times as Mayor. First elected in 2018 and sworn into office for her second term on January 10, 2023, Supervisor Karen Speigel will likely be the only Republican Riverside County Supervisor after this year when Republican Supervisor Kevin Jeffries retires. Democrat former Assemblyman Jose Medina (who passed a Project Labor Agreement on construction at Riverside Community College District in 2010) is running to replace supervisor Jeffries. He faces Democrat State Senator and retired General Richard Roth this November. Regardless of the outcome, WECA’s government affairs team will continue to make sure our members’ voices are heard in Riverside County, which is the geographic size of Massachusetts, and has a population larger than New Jersey.



Republican Labor Board Nominee Brings Quiet Power to Major Cases President Joe Biden’s nominee for a Republican spot on the National Labor Relations Board, Joshua Ditelberg, may be the most prominent labor attorney you’ve never heard of. A partner at Seyfarth Shaw LLP in Chicago, he’s spent the last three decades quietly shaping some of the most consequential issues in the field—from joint employment and corporate restructuring to race-related protests in professional football—all while going out of his way to eschew personal recognition, those who know him say. Story

Legislature It was another big deadline week in California’s Legislature: To keep bills alive for this session, legislators have until tomorrow to get them through the house where they were introduced.

The week started with 553 measures in the Assembly and 365 in the Senate. Already, the Assembly has passed 304 bills and the Senate 129.

Both chambers held floor sessions every day this week to vote on bills.

PLA's Cost Doesn’t Deter Senate The State Senate approved SB 984 (Wahab) on a 28-10-2 vote. It requires the courts and CSU to identify and select at least three major construction projects by January 1, 2027, that must be governed by a project labor agreement (PLA). DTSC was removed after they reported that “utilizing a PLA for a [DTSC] project increased the cost of the cleanup by approximately 25 percent.”

UI for Strikers Once Again The Senate passed SB 1116 (Portantino) on a 22-12-6 vote to give striking workers unemployment insurance. Governor Newsom vetoed the same bill last year. California is largely in historic debt (approx. $20 billion) due to the COVID-19 pandemic and the resulting statewide shutdown. As a result, California employers are already paying increased UI taxes pursuant to federal law and are likely to face ongoing tax increases until approximately 2034.

Trouble for ETP Grants (Wahab) The Senate passed SB 1321 (Wahab) to change the criteria for Employment Training Grants. A coalition of opponents states, “This bill poses a significant threat to the vital interests of manufacturers and small, diverse businesses throughout California. SB 1321 proposes fundamental changes to the Employment Training Panel (ETP) that would render the very businesses that fund the program ineligible to participate. Such a change would undermine the essence of the ETP, jeopardizing the development and sustainability of California's workforce." The vote was 30-9-1.

Longer Exposure for Employers and Longer Wait for Workers The Assembly passed AB 2135 that will: 1) Extend the statute of limitations on complaints submitted to the Labor Commissioner from 18 to 24 months. 2) Allows the Labor Commissioner to continue ongoing investigations for up to 18 months beyond the statute of limitation for good cause. 3) Prohibits an open investigation from being closed solely due to the Statute of Limitations being reached. The vote was 56-4-20.

More Work for Handy-Persons The Assembly passed AB 2622 (Carrillo) 57-0-23 to raise the floor for a contractor license to $1,000 from $500. The handyperson would be prohibited from installing, replacing, substantially altering, or extending electrical, mechanical, or plumbing systems or their parts or the mechanisms or devices that are part of those systems.

Ever-Changing PW Rates The Assembly passed AB 2182 (Haney) 65-5-10, which, among other provisions, allows the prevailing wage applicable to a public works project to be adjusted whenever an updated wage rate is determined by DIR! It recasts the method for annualizing benefit computations and repeals any previously issued determinations. If the governor signs the bill, contractors must consider a contract clause to hold the contractor harmless for wage changes mid-contract.
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Solar Plunge: California experienced its worst first quarter for rooftop solar installations in more than a decade, according to a federal report, continuing a steady decline since the state cut reimbursement rates for excess solar power generated on homes, reports Politico. A new report from the Department of Energy’s Lawrence Berkeley National Laboratory finds that rooftop solar installations fell off after California implemented its net metering reforms last spring. The state averaged roughly 8,000 installations per month in the first quarter of 2024, the lowest of any month since May 2020. The report looks at a year of data since the California Public Utilities Commission made sweeping changes to the state’s net metering rules, instituting a system known as the net billing tariff. That rate design sharply cut the amount solar owners could get for excess solar sent back to the grid. But it made the rates variable and based on time, so customers would be paid more for sending back power when the grid was most stressed in the early evening.
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I’m Not Leaving California Democratic Rep. Katie Porter “introduced a bill this week that would force presidents and vice presidents to disclose their tax filings for the two years before entering the White House, for the years while in office, and for two years afterward. It would also compel them, along with close family members such as children, siblings, and in-laws, to disclose payments from foreign entities and large gifts and loans from family members.” But “other Democrats raised objections to the proposal as word of it circulated, seeing it as unfairly equating the business conflicts of the Trumps and Bidens.” The White House said it opposed the bill. Meanwhile, another group of Democrats introduced a proposal requiring congressional approval to allow a president to receive payments from a foreign government. Sigh, #yesterdayslettuce.
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Hard Bargaining or Unlawful Bargaining: What A Difference A Board Member Makes The National Labor Relations Board (NLRB) recently held that an employer’s proposal and adherence to proposals could be deemed unlawful bad-faith bargaining. District Hospital Partners, 375 NLRB No. 55 (5/8/2024). The case is significant in two regards. First, the same case had been before the NLRB in 2021 before a Republican majority board, which voted 2-1 to overturn the administrative law judge’s (ALJ) decision and found no unlawful practices. Later, that decision was vacated based on a possible conflict of interest by one of the majority members. Upon reopening the matter, a new panel, this time having a majority of Democratic appointees, voted 2-1 to affirm the ALJ’s decision and to order significant relief. Second, the NLRB indicated that the employer’s maintenance of three proposals was sufficient to justify a finding of bad faith bargaining. This runs counter to a long history in which the board rarely relied on the content of an employer’s non-final proposals in finding bad-faith bargaining. More
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NLRB Judge Finds Amazon CEO’s Comments About Unions Unlawful A San Francisco administrative law judge (ALJ) for the National Labor Relations Board (NLRB) recently found Amazon CEO Andy Jassy’s comments about unions to be unlawful. Whether that ruling will be upheld on appeal is questionable. Employers should be free to articulate and lead their company’s workplace culture. The ruling is an “extreme infringement” not just on the First Amendment but also on Section 8(c) of the National Labor Relations Act (NLRA), which gives management representatives broad leeway to state opinions about how they prefer to work with employees, said Phil Wilson, president and attorney with LRI Consulting Services in Broken Arrow, Okla. That section states that expressing any views, arguments, or opinions should not constitute an unfair labor practice if such expression contains no threat of reprisal or force and no promise of benefit. Wilson said no reasonable person could view Jassy’s comments about unionization as threatening or coercive, calling Jassy’s remarks “well within the bounds found to be lawful” by courts. He predicted that even if the NLRB affirms the board ALJ’s decision, which Amazon announced it would appeal, an appeals court later will rule in Amazon’s favor. Story
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Julie Su Squeezed by Congress over California’s Lost Covid Billions Please excuse acting Secretary of Labor Julie Su for feeling these are her bespoke End Times. Reared in California’s progressive microclimate—where identity politics and powerful government unions are a Patriot missile defense shield against charges of incompetence and corruption—Su is unaccustomed to tough questions. That was fine in Sacramento, where Su served as Governor Gavin Newsom’s Secretary of Labor. Now, in Washington, D.C., other than “Tell us how you start your day,” tough questions are just about the only questions Su gets. Congressional Republicans want to know how the hell she lost about $33 billion to criminals, inmates, and international crime gangs while stiffing the federal government on a $20 billion loan to backstop soaring unemployment benefits during COVID-19. Story
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Kari Lake Releases Ad Focused on Immigration 2022 Arizona GOP nominee Kari Lake's (R) campaign released a new ad in her bid for Arizona Senate titled “Big Differences.” The ad features Arizonans discussing President Biden's and Rep. Ruben Gallego's (D-AZ 03) border policies. In the ad, Lake promises to finish the wall and "stop the invasion." The border and immigration have consistently been successful messaging points for Republicans across the country. It is a winning subject in Arizona, where immigration and the border are not abstract concepts. Meanwhile, abortion is a successful messaging point for Democrats—a topic on which Lake has recently struggled to stay consistent. Ad
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Gov. Hobbs Signs Bill to Expand Small Home Construction Arizona Gov. Katie Hobbs signed two bills related to affordable housing on May 21: one that would allow for the construction of casitas, or tiny homes, in residential backyards and another to encourage the development of duplexes, triplexes, and townhomes.
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House Education and the Workforce Committee Hearing Exposing Union Tactics On May 22, The House Education and the Workforce Committee held a hearing entitled, “Big Labor Lies: Exposing Union Tactics to Undermine Fair Elections.” Witnesses for the majority included Bill Messenger, VP and Legal Director of the National Right to Work Legal Defense Foundation; Michael Alcorn, Crew Member at Trader Joe’s; and Stephen Delie, Director of Labor Policy at the Mackinac Center for Public Policy. The minority witness was Lynn Rhinehart, Senior Fellow at the Economic Policy Institute. The hearing was livestreamed at 10:15 AM ET and is available here.
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Mercedes-Benz Votes Against Unionization

On May 17, workers at the Mercedes-Benz plant in Vance, Alabama, voted 2,642 to 2,045 against United Auto Workers (UAW) representation. About 93% of eligible workers participated in the vote, and 56% of the votes were cast against representation. In response to the loss, UAW President Shawn Fain said, “This is a David and Goliath fight. Sometimes Goliath wins a battle. But David wins the war.” Given Fain’s position on Gaza, this statement may have been a poor choice. The outcome may slow the UAW’s Southern campaign and highlight the importance of—but it certainly demonstrates the effectiveness—of secret ballot elections.
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These Shoes are Made for Walking The U.S. Chamber of Commerce and a coalition of business groups are filing a lawsuit in the U.S. District Court for the Western District of Texas, Waco Division against the U.S. Department of Labor’s Occupational Safety and Health Administration’s Worker Walkaround Representative Designation Process final rule. Read the news release announcing the lawsuit. Effective May 31, the final rule will allow employees to choose a third-party representative, such as an outside union representative or community organizer, to accompany an OSHA safety inspector during site inspections, regardless of whether the workplace is unionized or not.

Unions Want All ETP Money This should come as no shock to any reader, or virtually anyone from the Western Spiral Arm of the Milky Way Galaxy, that unions desire to leave nothing on the table. A great example is the constant downward floor for PLAs, which are often touted as beneficial for large, complex projects like the Hoover Dam, but now are imposed with thresholds of only $250,000.

Witness what’s going on with the Employment Training Panel (ETP).

The ETP was established approximately 30 years ago to work directly with employers to upskill employees. ETP allocates funding to qualified businesses through an employment training tax of .1% of wages, collected by EDD from businesses, as well as alternative funding intended to support policy initiatives and public sector employers (such as funding from the California Energy Commission under its Clean Transportation Program to provide training in alternative fuels and vehicle technologies). In 2019-20, ETP also administered five pilot programs using alternative funding, including the Clean Transportation Program. Annual employer contributions to the fund are about $250 million.

ETP is governed by eight panel members: Three members are appointed by the Governor. Two are appointed by the Speaker of the Assembly. Two are appointed by the Senate President Pro Tempore. The Director of the Governor’s Office of Business and Economic Development (GO-Biz), or his/her designee, serves as ex-officio, voting member. Here are the current members.

Douglas R. Tracy is a Business Manager with SMART (International Association of Sheet Metal, Air, Rail and Transportation Workers), a union that combines sheet metal workers and transportation workers. Senate Appointee.

Gretchen Newsom is, according to her ETP profile, a “community leader and advocate of working families.” But she is also Political Coordinator for the Ninth District of the IBEW. IBEW’s Ninth District represents workers in California, Nevada, Oregon, Washington, Alaska, Hawaii, and northern Idaho, as well as in Guam and Saipan. Assembly Appointee.

Chris Dombrowski is the Chief Deputy Director of Governor’s Office of Business and Economic Development (GO-Biz) and serves as Ex-Officio.

Madison Hull is the Director of Service, District Council 16 International Union of Painters & Allied Trades, is a member of Tradeswomen Inc. and has served as Business Representative, Glaziers LU718 San Francisco, and Communications & Political Director. Senate Appointee.

Rick Smiles is President of Laborers’ Local 89, a position which he still holds today along with proudly serving as a field representative for the Southern California District Council of Laborers. Governor Appointee.

Michael Hill has been Senior Director of Talent and Organization Development at Applied Materials since 2015. He was Director of Learning and Development at Lam Research from 2008 to 2013 and at Spansion from 2005 to 2008. Governor Appointee.

Rebecca Bettencourt Senior Manager of Workforce Development and Corporate Education at E. & J. Gallo Winery since 2011. She was Manager of Training and Call Quality for the California Telephone Access Program at Communication Service for the Deaf from 2009 to 2011. She was Regional Training and Development Manager for Gate Gourmet from 2008 to 2009 and Training, Development and Operational Skills Training Manager for Hilton Hotels from 2000 to 2008. She is Chairperson of ETP and a Governor Appointee.

Jennifer Fothergill is on the Northern California Chapter NECA staff and will be working closely with the Alameda Division members, as well as doing the Business Development/Government Relations for Alameda County. Governor Appointee.

The ETP also funds training for unemployed workers and provides additional incentives to assist small businesses and employers in high unemployment areas of the state and targets employers that are threatened by out-of-state competition or that compete in the global economy and provides funds to offset the cost of training. The ETP requires contractors to notify employee representatives of their desire to participate in a contract. Contractors must send a notice of intent to their respective employee representatives explaining the proposed training program and provide the representatives with an opportunity to participate in development of the ETP contract. In addition, the union(s) must send a union support letter to ETP granting their support for the proposed training program and verify that they were able to participate in the development process. Both the notice of intent and union support letter must be submitted along with the complete ETP application.

The ETP is performance-based and requires employers to provide proof of completed employee training hours, as well as proof that upskilled employees have earned specified wages for specified periods before the employers can be reimbursed. Contract terms last a maximum of two years, and all training must be delivered within 21 months or less. Since its inception, ETP has reimbursed employers over $1 billion for training workers in more than 80,000 businesses.

The ETP is also required to annually update a three-year strategic plan that addresses the demand for trained workers by industry, type of training, and size of employer. Based on the update, ETP identifies priority industry sectors and authorizes related projects to receive 20 percent more funding than standard reimbursement rates and identifies strategies to meet the needs of small businesses, including, but not limited to, those small businesses with 100 or fewer employees.

But, back to the money. Governor Newsom has proposed using $100 million of employer contribution to ETP to pay part of the interest the State owes the Feds for the UI loans made to California to cover the billions the State wasted during COVID by sending UI payments to prisoners and out-of-state scammers. Employers are responsible for the principal, but the interest owed is an obligation of the State’s general fund. So, Newsom, being the clever guy he is, figured out a way to saddle employers with both the principal AND interest.

Cue the California Labor Federation Western States Council of Sheet Metal Workers, who have co-sponsored SB 1321 by State Senator Aisha Wahab. You may recall Wahab is also the author of SB 984, which mandates the use of PLAs on State construction.

SB 1321 directs ETP to give funding priority to projects that:

·        Develop workers with skills necessary to work with new technologies or methods;

·        Develop high road jobs for workers, with demonstrated wage progression;

·        Meet the standards established by DAS for high quality training programs;

·        Provide support for training needs and gaps, or existing programs, and not replace, parallel, supplant, compete with, or duplicate existing apprenticeship programs that are registered with DAS and serve workers in a region.

·        Promote hiring, training, and advancement of disadvantaged, marginalized, and underrepresented workers. This may include participation in an apprenticeship program that is approved by DAS and subject to the State of California Plan for Equal Opportunity in Apprenticeship, or by using other strategies and partnerships to achieve equity goals.

It also updates minimum standards for ETP proposal consideration to include:

·        The amount of fringe benefits to be paid to trainees;

·        Proof of workers’ compensation insurance; and

·        A plan to recruit, hire, and advance workers from disadvantaged, marginalized, or underrepresented communities, including through participation in an apprenticeship program approved by the Division of Apprenticeship Standards and subject to the State of California Plan for Equal Opportunity in Apprenticeship or other strategies and partnerships.

Does any of that cause readers to suspect that construction unions want more ETP money? It has caused a diverse group of business groups to worry they may lose much of the training money they receive.

WECA-ATC has obtained grants for several years, which have been used to enhance apprenticeship curricula and training and is part of a broad business coalition pushing back. But several WECA members have also been ETP recipients. WECA encourages any WECA member who has received ETP funding in the past to reach out to their State Senator to express their concern. Contact WECA Government Relations staff for help with messaging.
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California Pay Data Reporting Compliance Deadline California’s pay data reporting deadline was May 8, 2024. Any employer with 100 or more employees, with at least one worker in California, was required to comply with the state’s updated reporting requirements. How and if employers use, supply, or otherwise hire contractors will separately affect how those employers are covered under this law. In other words, this may apply to a wide variety of employers, regardless of their location. Story
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Fired Up About a Labor Leader’s Comments As she stood before a crowd of county employees, Brigette Browning, leader of the San Diego and Imperial Counties Labor Council, made several remarks about San Diego County Chair Nora Vargas. “I want to talk about our chair, the chingona, who says she’s here for workers, but she’s making backroom deals with [Jim] Desmond and [Joel] Anderson, that doesn’t seem like someone that’s supporting workers to me,” Browning said. Labor leaders are upset that their pick for the county’s next chief administration officer, Cindy Chavez, didn’t get an interview for the job. She had been offered the job last year, but the county rescinded the offer after former County Supervisor Nathan Fletcher announced his abrupt resignation. They held a rally outside the county building last week, and that’s when Browning made her comments. She started a chant using a term in Spanish that’s slang for several things, but that in that context could translate to “you have to be kidding me.” La Prensa San Diego reported that she went on to use another slang, and mockingly refer to Nora as a chingona. That’s a term used to describe a strong and independent Latina woman. Now, Latino community and nonprofit leaders are demanding an apology. They felt that Browning’s use of the word was to belittle and discriminate against Nora. And one group is asking for her to resign. [VOSD]
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Hobbs Signs Historic Water Rights Agreement with Colorado River Indian Tribes First People along the Colorado River now have rights to their own water. It’s a historic agreement and a big win for the Colorado River Indian Tribes and their community. The agreement gives tribes the right to lease, exchange, store, or conserve their portion of Colorado River Water. The new legislation was signed by Arizona Governor Katie Hobbs, Secretary of the Interior Deb Haaland, and CRIT tribal chair Amelia Flores. WECA’s Bob Bartlett applauded the historic agreement. More
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Cowboy Hovde Arizona residents may have seen a peculiar face on their airwaves recently: Eric Hovde, a GOP Senate candidate running for office in … Wisconsin. The Senate hopeful remains CEO and chair of Sunwest Bank. And despite carpetbagger allegations, Sunwest ads starring Hovde are continuing to air out west in Arizona as recently as this month, per analytics reviewed by Inside Congress. In one, Hovde is wearing a cowboy hat and riding a horse outside an Old-West-style saloon as patrons raise a ruckus over their bank services (words can’t really do this justice, so please watch for yourself). While it’s not unusual for non-incumbent political candidates to continue working while running for office, it’s a tricky line for Hovde. He’s already faced massive backlash from Democrats who argue he primarily lived in California prior to running for office. Ads starring Hovde continuing to run in another state—out west, no less—contribute more fodder to Democrats’ case. Sunwest has locations in Arizona, California, Florida, Idaho, and Utah, as per its website. [Politico]
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It Pays to Be Green Many of the leaders of major environmental and conservation groups take home lucrative annual compensation packages, according to tax documents nonprofits must release publicly. The heads of influential groups, including the World Wildlife Fund, Environmental Defense Fund, and Nature Conservancy, are among the top-paid leaders in the environmental movement, according to an E&E News analysis of 29 groups’ most recent tax filings.

1. Carter Roberts, President and CEO of the World Wildlife Fund Roberts, who has led the massive international conservation group since 2005, remains one of the world’s top-paid environmental leaders. According to the World Wildlife Fund’s tax records, his base pay in 2022 was $904,841, and his total reported compensation that year was $1,204,775.

2. Fred Krupp, president, Environmental Defense Fund The group's records show that Krupp, EDF’s leader for nearly four decades, took home base pay of $669,771 in 2021. Krupp’s total compensation that year was $922,022.

3. Jennifer Morris, CEO of the Nature Conservancy Morris started as the conservation group’s CEO in May 2020. According to the tax filing, she earned $732,138 in base pay during her first full year on the job in 2021, for a total compensation of $758,013.

4. Elizabeth Gray, CEO of the National Audubon Society Gray was promoted in November 2021 to the group’s permanent CEO. Her base pay that year was $462,069; her total compensation was $705,458. The tax filing says her pay that year included a contractual retention and sign-on bonus. She also received a discretionary bonus of $46,514 approved by the board of directors. (Gray’s predecessor, David Yarnold, left in May 2021. His total compensation that year was $1,276,173, including severance and other benefits.)

5. Mitchell Bernard, Interim President, Natural Resources Defense Council

NRDC’s then-Executive Director Bernard stepped in to lead the group in early 2021 when Gina McCarthy left her post as president and CEO to join the Biden White House. Bernard held the role through August of that year and is now NRDC’s chief counsel. His base pay in 2021 was $479,498, the records show. His total compensation that year was $705,195.

6. Janis Searles Jones, CEO, Ocean Conservancy

Jones has led the ocean conservation group since 2017. Her base compensation in 2022 was $440,860, the latest filing shows. Her total compensation that year was $692,836.

7. Jamie Rappaport Clark, President and CEO, Defenders of Wildlife

Clark, who has led her conservation group since 2011, said she plans to step down this year. In 2022, Clark’s base pay was $531,907, according to the group’s most recent tax filing. Her total compensation was $616,137.

8. Andrew Sharpless, CEO, Oceana

Sharpless has served as the international conservation group’s president since 2003, and recently announced plans to retire. His base pay in 2022 was $499,936, and his total compensation that year was $546,078. Jim Simon, Oceana’s longtime president, will take over as the organization’s CEO on July 1.

9. Adam Putnam, CEO, Ducks Unlimited

The former Florida Republican congressman has led the conservation group since 2019. His base pay was $339,805 in 2021, and his total compensation that year was $538,303.

10. Abbie Dillen, president, Earthjustice

Dillen took over as the green group’s leader in 2018. She earned base pay of $473,920 in 2021, and a total compensation package of $536,931.

11. Theresa Pierno, president and CEO, National Parks Conservation Association

Pierno has been with the conservation group since 2004 and took the helm in 2015. Her base pay in 2021 was $417,327, and her total compensation was $536,031, the tax filing shows.

13. Diane Regas, president and CEO, Trust for Public Land

Regas, who joined the conservation group in 2018, earned base pay of $499,283 in 2021, the tax records show. Her total compensation that year: $526,879.

14. Santiago Gowland, CEO, Rainforest Alliance

Gowland joined the global conservation nonprofit as CEO in May 2021. During his first full year on the job, his base pay in 2022 was $430,794. His total compensation that year was $502,967.

15. Christopher Wood, president and CEO, Trout Unlimited

Wood has led the fisheries conservation organization since 2010. His base pay in 2021 was $361,632, and his total compensation that year was $441,847, according to the organization’s most recent 990.

16. Jamie Williams, president, the Wilderness Society

Williams took the helm of the conservation group in 2012 and announced that he plans to step down later this year. Williams’ base pay in 2021 was $395,476, and his total compensation that year was $415,400.

17. Collin O’Mara, president, National Wildlife Federation

O’Mara, who’s running to be governor of Delaware, took over as president of his conservation group in 2014. His base pay in 2021 was $302,096, and his total compensation that year was $385,173, according to the most recent tax record.

18. Kieran Suckling, president, Center for Biological Diversity

Suckling, who co-founded his environmental group in 1989, earned $332,979 in base pay in 2022, the tax filings show. His total compensation that year was $384,131, according to the most recent 990. Suckling’s pay that year included a one-time buyout of unused sabbatical that was available to staff, according to the group.

19. Ken Cook, president, Environmental Working Group

Cook, president and co-founder of the environmental group, earned base pay in 2022 of $312,714. His total compensation that year: $357,378.

20. Gene Karpinski, president, League of Conservation Voters

Karpinski earned $201,923 in base pay in 2022 and $221,244 in total compensation, from LCV. He earned additional pay as president of the League of Conservation Voters Education Fund, an affiliate of LCV: $$108,728 in base pay and $119,131 in total compensation. His total compensation from the two groups: $340,375.

21. Ebony Twilley Martin, co-executive director, Greenpeace USA

Twilley Martin was appointed as Greenpeace USA’s co-executive director in September 2021. Twilley Martin is now the group’s sole executive director. In 2022, her base pay was $147,165 from Greenpeace Inc. and her compensation was $165,384 from that group. Martin also received pay that year from Greenpeace Fund of $147,168, with total compensation of $165,348. Her total combined compensation from the groups: $330,732.

22. Annie Marie Leonard, co-executive director, Greenpeace USA

Leonard served as co-executive director at Greenpeace USA from 2014 until 2023. She earned base pay of $147,035 in 2022 from Greenpeace Inc. and total compensation from that group of $164,413. Leonard’s base pay from Greenpeace Fund was $147,035, and her total compensation was $164,413. Leonard’s total combined compensation that year was $328,826.

23. Whit Fosburgh, president and CEO, Theodore Roosevelt Conservation Partnership

Fosburgh led the conservation group for 13 years until he resigned late last year. His base pay in 2022 was $237,115, and his total compensation that year was $315,829, according to the organization’s most recent 990.

24. Manish Bapna, CEO, World Resources Institute

Bapna, who joined NRDC as president and CEO in August 2021, spent part of that year as interim president and CEO at World Resources Institute. His base compensation that year was $257,607, and his total compensation that year was $290,466, WRI’s tax records show.

25. Johanna Chao Kreilick, president, Union of Concerned Scientists

Kreilick joined UCS in May 2021. Her base pay for the remainder of that calendar year was $265,284, and her total compensation was $278,357, the records show. Kreilick resigned earlier this year and was replaced by acting President Kim Waddell.

26. May Boeve, executive director, 350.org

Boeve, who has spent 13 years as 350.org’s executive director, announced last week that she’s stepping down and that the organization is looking for a new leader to take over later this year. Boeve’s base pay in 2021 was $151,422, and her total compensation that year was $178,205, according to the group’s most recent 990.

27. Erich Pica, president, Friends of the Earth

Pica has led his environmental organization since 2009. His base pay in 2021 was $168,750. His total compensation that year: $177,744, according to the organization’s most recent 990.

28. Wendy Wendlandt, president, Environment America

Wendlandt, whose group is part of the Public Interest Network, received $126,073 in salary in 2021 and total compensation of $136,870 from the network, according to the latest tax filings.

29. Dan Chu, interim executive director, Sierra Club

Chu, the executive director of the Sierra Club Foundation, stepped in as Sierra Club’s interim executive director when Michael Brune left the post in 2021. Chu was acting executive director until September 3, 2022, according to the group’s tax filing. His base pay from Sierra Club was $86,435 in 2022, the tax filing shows, and his total compensation that year was $90,919.

30. Varshini Prakash, executive director, Sunrise Movement

Prakash—who stepped down last year as the Sunrise Movement’s executive director—was replaced by Aru Shiney-Ajay. In 2022, Prakash’s base pay from the Sunrise Movement was $24,779, and her total compensation from that group was $27,013. Additionally, Prakash’s base pay was $57,817 from the affiliated Sunrise Movement Education Fund, and her total compensation from that group was $63,030. Prakash’s combined compensation from those two groups in 2022 was $90,043.
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Dreyers Ice Cream Employees Reject Unionization In two separate National Labor Relations Board (NLRB) elections, nearly 2,000 miles apart, employees of Dreyers Ice Cream, Inc. have rejected unionization by the United Steelworkers and the Teamsters, respectively.

Last week, more than 60 percent of nearly 400 employees employed by Dreyers Ice Cream in Fort Wayne, Indiana voted to reject representation by the United Steelworkers. Story
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Utah Republicans Choose At Utah’s nominating convention—where attendees tend to lean very conservative—the assembled Republicans voted to back challengers to Gov. Spencer Cox (Rep. Phil Lyman) and Reps. Blake Moore (Paul Miller received 54.9% of the vote over Moore’s 45.1%) and Celeste Maloy (Colby Jenkins), The Salt Lake Tribune’s Bryan Schott and Emily Anderson Stern report. The incumbents will all still appear on the primary ballot, and Cox is still favored to win once voting is opened to the whole state. But Maloy came very close to missing the ballot entirely, and she could face a stiff challenge from Colby Jenkins. The convention also tapped Trent Staggs for Senate (Romney’s seat, sob). Staggs is endorsed by Trump, Tuberville, Kari Lake, Charlie Kirk, Matt Gaetz, Vivek Ramaswamy, and a laundry list of “other assorted folk.” Trump posted, “Trent Staggs is 100% MAGA, and is running to fill The Mitt Romney, a Total Loser, Seat as the next Senator from the Great State of Utah!”
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Gavin Goes to the Vatican — Gov. Gavin Newsom will be spreading the gospel of climate resilience mid-May at the Vatican Climate Summit, along with Massachusetts Gov. Maura Healey, New York Gov. Kathy Hochul, Paris Mayor Anne Hidalgo and other local leaders from around the world.

The summit will be the first Vatican climate meeting to bring together experts, policymakers and scientists along with subnational political leaders and communities experiencing the worst effects of climate change, according to Veerabhadran Ramanathan, a professor at Scripps Institution of Oceanography at UC San Diego and a council member of Pope Francis’ Pontifical Academy of Science, who is co-organizing the summit.

“California is an obvious choice [to present] in that California is a leader in both research, in climate actions cutting down emissions and adapting, because we have lost a lot of our forest to fires, floods, droughts, etc.,” said Ramanathan.

Newsom’s office confirmed that the governor, a Catholic, is scheduled to meet with the pope. The governor has sought to expand California’s climate work with international partners in recent months; his office said this will be an opportunity to reach a whole population he otherwise wouldn’t have.

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Correction to April 25, 2024 newsletter: We regret that we misidentified Richard Markuson's title in a photo caption. Richard Markuson now serves WECA in the role of Lobbyist. Rex Hime is WECA's Government Relations Director. We apologize for any confusion.

Left to right: Richard Markuson (Lobbyist); Ian Vander Linden (KS Telecom CEO and WECA Board Member), and KS Telecom employees attend recent Senate Governmental Organization Committee and Labor, Public Employment and Retirement Committee hearings in Sacramento.
 

Let’s Study PLAs Democrats and quisling Republican Senator Scott Wilk joined Senator Aisha Wahab on her quest to impose PLA mandates on all state construction above $35 million. In back-to-back hearings in the Senate Governmental Organization Committee and Labor, Public Employment and Retirement Committee, Wilk joined his Democrat colleagues in advancing Wahab’s SB 984. Wilk’s own noteworthy legislation to help reduce overcrowding at animal shelters across the state by expanding access to low and no-cost spay and neuter services passed out of the Senate Business, Professions, and Economic Development Committee this week.

What was interesting about the hearing was the participation of new PLA opponents. WECA was joined by the Associated Builders and Contractors Northern California Chapter, Associated Builders and Contractors of California, Associated General Contractors of California, Associated General Contractors-San Diego Chapter, Associated Roofing Contractors, Burr Plumbing and Pumping Inc., California Chamber of Commerce, California Highway Construction Group, Inc., Carter/Kelly Incorporated, Casey Construction, Inc., Construction Employers' Association, Diede Construction, Inc., Don Celillo Electric, Electrical & Automation Solutions, LLC, Electrical Services Company, Haggerty Construction, Housing Contractors of California, Imp Electrical & Automation Solutions, LLC, J.I. Garcia Construction, Inc., Modesto Executive Electric, Inc., Robert Colburn Electric, Inc., Stephens Construction, Inc., and W.E. Lyons Construction.

More significantly, the Carpenters Union opposed SB 984. Danny Curtin, the director for the California Conference of Carpenters since 2001, was one of two lead witnesses in the Labor hearing. He noted that PLAs conflicted with their master labor agreements and lacked contractor participation in negotiating terms and conditions. Unfortunately, this didn’t dissuade any of the committee from voting to send the bill along to a hearing in Senate Appropriations and eventually to the floor.

WECA member KS Telecom showed up for the merit shop community in opposition. KS Telecom’s CEO (and WECA Board Member) Ian Vander Linden shared opposition to the bill with some apprentices and employees. While the morning started with a smile, being the only contractor with employees in the room and the bill getting out of committee was frustrating. Ian shared, “This devastating bill should have had a substantial number of merit shop contractors and their employees filling this room, with more overflowing. Getting involved in defending our businesses and employees politically may seem unnerving, but it is beyond necessary.” Thank you to the KS Telecom team for your leadership.
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California’s New Workplace Violence Prevention Plan and Training Requirements Take Effect on July 1, 2024; How to Get Ready Employers must implement a comprehensive workplace violence prevention plan (WVPP) and provide employee training on the WVPP by July 1, 2024. The WVPP requirement (under California Labor Code Section 6401.9), augments the existing obligation for California employers to create and maintain an injury and illness prevention plan and is intended to combat incidents of workplace violence, which is the second leading cause of fatal occupational injuries in the United States, according to OSHA. The new compliance requirements are described, along with steps employers can take to get ready. Story
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“Walkaround” Rules Coming On May 31^st, Fed-OSHA’s rules regarding employee representation during OSHA inspections will go into effect for most of the country. The so-called “walkaround” rule will ultimately come to California. Fed-OSHA says a regulatory change is to ensure “necessary information about worksite conditions and hazards.”

One attorney representing employers calls it a “thank you” to labor unions. But, he says, that’s not what worries him. Eric Conn of Conn Maciel Carey opines that whether Fed-OSHA intends it to apply to purely safety and health issues, the unintended consequences could be troublesome.

The regulatory change clarifies that a representative could be either an employee of the employer or a third party and that a third-party representative may “have a variety of skills, knowledge, or experience that could aid the OSHA inspection.” However, representatives have not been limited to those with such skills.

Currently, OSHA rules state that during a physical inspection of a workplace, representatives of both the employer and employees shall have the opportunity to accompany the compliance safety and health officer on the walk-through. However, under the rule, the employee representative must be an employee, with an exception for a third party when the inspector deems it necessary. Examples are supposed to include safety engineers and industrial hygienists.

However, in 2017, a federal district court ruled that such third parties are not consistent with the regulation, 29 CFR 1903(8)(c). At the same time, the court said that OSHA’s interpretation that third parties could be third-party employee representatives was “persuasive and valid.”

OSHA says the revision retains the CSHO’s authority to determine whether such an individual is “reasonably necessary,” and they can deny the right of accompaniment to individuals “whose conduct interferes with a fair and orderly inspection.”

Helen Cleary, director of the Phylmar Regulatory Roundtable OSH Forum, says the organization has expressed concern that “allowing any person authorized by an employee to accompany the walkaround would have unintended security and safety implications. We believe the new language expands the scope, and walkaround inspections will be impacted in new ways.”

Others argue that an outsider gaining knowledge could compromise not only physical security but also the security of intellectual property, proprietary processes, and legal rights.

Will this be a big deal for California? “I think potentially yes, but perhaps not for the reasons people think,” Conn tells Cal-OSHA Reporter. The unintended consequences, he says, are twofold. “The one that has me up at night is the plaintiff’s attorney or expert,” Conn says. “You could very easily imagine a situation where there’s a serious incident, even a fatality, and family members reach out to a coworker who recommends an attorney.”

“They would seem to meet the criteria that OSHA has set up be an acceptable representative. Now you would have plaintiff’s attorneys and experts foregoing the rules of civil procedure and getting access to workplaces, witnesses, and records, and the accident site, and physical evidence, [with] access to information they would never get under the rules of procedure.”

“The other scenario is a disgruntled former employee who submits a complaint, legitimate or not, then reaches out to current employees to convince them to suggest him or her to represent them in the walkaround. The person could be trying to cause trouble,” Conn suggests, “steal proprietary information, convince former coworkers to lie, or even commit an act of [sabotage or] violence. Those are the kinds of things I am very concerned about,” Conn says.

The Department of Industrial Relations tells Cal-OSHA Reporter that the Division of Occupational Safety and Health intends to adopt the federal rule, although it does not have a timeline for adoption. “It will not be submitted” for a Horcher (verbatim) adoption, DIR says. “We can say that our proposal will be at least as effective as the federal rule.”

The fact that the state adoption will not be done under the Horcher process suggests there could be advisory talks with the regulated community. DIR says, “Cal/OSHA is currently reviewing and will make a determination on how to move forward.”

Conn urges DOSH to limit the state regulation to “individuals with a technical credential,” such as an IH or safety engineer.

He also predicts that “there will be challenges” to the federal regulation in court. “There are some serious defects with this rule.” He says it contradicts the National Labor Relations Act, which defines how elected representatives in a workplace are chosen. “It’s by majority vote,” Conn says.

“The real core issue here is property owners’ rights to exclude unwelcome third parties from their workplace. OSHA has a right to come in when they’ve made a proper showing under the Fourth Amendment,” but the regulatory change could “force us to accept these unwelcome visitors.” [Cal-OSHA Reporter]
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I hope you’re sitting down; Biden Scores Major Union Backing as Its Leaders Attack Trump Joe Biden landed a significant union endorsement from North America’s Building Trades Unions, whose leaders say the president has his infrastructure bill largely to thank for it. In making one of their earliest-ever presidential endorsements, NABTU leaders are kickstarting an eight-figure organizing program to try to deliver their 250,000 members in the battlegrounds of Pennsylvania, Michigan, and Wisconsin for Biden. The Teamsters, whose endorsement is being pursued by both Biden and Donald Trump, are members of NABTU but abstained from Tuesday’s board vote, according to people briefed on the proceedings. They will endorse after the Republican and Democratic conventions. Story
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How Biden’s Apprenticeship Push Could Affect Builders President Joe Biden’s recent executive action to bolster registered apprenticeships as a pathway to high-paying jobs—including union jobs—has many implications for contractors that perform federally funded work. The March executive action—which is not legislation—directs federal agencies to reduce barriers and create pathways into federal employment through registered apprenticeships and expands the use of registered apprenticeships through grants and contracts. It also re-establishes within the federal government labor-management forums tools used by union members and management to jointly improve their workplaces. In addition, the Department of Labor is considering a rule change that would revise regulations for registered apprenticeships by updating worker protections and better-establishing pipelines to registered apprenticeship programs. Although the Biden administration’s efforts could spell good news for a labor-strapped industry like construction, both fans and critics of these moves also see them as a push to support unions, a key part of Biden’s platform. Story
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High-Priced Work Construction is underway for expensive “affordable” housing in San Diego. Voice of San Diego reported that the estimated cost per unit for the Cuatro development in City Heights is $842,000! Story
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Have you ever been stopped by law enforcement and asked, “Do you know how fast you were driving?” Under amendments adopted this week, a bill to physically limit passenger vehicles from speeding would now only require a passive warning system. Sen. Scott Wiener's SB 961, introduced in January, would have mandated "speed limiters" on new passenger cars, trucks, and buses starting in 2027 that restricted them from going more than 10 miles per hour over the speed limit. The San Francisco Democrat amended it ahead of its first hearing Tuesday to require just visual and audio signals that alert drivers when they've exceeded the speed threshold. The mandate would only apply to half of new vehicles starting in 2029 and all new vehicles by 2032. "We heard feedback from colleagues that people were not comfortable with an active physical barrier to going above a certain speed," Wiener said in the hearing. "People might need to go at a higher speed. We listened, we heard, worked with the committee, and changed it." The bill passed the Senate Transportation Committee 8-4 along party lines. [Politico]
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Arizona Legislature Returns to Capitol with Big To-do List With regular committee hearings now wrapped up for the legislative session, the state Legislature returned to the Capitol under a one-day-a-week schedule. The House and Senate will conduct floor sessions to determine the fate of bills that have made their way through the committee process in both chambers, deciding whether to send them to the governor to be signed or vetoed. Story
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DOL Announces New FLSA Overtime Salary Threshold On Tuesday, April 23, the U.S. Department of Labor announced a rule to significantly increase the salary level needed to qualify for the FLSA's overtime exemptions applicable to executive, administrative and professional employees to $844 per week ($43,888 annualized). The rule will also increase the total compensation needed to qualify for exemption under the test for highly compensated employees to $132,964 per year. These figures will be effective on July 1, 2024 but will increase again, effective January 1, 2025. On that date, the rule will increase the salary basis threshold to $1,128 per week ($58,656 annualized), and the threshold for exemption for highly compensated employees to $151,164 per year. Under the rule, these salary levels will be subject to automatic increases every three years. While legal challenges to the new rule are expected, employers should not wait for those challenges to be resolved before assessing the rule's impact on their operations and considering potential changes. In this webinar, we will review the new rule, discuss the expected legal challenges and provide recommendations for employers who may be impacted. [Littler]
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Maybe Losing an Election Isn't So Bad Some readers may recall Mike Allen. Mike was a member of the Santa Rosa Planning Commission and District Director for then-State Senator Pat Wiggins. Allen was elected to succeed Noreen Evans as the representative of the 7th Assembly district, winning 63.8% of the vote in the general election. He served as Assistant Majority Floor Leader. The statewide redistricting in 2011 significantly changed the 7th District, and the redrawn district excluded Allen's residence. Allen moved to San Rafael in Marin County to run for election in the open 10th Assembly district in 2012 but lost to San Rafael City Councilman Marc Levine. Marc, an affable liberal Democrat, served 10 years in the Assembly before running unsuccessfully in the June 2021 Democratic Statewide Primary for California Insurance Commissioner, gaining just 18% of the votes and losing to the incumbent Ricardo Lara with 35.9% of the votes. Lara went on to win reelection in the November 8, 2022 General Election against Republican Candidate Robert Howell (who?).

But what happened to Mike? Former Speaker John Perez appointed him to the Unemployment Insurance Appeals Board in 2013. Governor Gavin Newsom just reappointed Mike to an additional term. The UIAB salary is $181,156. A state Legislator? $128,215 (plus per-diem of $214 per day).

The Board is a popular purgatory for former legislators; three of the current four members are Legislators with no apparent interest in doing anything other than feeding on your tax dollars.
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Win for Property Owners The U.S. Supreme Court unanimously agreed with Pacific Legal Foundation (PLF) client George Sheetz that the government couldn’t force property owners to pay exorbitant development fees as a condition for approving building permits. This win is PLF’s 18th out of the 20 cases they’ve litigated at the Supreme Court and their tenth since 2018. El Dorado County, where George built his home, passed a law requiring homebuilders to pay thousands of dollars in “traffic impact fees” if they wanted a building permit. George, who just wanted to install a manufactured home on his property, was stuck with a $23,420 bill. George sued the county, with the help of former PLF attorney Paul Beard. PLF joined Paul as co-counsel to litigate George’s case at the Supreme Court. They argued legislatures aren’t exempt from Supreme Court precedent protecting property rights—and in the decision, the Court agreed. “Nothing in constitutional text, history, or precedent supports exempting legislatures from ordinary takings rules,” Justice Amy Coney Barrett writes in the decision. “The Constitution’s text does not limit the Takings Clause to a particular branch of government.” This victory protects all property owners across the country. To get a sense of George’s spirit, check out his Fox News interview from January.