Amended in Senate March 31, 2016

Senate Bill No. 950

Introduced by Senator Nielsen

February 4, 2016

An act to add Chapter 10.6 (commencing with Section 3539.75) to Division 4 of Title 1 of the Government Code, relating to state employees.

LEGISLATIVE COUNSEL’S DIGEST

SB 950, as amended, Nielsen. Excluded employees: arbitration.

The Bill of Rights for State Excluded Employees permits, among other things, excluded employee organizations to represent their excluded members in their employment relations, including grievances, with the state. That law defines excluded employees as all managerial employees, confidential employees, supervisory employees, and specified employees of the Department of Personnel Administration, the Department of Finance, the Controller’s office, the Legislative Counsel Bureau, the Bureau of State Audits, the Public Employment Relations Board, the Department of Industrial Relations, and the State Athletic Commission.

This bill would enact the Excluded Employee Arbitration Act to permit begin delete an excluded employee who has filed a grievance with the California Human Resources Administration (CALHR), or end delete an employee organization that represents begin delete that employee, end delete begin insert an excluded employee who has filed certain grievances with the end insert begin insert Department of Human Resources (CalHR) end insert to request arbitration of the grievance if specified conditions are met. The bill would require the designation of a standing panel of arbitrators, and, under specified circumstances, the provision of arbitrators from the California State Mediation and Conciliation Service within the Department of Industrial Relations. The bill would then require the arbitrator to be chosen in a specified manner, and would prescribe the duties of that arbitrator. The bill would also require the losing party to bear the costs of arbitration, and would make a statement of legislative intent with regard to the above.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

It is the intent of the Legislature that state
excluded employees shall have the right to arbitration as a fifth
step to the excluded employee grievance procedure. The present
grievance procedure leaves too many grievances unresolved. This
lack of resolution has caused more cases to be filed in California’s
courts, which should have been resolved at a lower level.

SEC. 2.  

Chapter 10.6 (commencing with Section 3539.75) is
added to Division 4 of Title 1 of the Government Code, to read:

 

Chapter  10.6. Excluded Employee begin delete Mediation end delete begin insert Arbitration end insert
Act

 

3539.75.  

This chapter shall be known, and may be cited, as the
Excluded Employee Arbitration Act.

3539.76.  

For purposes of this chapter:

(a) “Department” means the begin delete California end delete begin insert Department of end insert Human
Resources begin delete Administration (CALHR). end delete begin insert (CalHR). end insert

(b)  begin delete “Employee” end delete begin insert “ end insert begin insert Excluded employee” end insert means an excluded
employee of the state, as defined in subdivision (b) of Section
3527.

(c) “Employee organization” means any organization that
represents excluded employees of the begin delete state. end delete begin insert State of California. end insert

(d) “Employer” means the State of California.

(e) “Arbitration” means the binding ruling that resolves an
excluded employee grievance at the fifth level of the excluded
employee grievance process.

3539.77.  

An begin delete employee who has filed a grievance with the
department or an end delete employee organization representing begin delete that employee end delete
begin insert an employee who has filed a grievance with the department end insert may
request arbitration of the grievance if all of the following conditions
are met:

(a) The grievance alleges a violation of Title 2 begin delete or 15 end delete of the
California Code of begin delete Regulations, this code, the Labor Code, or a
federal statute relating to employer-employee relations. end delete

begin insert Regulations. end insert

(b) The grievance has not been resolved to the begin delete employee’s or end delete
employee organization’s satisfaction after begin delete the third or fourth level
of review end delete begin insert either of the following, as applicable, end insert pursuant to
regulations of the department governing grievances for excluded

begin delete employees. end delete begin insert employees: end insert

begin insert

(1) The fourth level of review.

end insert begin insert

(2) In cases where there is no fourth level of review, the third
level of review.

end insert

(c) The begin delete employee or end delete employee organization requests arbitration
in writing, submitted to the department, within 21 days of a
decision rendered in begin delete the third or fourth level of review. end delete begin insert either of
the following, as applicable: end insert

begin insert (1) end insert begin insert   end insert begin insert The fourth level of review. end insert

begin insert

(2) In cases where there is no fourth level of review, the third
level of review.

end insert

3539.78.  

(a) After a request for arbitration is made, the
department and the employee organization shall designate a
standing panel of at least 20 arbitrators who shall be available for
arbitration under this chapter.

(b) If there are fewer than three arbitrators available, then the
employee organization or the employer may obtain the names of
an additional five arbitrators from the California State Mediation
and Conciliation Service within the Department of Industrial
Relations.

(c) From that standing panel, the employee organization and
the employer may consecutively strike any arbitrator from that
panel until the name of one arbitrator is agreed upon, or, if no
agreement is made, the last remaining person on the panel shall
be designated the arbitrator. The name of that arbitrator shall be
submitted in writing to the department.

(d) If the employee organization does not submit its choice of
an arbitrator within 45 days after requesting arbitration, the request
for arbitration shall be considered withdrawn.

3539.79.  

(a) The arbitrator shall issue a decision for each
grievance heard during the arbitration. The decision shall be based
solely on the written record in the grievance, the grievance
response, and the oral presentations made at the arbitration. The
arbitrator’s decision shall be legally binding.

(b) The arbitrator shall issue a written decision within 45 days
of the conclusion of the hearing.

(c) The arbitrator shall order the nonprevailing party to pay the
cost of the arbitration.