BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 950|
|Office of Senate Floor Analyses | |
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THIRD READING
Bill No: SB 950
Author: Nielsen (R)
Amended: 4/27/16
Vote: 21
SENATE PUBLIC EMP. & RET. COMMITTEE: 5-0, 4/11/16
AYES: Pan, Morrell, Beall, Hall, Moorlach
SENATE JUDICIARY COMMITTEE: 7-0, 4/19/16
AYES: Jackson, Moorlach, Anderson, Hertzberg, Leno, Monning,
Wieckowski
SENATE APPROPRIATIONS COMMITTEE: 7-0, 5/27/16
AYES: Lara, Bates, Beall, Hill, McGuire, Mendoza, Nielsen
SUBJECT: Excluded employees: arbitration
SOURCE: Association of California State Supervisors
California Correctional Supervisors Organization
DIGEST: This bill establishes the Excluded Employee
Arbitration Act which authorizes binding arbitration on behalf
of an excluded state employee for alleged violations of working
conditions, as specified, whose grievance has not been resolved
after the fourth level of review.
ANALYSIS:
Existing law:
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1)Establishes the Ralph C. Dills Act (Dills Act) which sets
forth a framework that governs labor relations between the
State and state employees.
2)Excepts from the Dills Act's definition of state employee:
managerial employees, confidential employees, supervisory
employees, and other employees, as defined.
3)Establishes the Bill of Rights for State Excluded Employees
which defines excluded employees as those employees excepted
from the Dills Act.
4)Provides that the purpose of the Bill of Rights for State
Excluded Employees includes informing excluded employees of
their rights and terms and conditions of employment and also
serves to promote harmonious personnel relations among those
representing state management in the conduct of state affairs.
5)Prohibits excluded employees from holding office in employee
organizations representing rank and file employees or
participating in any employee representational matters on
behalf of non-excluded employees.
6)Provides that excluded employee organizations shall have the
right to represent their excluded members in their employment
relations, including grievances, with the State of California.
7)Authorizes supervisory employees to form, join and participate
in the activities of supervisory organizations of their own
choosing for purposes of representation on all matters of
supervisory employee relations, as provided, or to refrain
from so doing. They also have the right to represent
themselves individually in their employment relations with the
state employer.
8)Authorizes the California Department of Human Resources
(CalHR) to adopt reasonable rules and regulations for the
administration of employer-employee relations.
This bill:
1)Creates the Excluded Employee Arbitration Act which authorizes
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an employee organization that represents an excluded employee
to request binding arbitration when the following conditions
are met:
a) The excluded employee has filed a grievance with CalHR
alleging a violation of Title 2, California Code of
Regulations.
b) The grievance has not been resolved satisfactorily at
the fourth level of review.
c) In cases where there is no fourth level of review, the
employee organization requests arbitration in writing to
CalHR within 21 days of a decision rendered at the third
level of review.
2)Defines arbitration as the binding ruling that resolves an
excluded employee grievance at the fifth level of the excluded
employee grievance process.
3)Requires CalHR and the employee organization, following a
request for arbitration, to designate a standing panel of at
least 20 arbitrators to be made available for resolving
arbitrations authorized by this bill.
4)Provides that if fewer than three arbitrators are 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.
5)Sets forth a process whereby the employee organization and the
employer may consecutively strike any arbitrator from the
arbitration 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 CalHR.
6)Provides that 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.
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7)Requires the arbitrator to 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.
8)Mandates that the arbitrator issue a written decision within
45 days of the conclusion of the hearing.
9)Orders that the non-prevailing party, i.e. CalHR or the
employee organization, pay the cost of the arbitration.
Provides that the arbitrator shall not order the excluded
employee to pay the cost of arbitration and provides that the
cost of arbitration shall not be passed on to the excluded
employee.
Background
Current law authorizes CalHR to adopt reasonable rules and
regulations for the administration of employer-employee
relations. CalHR has adopted regulations that set out a
Grievance and Appeal Procedure for excluded employees.
Under Title 2, Section 599.859 of the California Code of
Regulations, supervisory employee organizations or individual
supervisors may pursue resolution of disagreements over issues
with their employer that fall within the jurisdiction of CalHR
through a grievance procedure that typically includes an
informal review and four formal levels of review by the employer
according to the following timeline:
Informal Level: Within five work days of the incident, an
informal discussion between the excluded employee and the
employee's supervisor or manager.
Level 1: If unsatisfied with the informal review, the
employee may file a formal grievance within 10 work days of
the incident and the employer's designee for the first level
of review must respond within 10 working days.
Level 2: The employee may appeal the employer's Level 1
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decision within 10 work days of receipt of the employer's
response and the employer's designee for the second level of
review must respond within 15 work days.
Level 3: The employee may appeal the employer's Level 2
decision within 10 work days of receipt of the employer's
response and the employer's designee for the third level of
review must respond within 15 work days.
Level 4: The employee may appeal the employer's Level 3
decision to CalHR within 10 work days of receipt of the
employer's response and CalHR's designee for the fourth level
of review must respond within 20 work days.
Upon denial at the fourth level of review, the employee or the
employee organization representing the employee may pursue a
claim with the State Personnel Board, the Department of Fair
Employment and Housing, or the State Superior Court depending on
the issue in dispute.
Related/Prior Legislation
AB 2802 (Strom-Martin, 2002) would have established arbitration
procedures for supervisory employees of the Department of
Corrections and the Department of the Youth Authority. The bill
was held under submission in the Assembly Appropriations
Committee.
AB 1258 (Matthews, 2003), an identical bill to AB 2802, died at
the Assembly Desk without committee referral.
AB 1584 (Evans, 2006), held on suspense in the Senate
Appropriations Committee, would have permitted an excluded
employee to request mediation after the fourth level of review.
AB 526 (Evans, 2007), held on suspense in the Senate
Appropriations Committee, was identical to AB 1584.
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FISCAL EFFECT: Appropriation: No Fiscal
Com.:YesLocal: No
According to Senate Appropriations Committee, CalHR indicates
that it would incur increased staffing costs representing itself
and other departments in arbitration as a result of the bill.
The number of additional grievances/arbitrations that would
result is unknown; however, CalHR estimates a cost of $40,000
per arbitration (General Fund). However, the bill's costs would
be partially offset to the extent that CalHR were to win
arbitration proceedings.
SUPPORT: (Verified5/27/16)
Association of California State Supervisors (co-source)
California Correctional Supervisors Organization (co-source)
Association for Los Angeles Deputy Sheriffs
California Association of Code Enforcement Officers
California College and University Police Chiefs Association
California Narcotic Officers' Association
Civil Justice Association of California
Los Angeles County Professional Peace Officers Association
Los Angeles Police Protective League
Professional Engineers in California Government
Riverside Sheriffs' Association
OPPOSITION: (Verified5/27/16)
None received
ARGUMENTS IN SUPPORT: According to the sponsor, "the excluded
employee grievance system is virtually illusory for excluded
employees."
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"Of all the grievances filed, 99% are denied because there is no
consequence for the state agency to not follow the rules, and
there is no objective oversight." Thus, employee organizations
respond by filing lawsuits in court to combat the most egregious
cases that they believe should be granted in the grievance
process.
"The inability to have arbitration has cost the state
unnecessary litigation costs. This bill will bring a more
meaningful effort to resolve issues and problems at a much lower
level and save the taxpayer money."
Prepared by:Glenn Miles / P.E. & R. / (916) 651-1519
5/28/16 16:45:55
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