Legislative Update - Governor Newsom Signs AB 1034!

Protecting Union Contractors from PAGA Abuse

Over the weekend, Governor Newsom signed AB 1034 into law. Co-sponsored by UCON, AB 1034 provides vital protections for our union contractors by allowing them to secure an exemption from PAGA lawsuits through their CBAs. AB 1034 was UCON’s top priority bill and will save our contractors millions of dollars in frivolous lawsuits, while strengthening the business environment for union contractors.

Thank you to every member who took action, and to our union partners for their joint advocacy on this important issue.

BACKGROUND:

AB 1034 (Asm. Grayson & Sen Cortese), co-sponsored by UCON, extends the original law passed in 2016 that allows union-signatory contractors to bargain for a PAGA exemption through CBAs. Without the passage of AB 1034, the exemption will expire. 

This safe harbor law has been a critical support for union-signatory contractors. It strengthens the business environment for UCON contractors and our labor partners and upholds the sanctity of Collective Bargaining Agreements. The Carpenters, Laborers, and Operating Engineers have joined UCON in support.  

Recent PAGA reforms signed by Governor Newsom will greatly reduce PAGA abuses; nonetheless, without the protections secured by AB 1034, union-signatory contractors will be exposed to rampant PAGA abuses despite agreements reached in good faith through Collective Bargaining Agreements.  

Contact Emily Cohen, UCON EVP, for information.

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