Search form

CA State Agencies May Not Withhold Funds from Local Jurisdictions Applying Their Own Labor Standards

  • October 3, 2002

A law signed by Governor Davis on August 30, 2002, allows local jurisdictions, such as cities, counties, districts or agencies, to enact and enforce their own ordinances regulating wages, hours, and other conditions of employment as long as they do not conflict with state laws. These local jurisdictions will not be subject to a reduction of state funds or assistance as a result of the local standards. Employers in these jurisdictions will have an additional layer of workplace regulation in the form of higher wages or tighter restrictions on working conditions, resulting in higher labor costs and increased vulnerability to claims by employees.

California Assembly Bill 2509: Local Labor Standards

Purpose: prohibits state agencies from requiring that a local jurisdiction refrain from applying its own labor standards in order to receive state funds or assistance.

Effective Date: January 1, 2003

Consequences: Allows local governments, such as a city, county, district, or agency, receiving state funding to use that money to create and enforce their own local labor standards so long as the local standards do not conflict with and are not preempted by state law.

View full text of AB 2509

Press release issued by the Office of Governor Davis:
GOVERNOR DAVIS SIGNS BILL EMPOWERING LOCAL GOVERNMENTS 9/3/2002

Governor Gray Davis signed legislation that gives local governments the right to enforce local labor standards on all economic development projects within their jurisdiction.

"This bill allows local entities to enforce their own local labor standards," Gov. Davis said. "It eliminates the need for local governments to negotiate with state agencies on the right to enforce such standards on a project-by-project basis."

Existing state law provides a framework for the enforcement of minimum labor standards relating to wages, hours, conditions of employment, occupational safety and health, and special labor relations. Local governments are not precluded from establishing more stringent standards for public and private entities within their respective jurisdictions, unless specific state or federal preemption exists.

AB 2509, by Assembly Member Jackie Goldberg (D - Los Angeles), exempts state agencies that provide funding to projects in local jurisdictions from requirements that those jurisdictions not enforce local labor standards as a condition of receiving state funds.

©2002 Jackson Lewis P.C. This material is provided for informational purposes only. It is not intended to constitute legal advice nor does it create a client-lawyer relationship between Jackson Lewis and any recipient. Recipients should consult with counsel before taking any actions based on the information contained within this material. This material may be considered attorney advertising in some jurisdictions. Prior results do not guarantee a similar outcome.

Reproduction of this material in whole or in part is prohibited without the express prior written consent of Jackson Lewis P.C., a law firm that built its reputation on providing workplace law representation to management. Founded in 1958, the firm has grown to more than 900 attorneys in major cities nationwide serving clients across a wide range of practices and industries including government relations, healthcare and sports law. More information about Jackson Lewis can be found at www.jacksonlewis.com.

See AllRelated Articles You May Like

October 7, 2019

Common Mistakes Companies Make with Gig Economy Workers

October 7, 2019

It is no secret that traditional employers often benefit from non-traditional workplace arrangements available in the gig economy, such as relief from paying unemployment insurance and worker’s compensation plans or being exempt from many minimum wage or overtime laws that apply to the traditional employer-employee relationship.... Read More

October 4, 2019

Top Five Labor Law Developments for September 2019

October 4, 2019

The National Labor Relations Board (NLRB) has adopted a new standard for determining whether contractual language acts as a waiver of a union’s right to bargain over a specific issue. MV Transportation, Inc., 368 NLRB No. 66 (Sept. 10, 2019). The employer notified the union that it planned to revise certain policies and work rules.... Read More

September 27, 2019

Construction Unions Leverage Social Issues to Pressure Owners, General Contractors

September 27, 2019

Construction unions, traditionally male-dominated, are leveraging the growing presence of women in their ranks to apply pressure on owners and contractors to obtain work. This new tactic is another method in unions’ “corporate campaigns” where construction unions create adverse publicity and apply political pressure on owners to hire... Read More

Related Practices