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HomePublic Utilities CodeDiv. 11Ch. 5Art. 1§ 120502 Labor Dispute Arbitration Panel

§ 120502 Labor Dispute Arbitration Panel

Public Utilities Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 120502 Labor Dispute Arbitration Panel

Key Takeaways

  • •If workers and bosses can't agree on pay, hours, or work conditions, they can ask for help from a special group called an arbitration panel.
  • •The panel has three people: one from the workers' side, one from the bosses' side, and a third person they both agree on. If they can't agree, they pick from a list of five experts by taking turns to remove names until one is left.
  • •The panel's decision is final, and both sides must follow it. They also split the cost of the arbitration equally.
  • •Each side pays for their own extra costs, like their own lawyers or preparation.

Example

Imagine the teachers at a school want higher pay, but the school board says they can't afford it. They talk and talk but can't agree.

Both the teachers and the school board can ask for an arbitration panel to decide. They each pick one person for the panel, and then they pick a third person together. If they can't agree on the third person, they get a list of five experts and take turns crossing out names until one is left. That person joins the panel. The panel listens to both sides and makes a final decision on the pay. Both the teachers and the school board have to follow this decision and share the cost of the arbitration.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 120502 Labor Dispute Arbitration Panel

In case of a labor dispute over wages, salaries, hours, working conditions, and benefits on the making or maintaining of collective-bargaining agreements and the terms to be included in such agreements, which is not resolved by negotiations in good faith between the board and the labor organization, upon the joint request of both, the board and the labor organization may submit the dispute to the decision of the majority of an arbitration panel. The arbitration panel shall be composed of one representative of the board, and one representative of the labor organization, and they shall endeavor to agree upon the selection of the third member. If they are unable to agree, the names of five persons experienced in labor arbitration shall be obtained from the State Conciliation Service. The labor organization and the board shall, alternately, strike a name from the list so supplied, and the name remaining, after the labor organization and the board have stricken four names, shall be designated as the third arbitrator. The labor organization and the board shall determine by lot who shall first strike a name from the list. The decision of a majority of the arbitration board shall be final and binding upon the parties thereto. The expenses of arbitration shall be borne equally by the parties. Each party shall bear its own costs. (Added by Stats. 1978, Ch. 577.)

Last verified: January 23, 2026

Key Terms

labor disputecollective-bargaining agreementsarbitration panelState Conciliation Service

Related Statutes

  • § 120503 Labor Dispute Factfinding Process
  • § 105142 Public Employee Arbitration Process
  • § 120505 Union Representation Determination
  • § 1001 Utility Construction Approval
  • § 1001.1 Transmission Project Need Presumption

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Public Utilities Code. Section 120502.
View Official Source