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HomePublic Utilities CodeDiv. 10Pt. 4Ch. 4§ 40120 Public Employee Collective Bargaining

§ 40120 Public Employee Collective Bargaining

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

§ 40120 Public Employee Collective Bargaining

Key Takeaways

  • •If most workers in a group want a union, the boss must talk to the union about pay, hours, and work rules.
  • •If the boss and union can't agree, they can ask a group of 5 people (2 from boss, 2 from union, 1 neutral) to decide.
  • •The boss and union pick the neutral person by taking turns crossing names off a list until one name is left.
  • •Both sides pay equally for the arbitration, and the decision is final.

Example

Teachers at a school want better pay. Most of them join a union.

The school must talk to the union about pay. If they can't agree, they can ask an arbitration board to decide. The board's decision is final, and both the school and union pay for it.

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

Official Source
View on CA.gov

§ 40120 Public Employee Collective Bargaining

Whenever a majority of the employees employed by the district in a unit appropriate for collective bargaining indicate a desire to be represented by a labor organization, the district, upon determining as provided in Section 40122 that the labor organization represents the employees in the appropriate unit, shall enter into a written contract with the accredited representative of those employees governing wages, salaries, hours, and working conditions. In case of a dispute over wages, salaries, hours, or working conditions, which is not resolved by negotiations in good faith between the district and the labor organization, upon the request of both, the district and the labor organization may submit the dispute to the decision of the majority of an arbitration board, and the decision of the majority of the arbitration board shall be final. The arbitration board shall be composed of two representatives of the district, and two representatives of the labor organization, and they shall endeavor to agree upon the selection of the fifth member. If they are unable to agree, the names of five persons experienced in labor arbitration shall be obtained from the California State Mediation and Conciliation Service. The labor organization and the district shall, alternately, strike a name from the list so supplied, and the name remaining after the labor organization and the district have stricken four names, shall be designated as the arbitrator. The labor organization and the district shall determine by lot who shall first strike 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 his or her own costs. (Amended by Stats. 2012, Ch. 46, Sec. 124. (SB 1038) Effective June 27, 2012.)

Last verified: January 23, 2026

Key Terms

arbitrationorganizationmajoritycontractemployeewagecalifornia state mediationconciliation service

Related Statutes

  • § 102401 Public Employee Collective Bargaining
  • § 40121 Labor Contract Anti-Discrimination Rules
  • § 40123 Public Utility Employee Protections
  • § 40126 Public Sector Collective Bargaining
  • § 70126 Public Sector Collective Bargaining

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Public Utilities Code. Section 40120.
View Official Source