On October 13, 2025, Governor Gavin Newsom signed Assembly Bill 339 (“AB 339”) into law, adding Section 3504.1 to the California Government Code. This legislation expands upon existing provisions of the Meyers-Milias-Brown Act (“MMBA”), which governs labor-management relations for local public agencies. Under current law, public agencies are required to meet and confer in good faith with recognized employee organizations regarding wages, hours, and other terms and conditions of employment. Public employers must also generally provide written notice of any proposed action involving a matter within the scope of representation.
Background
PERB and the courts have supplied a balancing test for managerial decisions, which may nonetheless be subject to the duty to meet and confer.[i] Both tribunals have applied this balancing test to find that decisions to contract or subcontract work performed by represented employees remain negotiable under many circumstances.[ii] Specifically, if a public employer is motivated by cost savings to contract and/or subcontract out services previously performed by represented employees, the decision is subject to bargaining.[iii] However, even if this decision is negotiable, the MMBA did not previously govern the process by which a public agency solicited costing or proposal information from potential vendors. In fact, many agencies include provisions in their memoranda of understanding regarding the process a public agency must follow to...
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