On September 28, 2023, a substantial piece of legislation was agreed upon amidst the governing bodies and labor unions of California. Governor Newsom made the decision to sign Assembly Bill (AB) 1228, thus cementing the agreement that had been struck between business and labor towards the beginning of September regarding the FAST Recovery Act.
This agreement was announced earlier on September 11, 2023, by a coalition of California-based businesses. Their announcement stated their agreement with labor unions to withdraw their referendum challenging Assembly Bill (AB) 257, the bill that initially created the FAST Recovery Act, from next year’s ballot. This move shows the growing collaboration between businesses and labor unions in actively defining and crafting the laws that govern their affairs, setting a precedent for potential future collaborations.
The details of Assembly Bill (AB) 1228 aren’t clarified in this announcement, thus leaving room for speculation among industry insiders. However, the shared announcement by the diverse group of businesses suggests a positive outcome for both labor and corporate interests, at least according to the parties involved.
Moreover, the fact that the legislation was signed by Governor Newsom highlights its importance to the state’s governance. The Governor’s decision lends credence to the notion that the state is willing to back significant agreements made between labor and businesses.
Although initial reactions from various law firms have been mostly positive, it remains to be seen how the legislation will impact businesses and employees in the longer term. Given the complexity of most labor laws, follow-up actions from both sides and continued cooperative decision-making will be paramount for the successful execution of the FAST Recovery Act.
For full details of the agreement and additional analysis, click here.