Governor Gavin Newsom signed AB 1034, our sponsored legislation extending the authority to waive the application of the Private Attorneys General Act (PAGA) within Collective Bargaining Agreements (CBAs) in the construction industry. PAGA exemptions allow language in a CBA that limits an employer’s exposure to lawsuits.

Current state law provides an exception to PAGA for construction industry employers and employees who enter into a CBA that provides premium wage rates, a grievance and binding arbitration procedure to redress wage and hour issues and expressly waives the requirements of PAGA in clear and unambiguous terms.

It was set to expire but AB 1034 deletes the January 1, 2025 date and extends this important industry exemption until January 1, 2038.

Thank you to our contractor members who used the grassroots advocacy website to send emails to Governor Newsom.

Thanks also go to Assemblymember Grayson, Senator Cortese, and their staff for their hard work in getting AB 1034 amended and passed into law. Without their efforts, we would not have obtained a legislative vehicle and passed it through all required policy, fiscal and floor votes over a 10-day period during the final days of the legislative session.