Innovations in State and Local Labor Legislation: Neutrality Laws and Labor Peace Agreements in California

The effective stalemate over national labor law reform that began in the 1970s has prompted employer groups and organized labor to increasingly shift their attentions to legislation at the state and local levels. Unions and their allies have sought to enact, for example, laws that limit the use of public money for pro- and anti-union activities, laws providing card check recognition for certain groups of employees, and responsible contactor legislation. The author examines two of these types of laws: neutrality laws at the state level and labor peace agreements at the local level. In September 2000 California became the first state in the nation to enact a “state neutrality” law with effective enforcement mechanisms. Assembly Bill 1889 prohibits employers from using state money, received in the form of grants, loans, contracts or reimbursements, to promote or deter unionization. The author describes the background to the law, its provisions and impact, and employers’ legal challenge to the law. California has also been at the forefront of promoting labor peace agreements at the city and county levels. The author examines these agreements, which require that employers sign labor peace agreements with unions as a condition of receiving financial assistance from the city or county. The chapter concludes with an examination of how recent state and local legislative developments are likely to influence the campaign for labor law reform at the federal level