Bulletin No. 20-04
April 28, 2004

Emergency regulations extending carve-out program to all industries are now in effect

Emergency regulations implementing a provision in Senate Bill 228 that extends the "carve-out" program to all industries are now in effect. Previously only employers and unions in the construction industry could establish these alternative dispute resolution programs in their collective bargaining agreements.

SB 228, signed into law last year, amends Labor Code Section 3201.7 to extend carve-out programs to any unionized employer and their union, in any industry, other than construction, meeting specified financial eligibility requirements. To start the process, the union must file a petition to negotiate a Section 3201.7 Labor-Management Agreement.

The emergency regulations are contained in Sections 10200 through 10204 of Title 8, California Code of Regulations. The rules specify the qualifications, procedures and forms required to establish a program. The "Notice of Emergency Regulatory Adoption" and the new rules, as adopted, as attached to this newsline.