Bill Text: CA AB187 | 2025-2026 | Regular Session | Chaptered
Bill Title: Employment.
Sponsorship: Committee Bill
Status: (Passed) 2026-09-18 - Chaptered by Secretary of State - Chapter 256, Statutes of 2026. [AB187 Detail]
Download: California-2025-AB187-Chaptered.html
Assembly Bill
No. 187
CHAPTER 256
An act to amend Sections 19816.18, 20305, and 22953 of, to amend and repeal Section 3556 of, and to add Section 20899.7 to, the Government Code, and to add Section 2695.4 to the Labor Code, relating to employment, and making an appropriation therefor, to take effect immediately, bill related to the budget.
[
Approved by
Governor
September 18, 2026.
Filed with
Secretary of State
September 18, 2026.
]
LEGISLATIVE COUNSEL'S DIGEST
AB 187, Committee on Budget.
Employment.
(1) Existing law generally grants public employees the right to join employee organizations and to be represented by those organizations in their employment relations. Existing law requires specified public employers to provide exclusive employee representatives access to new employee orientations, as prescribed.
Existing law entitles an exclusive representative, if the public employer has not conducted an in-person new employee orientation within 30 days of a newly hired employee’s start date, and the new employee is working in person, to schedule an in-person meeting at the worksite during employment hours, as prescribed, during which newly hired employees are required to have the opportunity to attend and be relieved of other duties for
the purpose of attending the meeting. These in-person meeting requirements are repealed as of June 30, 2027.
Under this bill, such an in-person meeting would satisfy the requirements of existing law for the purpose of providing mandatory access to the employees’ new employee orientation and onboarding process. The bill would also remove the repeal for the in-person meeting requirements, thereby making those requirements operative indefinitely. By extending the operation of duties for various local agencies, this bill would impose a state-mandated local program.
(2) Existing law authorizes the Department of Human Resources to self-fund or self-insure a benefit program under its administration when it is cost effective to do so. Existing law authorizes the department to administer the self-funded or self-insured benefit program directly or to contract with a third-party administrator. Existing law
creates the State Employees’ Self-Funded Benefit Fund, which is a continuously appropriated fund, created in the State Treasury, for use by the department to make benefit payments and pay related administrative costs.
This bill would authorize any contract entered into pursuant to these provisions to provide for a claims fund reserve account to be maintained with respect to the benefit program for the purpose of administering benefit programs, including deducting contracted benefit program expenses. The bill authorizes the account to be used for, among other things, defraying increases in future premiums. The bill would authorize an account that is established for these purposes to be created outside of the centralized State Treasury System utilizing the taxpayer identification number of a contracted carrier, subject to meeting specified criteria, including that deposited funds are segregated and clearly identifiable. By authorizing new uses of a continuously
appropriated fund, this bill would make an appropriation.
(3) Existing law authorizes the state, through the Department of Human Resources, the Trustees of the California State University, or the Regents of the University of California, to contract with carriers for dental care plans for employees, annuitants, and eligible family members. Existing law prohibits a dental care plan contract from being entered into unless funds are appropriated by the Legislature for this purpose. Existing law provides that if a dental care plan is self-funded, funds used for that plan will be considered continuously appropriated.
This bill would authorize any contract entered into pursuant to these provisions to provide for a claims fund reserve account to be maintained with respect to the benefit program for purposes of administering benefit programs, including deducting contracted benefit program expenses. The bill
would authorize an account that is established for these purposes to be created outside of the centralized State Treasury System utilizing the taxpayer identification number of a contracted carrier, subject to meeting specified criteria, including that deposited funds are segregated and clearly identifiable.
(4) The Public Employees’ Retirement Law (PERL) creates the Public Employees’ Retirement System (PERS) to provide a defined benefit to its members based on age at retirement, service credit, and compensation, as specified. PERL excludes from membership an employee whose appointment or employment contract does not fix a term of full-time, continuous employment in excess of 6 months, unless that person comes within specific exceptions. Among those exceptions, PERL includes an exception for a person who is a member of certain enumerated state boards and elects to become a member.
This bill would
expand this exception to additionally include the board members of the Alcoholic Beverage Control Appeals Board and the Central Valley Flood Protection Board, as specified, thereby allowing their membership in PERS if they elect to do so. The bill would also specify how these board members would have their service credit in PERS calculated, including for service prior to January 1, 2027.
This bill would make nonsubstantive changes to existing law.
(5) Existing law establishes labor provisions specifically applicable to sheepherders, including authorizing an employer of a sheepherder to pay a specified monthly minimum wage as an alternative to paying the minimum wage for all hours worked to sheepherders employed on a regularly scheduled 24-hour shift on a 7-days-per-week “on-call” basis. Existing law provides that an employer, or any other person acting on behalf of the employer, who violates or causes
to be violated those provisions is subject to a civil penalty of $100 for each underpaid employee for each pay period during which the employee was underpaid, plus an amount sufficient to recover the unpaid wages for an initial violation and $250 for any subsequent violation.
This bill would, until January 1, 2029, establish similar labor protections for goat herders, as defined, relating to wages, meal and rest periods, lodging, and other conditions of employment and require every employer of goat herders, except as specified, to post a copy of these provisions, and the provisions applicable to sheepherders, in an area frequented by goat herders where it may be easily read during the workday in a language understood by the goat herder.
(6) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory
provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
(7) This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.
Digest Key
Vote: MAJORITY Appropriation: YES Fiscal Committee: YES Local Program: YESBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 3556 of the Government Code, as amended by Section 4 of Chapter 52 of the Statutes of 2024, is amended to read:3556.
(a) Each public employer described in subdivision (a) of Section 3555.5 shall provide the exclusive representative mandatory access to its new employee orientations. The exclusive representative shall receive not less than 10 days’ notice in advance of an orientation, except that a shorter notice may be provided in a specific instance where there is an urgent need critical to the employer’s operations that was not reasonably foreseeable. The structure, time, and manner of exclusive representative access shall be determined through mutual agreement between the employer and the exclusive representative, subject to the requirements of Section 3557, and the agreement may expressly waive or modify requirements set forth in this section. The date, time, and place of the orientation shall not be disclosed to anyone other than the employees, the exclusive representative, or a vendor that is contracted to provide a service for purposes of the orientation.(b) If the public employer has not conducted an in-person new employee orientation within 30 days of a newly hired employee’s start date, and the new employee is working in person, the exclusive representative shall be entitled to schedule an in-person meeting at the worksite during employment hours, during which newly hired employees shall have the opportunity to attend and shall be relieved of other duties for the purpose of attending the meeting. This meeting shall satisfy the requirements of subdivision (a) for the purpose of providing mandatory access to the employees’ new employee orientation and onboarding process. During this meeting, the exclusive representative shall be permitted to communicate directly with newly hired employees in the applicable bargaining unit for up to 30 minutes on paid time. Employers shall provide appropriate on-site meeting space within seven calendar days of receiving a request from the exclusive representative. This section does not
prohibit an employer from agreeing with an exclusive representative to provide more than 30 minutes of paid time for communicating with newly hired employees pursuant to this section.
(c) If the state or a local public health agency issues an order limiting the size of gatherings, the exclusive representative may schedule multiple meetings to ensure that newly hired employees have the opportunity to attend without exceeding the maximum allowable number of people. If such an order prohibits all gatherings, the exclusive representative may schedule a meeting or meetings once the order is lifted or modified to permit gatherings. Alternative access pursuant to these provisions shall be determined through mutual agreement between the employer and the exclusive representative.
SEC. 2.
Section 3556 of the Government Code, as amended by Section 5 of Chapter 52 of the Statutes of 2024, is repealed.SEC. 3.
Section 19816.18 of the Government Code is amended to read:19816.18.
(a) The department may either self-fund or self-insure any benefit program under its administration when it is cost effective to do so. The department may administer the self-funded or self-insured benefit program directly or may contract with a third-party administrator. The Treasurer, Controller, and the Department of Finance shall assist the department to ensure that the appropriate fiscal and administrative procedures are established. These procedures shall include, but not be limited to, processes, fund accounts, and transfers from each department’s operating budget, including a pro rata share of the cost of administration. Notwithstanding any other law, the Public Employees’ Retirement System shall assist the department upon request by providing retiree names and addresses to the department solely for the purpose of notifying retirees of eligibility for enrollment into a dental plan, vision plan, group legal insurance plan, or life insurance plan offered by the department. Any information provided to the department shall be treated as confidential by the department.(b) Funds appropriated for self-funded or self-insured benefit programs established pursuant to this section shall be maintained in the State Employees’ Self-Funded Benefit Fund, which is hereby created in the State Treasury. Moneys in this fund shall be used by the department to make benefit payments and pay related administrative costs. Income of whatever nature earned on the moneys in the State Employees’ Self-Funded Benefit Fund during any fiscal year shall be credited to the fund. The Controller and the Department of Finance may establish individual accounts within the fund, as deemed appropriate, for individual self-funded or self-insured benefit programs. Notwithstanding Section 13340, moneys in this fund and accounts within the fund that are used to pay benefits for a self-funded or self-insured program established pursuant to this section are continuously appropriated, without regard to fiscal years.
(c) Any contract entered into pursuant to this section may provide for a claims fund reserve account to be maintained with respect to the benefit program for the purpose of administering benefit programs, including, but not limited to, deducting contracted benefit program expenses. The account may also be used to defray increases in future premiums, reduce contributions of employees, annuitants, and employers, to implement cost containment programs, or to increase benefits provided by a benefit plan.
(d) An account established pursuant to subdivision (c) may be created outside of the centralized State Treasury System utilizing the taxpayer identification number of a contracted carrier, subject to the following provisions:
(1) Funds deposited under the carrier’s tax identification number and any interest earned from
those funds remain the property of the state, subject to all applicable laws, policies, and fiscal controls.
(2) Any funds remaining in the account after the term of the contract are returned to the state.
(3) Any funds shall be used solely for the purpose of benefit programs.
(4) Deposited funds are segregated and clearly identifiable.
(5) The carrier shall, upon request from the department, provide to the department account information, including the account number, account opening date, account closing date, account balance, and account transactions.
(6) The funds shall be insured by the carrier under any law of the United States or the carrier shall provide security for the funds in
any of the forms specified in Section 16522 or 16612.
SEC. 4.
Section 20305 of the Government Code is amended to read:20305.
(a) An employee whose appointment or employment contract does not fix a term of full-time, continuous employment in excess of six months is excluded from this system unless:(1) They are a member at the time they render that service and are not otherwise excluded pursuant to this article or by a provision of a contract.
(2) Their position requires regular, part-time service for one year or longer for at least an average of 20 hours per week, or requires service that is equivalent to at least an average of 20 hours per week for one year or longer, unless they elect membership pursuant to Section 20325.
(3) Their employment is, in the opinion of the board, on a seasonal, limited-term, on-call, emergency, intermittent, substitute, or other irregular basis, and is compensated and meets one of the following conditions:
(A) The appointment or employment contract does not fix a term of full-time, continuous employment in excess of six months, but full-time employment continues for longer than six months, in which case membership shall be effective not later
than the first day of the first pay period of the seventh month of employment.
(B) The person completes 125 days, if employed on a per diem basis or, if employed on other than a per diem basis, completes 1,000 hours within the fiscal year, in which case, membership shall be effective not later than the first day of the first pay period of the month following the month in which 125 days or 1,000 hours of service were completed. For purposes of this subdivision, “day” means each eight-hour period of employment worked by an employee paid on a per diem basis so that membership is effective after they have completed 1,000 hours of compensated service in a fiscal year.
(C) The person is employed by the Department of Forestry and Fire Protection in one of the positions that provide state safety membership pursuant to Section 20400 or state peace officer/firefighter membership pursuant to Section 20392.
(4) They are a temporary faculty member of the California State University and meets one of the following conditions:
(A) They
work two consecutive semesters or three consecutive quarters at half-time or more, and are not otherwise excluded pursuant to this article, in which case, membership shall be effective with the start of the next consecutive semester or quarter if the appointment requires service of half-time or more.
(B) They work two consecutive semesters or three consecutive quarters at a minimum teaching load of six weighted units, and are not otherwise excluded pursuant to this article, in which case membership shall be effective at the start of the next consecutive semester or quarter, but not earlier than July 1, 2004, if the appointment requires service of six weighted units or more. This subparagraph does not apply to faculty members unless provided for in a memorandum of understanding agreed upon, on or after January 1, 2003, pursuant to Chapter 12 (commencing with Section 3560) of Division 4 of Title 1, or authorized by the Trustees of the California State University for employees excluded from collective bargaining.
(5) They are
a member of the Alcoholic Beverage Control Appeals Board, the Central Valley Flood Protection Board, the Board of Prison Terms, the State Personnel Board, or the State Air Resources Board and elect to become a member pursuant to Section 20320.
(6) They are participating in partial service retirement, pursuant to Article 1.7 (commencing with Section 19996.30) of Chapter 7 of Part 2.6.
(7) They are included by specific provision of the board relating to the exclusion of less than full-time
employees.
(b) This section shall supersede any contract provision excluding persons in any temporary or seasonal employment basis and shall apply only to persons entering employment on and after January 1, 1975. Except as provided in Section 20502, no contract or contract amendment entered into after January 1, 1981, shall contain any provision excluding persons on an irregular employment basis.
SEC. 5.
Section 20899.7 is added to the Government Code, to read:20899.7.
For service prior to January 1, 2027, such service having already been reported to the system, in computing the amount of service to be credited to a member of the Alcoholic Beverage Control Appeals Board or the Central Valley Flood Protection Board, who elected to become a member pursuant to Section 20320 before January 1, 2027, a year of service shall be credited for each year of tenure on the board. A person serving on the board shall be deemed to be serving on a full-time basis rather than a part-time basis for all purposes of this part.SEC. 6.
Section 22953 of the Government Code is amended to read:22953.
(a) The state, through the Department of Human Resources, the Trustees of the California State University, or the Regents of the University of California may contract, upon negotiations with employee organizations, with carriers for dental care plans for employees, annuitants, and eligible family members, provided the carriers have operated successfully in the area of dental care benefits for a reasonable period or have a contract to provide a health benefit plan pursuant to Section 22850. The dental care plans may include a portion of the monthly premium to be paid by the employee or annuitant. Dental care plans provided under this authority may be self-funded by the employer if it is determined to be cost effective.(b) An employee or annuitant may enroll in a
dental care plan provided by a carrier that also provides a health benefit plan pursuant to Section 22850 if the employee or annuitant is also enrolled in the health benefit plan provided by that carrier. However, nothing in this section may be construed to require an employee or annuitant to enroll in a dental care plan and a health benefit plan provided by the same carrier.
(c) No contract for a dental care plan may be entered into unless funds are appropriated by the Legislature in a subsequently enacted statute. If a dental care plan is self-funded, funds used for that plan shall be considered continuously appropriated, notwithstanding Section 13340.
(d) Any contract entered into pursuant to this section may provide for a claims fund reserve account to be maintained with respect to the benefit
program for the purpose of administering benefit programs, including, but not limited to, deducting contracted benefit program expenses. The account may also be used to defray increases in future premiums, reduce contributions of employees, annuitants, and employers, to implement cost containment programs, or to increase benefits provided by a benefit plan.
(e) An account established pursuant to subdivision (d) may be created outside of the centralized State Treasury System utilizing the taxpayer identification number of a contracted carrier, subject to the following provisions:
(1) Funds deposited under the carrier’s tax identification number and any interest earned from those funds remain the property of the state, subject to all applicable laws, policies, and fiscal controls.
(2) Any funds remaining in the account
after the term of the contract are returned to the state.
(3) Any funds shall be used solely for the purpose of benefit programs.
(4) Deposited funds are segregated and clearly identifiable
(5) The carrier shall, upon request from the department, provide to the department account information, including the account number, account opening date, account closing date, account balance, and account transactions.
(6) The funds shall be insured by the carrier under any law of the United States or the carrier shall provide security for the funds in any of the forms specified in Section 16522 or 16612.
SEC. 7.
Section 2695.4 is added to the Labor Code, to read:2695.4.
(a) It is the intent of the Legislature to codify certain labor protections that should be afforded to goat herders. The provisions of this section are in addition to, and are entirely independent from, any other statutory or legal protections, rights, or remedies that are or may be available under this code or any other state law or regulation to goat herders either as individuals, employees, or persons.(b) (1) For a goat herder employed on a regularly scheduled 24-hour shift on a seven-days-per-week “on-call” basis, an employer may, as an alternative to paying the minimum wage for all hours worked, instead pay no less than the monthly minimum wage specified in Section 4(E) of Wage Order No. 14-2001 of the Industrial
Welfare Commission. Any goat herder who performs non-goat-herding work on any workday shall be fully covered for that workweek by the provisions of any applicable laws or regulations relating to that work.
(2) The amount of the monthly minimum wage permitted under paragraph (1) shall be increased each time that the state minimum wage is increased and shall become effective on the same date as any increase in the state minimum wage. The amount of the increase shall be determined by calculating the percentage increase of the new rate over the previous rate, and then by applying the same percentage increase to the minimum monthly wage rate.
(3) An employer shall not credit meals or lodging against the minimum wage owed to goat herders under this subdivision. Every employer shall provide to each goat herder not less than the minimum monthly meal and lodging benefits required to be
provided by employers of goat herders under the provisions of the H-2A visa program of the federal Immigration and Nationality Act (8 U.S.C. Sec. 1101) or any successor provisions.
(c) (1) When tools or equipment are required by the employer or are necessary to the performance of a job, the tools and equipment shall be provided and maintained by the employer, except that a goat herder whose wages are at least two times the minimum wage provided herein, or if paid on a monthly basis, at least two times the monthly minimum wage, may be required to provide and maintain hand tools and equipment customarily required by the trade or craft.
(2) A reasonable deposit may be required as security for the return of the items furnished by the employer under provisions of paragraph (1) upon issuance of a receipt to the goat herder for the deposit. The deposits shall be
made pursuant to Article 2 (commencing with Section 400) of Chapter 3 of Part 1. Alternatively, with the prior written authorization of the goat herder, an employer may deduct from the goat herder’s last check the cost of any item furnished pursuant to paragraph (1) when the item is not returned. No deduction shall be made at any time for normal wear and tear. All items furnished by the employer shall be returned by the goat herder upon completion of the job.
(d) No employer of goat herders shall employ a goat herder for a work period of more than five hours without a meal period of no less than 30 minutes, except that when a work period of not more than six hours will complete a day’s work, the meal period may be waived by the mutual consent of the employer and the goat herder. An employer may be relieved of this obligation if a meal period of 30 minutes cannot reasonably be provided because no one is available to relieve a goat herder tending
flock alone on that day. Where a meal period of 30 minutes can be provided but not without interruption, a goat herder shall be allowed to complete the meal period during that day.
(e) To the extent practicable, every employer shall authorize and permit all goat herders to take rest periods. The rest period, insofar as is practicable, shall be in the middle of each work period. The authorized rest times shall be based on the total hours worked daily at the rate of 10 minutes net rest time per four hours, or major fraction thereof, of work. However, a rest period need not be authorized for goat herders whose total daily worktime is less than three and one-half hours.
(f) When the nature of the work reasonably permits the use of seats, suitable seats shall be provided for goat herders working on or at a machine.
(g) During times when a goat herder is lodged in mobile housing units where it is feasible to provide lodging that meets the minimum standards established by this section because there is practicable access for mobile housing units, the lodging provided shall include, at a minimum, all of the following:
(1) Toilets and bathing facilities, which may include portable toilets and portable shower facilities.
(2) Heating.
(3) Inside lighting.
(4) Potable hot and cold water.
(5) Adequate cooking facilities and utensils.
(6) A working refrigerator, which may include a butane or propane gas refrigerator, or for no more
than a one-week period during which a nonworking refrigerator is repaired or replaced, a means of refrigerating perishable food items, which may include ice chests, provided that ice is delivered to the goat herder, as needed, to maintain a continuous temperature required to retard spoilage and ensure food safety.
(h) All goat herders shall be provided with all of the following at each worksite:
(1) Regular mail service.
(2) (A) A means of communication through telephone or radio solely for use in a medical emergency affecting the goat herder or for an emergency relating to the herding operation. If the means of communication is provided by telephone, the goat herder may be charged for the actual cost of nonemergency telephone use, except where prohibited by Section 2802.
(B) This paragraph does not preclude an employer from providing additional means of communication to the goat herder which are appropriate because telephones or radios are out of range or otherwise inoperable.
(3) Visitor access to the housing.
(4) Upon request, and to the extent practicable, access to transportation to and from the nearest locale where shopping, medical, or cultural facilities and services are available on a weekly basis.
(i) In addition to any other civil penalties provided by law, any employer or any other person acting on behalf of the employer who violates or causes to be violated the provisions of this section shall be subject to a civil penalty, as follows:
(1) For the
initial violation, one hundred dollars ($100) for each underpaid employee for each pay period during which the employee was underpaid, plus an amount sufficient to recover the unpaid wages.
(2) For any subsequent violation, two hundred fifty dollars ($250) for each underpaid employee for each pay period during which the employee was underpaid, plus an amount sufficient to recover the unpaid wages.
(3) The affected employee shall receive payment of all wages recovered.
(j) If the application of any provision of any subdivision, sentence, clause, phrase, word, or portion of this section is held invalid, unconstitutional, unauthorized, or prohibited by statute, the remaining provisions thereof shall not be affected and shall continue to be given full force and effect as if the part held invalid or unconstitutional had
not been included.
(k) Every employer of goat herders shall post a copy of this part in an area frequented by goat herders where it may be easily read during the workday. Where the location of work or other conditions make posting impractical, every employer shall make a copy of this part available to goat herders upon request. Copies of this part shall be posted and made available in a language understood by the goat herder. An employer is deemed to have complied with this subdivision if the employer posts where practical, or makes available upon request where posting is impractical, a copy of the Wage Order No. 14-2001 of the Industrial Welfare Commission, updated pursuant to subdivision (c) of Section 2695.1, relating to goat herders, provided that the posted material includes a sufficient summary of each of the provisions of this part.
(l) For purposes of this section, “goat
herder” means an individual who is employed to do any of the following, including with the use of trained dogs:
(1) Tend herds of goats grazing or browsing on range or pasture.
(2) Move goats to and about an area assigned for grazing or browsing.
(3) Prevent goats from wandering or becoming lost.
(4) Protect goats against predators and the eating of poisonous plants.
(5) Assist in the kidding of goats.
(6) Provide water or feed supplementary rations to goats.
(m) This section shall remain in effect only until January 1, 2029, and as of that date is
repealed.
