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AB 339: A new procedural layer for contracting out public services in California
LCW Partner Alexander Volberding authored an article explaining a new California law that changes how public agencies must approach outsourcing bargaining unit work. The piece focuses on how the law affects contracting timelines and labor relations obligations.
The article summarizes Assembly Bill 339 (AB 339), which takes effect January 1, 2026, and requires California local public agencies to provide advance notice to unions before pursuing contracts for services that could be performed by represented employees. It explains that, under the Meyers-Milias-Brown Act, PERB has long held that contracting decisions driven by cost savings or staffing challenges generally trigger a duty to meet and confer. AB 339 responds to union concerns that agencies often give notice too late—after RFQs or RFPs are already underway—by mandating earlier notice and thereby reshaping the contracting process to allow for more meaningful bargaining.
To access the full article, please click the following link: https://www.dailyjournal.com/articles/389123-ab-339-a-new-procedural-layer-for-contracting-out-public-services-in-california