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California Expands PERB Powers After New York, as NLRB Seeks to Halt State Backstops in Court

Federal judges will decide whether states can take over private‑sector labor cases during NLRB paralysis.

Overview

  • California’s AB 288, signed September 30, authorizes PERB to run union elections, hear unfair labor practice cases, levy civil penalties up to $1,000 per worker, and order binding arbitration after prolonged bargaining impasses.
  • The law includes triggers that allow state action when the NLRB lacks a quorum, faces court injunctions or constitutional rulings, or experiences prolonged processing delays, with phased provisions extending into 2026 and beyond.
  • The NLRB sued New York in federal court on September 12, arguing the state’s S.8034A is preempted by the NLRA and seeking declaratory and injunctive relief, followed by a motion for a preliminary injunction on September 30.
  • Amazon filed a separate New York challenge on September 22; PERB moved to pause that case given the NLRB’s suit, while unions sought to intervene to defend the state statute.
  • Legal analysts expect California’s law to face similar preemption suits, warning employers to prepare for overlapping state and federal proceedings and the risk of conflicting outcomes while litigation plays out.