Employment

The law strengthens employee representation and adds workplace standards for goat herders, while giving the state more options to manage employee-benefit reserves. It also permits eligible members of two state boards to join CalPERS.

What the law does ​

• Makes permanent the right of a public-sector union to hold a paid, up-to-30-minute worksite meeting with in-person new hires when the employer has not held an in-person orientation within 30 days.
• Allows Department of Human Resources and state dental-plan contracts to establish segregated claims-reserve accounts, including accounts held outside the State Treasury through a contracted carrier, subject to state ownership, reporting, security, and return-of-funds requirements.
• Lets reserve-account funds pay benefit-program expenses, cushion future premium increases, reduce contributions, support cost-containment programs, or increase plan benefits.
• Allows members of the Alcoholic Beverage Control Appeals Board and Central Valley Flood Protection Board to elect CalPERS membership and credits qualifying pre-2027 board service as full-time service.
• Establishes through January 1, 2029, wage, meal-break, rest-break, tools, lodging, communication, transportation-access, posting, and penalty rules for goat herders.

Who it affects ​

• Public employers, exclusive employee representatives, and newly hired public employees working in person.
• State employees, annuitants, eligible family members, employers, and contracted carriers participating in self-funded benefit or dental plans.
• Members of the Alcoholic Beverage Control Appeals Board and Central Valley Flood Protection Board.
• Goat herders and their employers.

Context ​

The act took effect immediately as a budget-related appropriations measure.

Breakdown ​

Union Access for New Hires ​

AB 187 confirms that a qualifying in-person meeting between an exclusive employee representative and new employees counts as required access to the employer's new-hire orientation and onboarding process. It also removes the June 30, 2027 sunset date, making the in-person meeting rules permanent. The change extends duties for some local public employers.

Key takeaways

• A union that is the exclusive employee representative may use a qualifying in-person worksite meeting to meet mandatory new-hire orientation access requirements.
• The meeting applies when the employer has not held an in-person orientation within 30 days after a new employee starts and the employee works in person.
• New employees must be given the opportunity to attend the meeting during work hours and be relieved of other duties to do so.
• The bill eliminates the June 30, 2027 expiration date for these in-person meeting requirements.
• Because the bill continues duties for certain local public employers, it creates a state-mandated local program.

State Employee Benefit Reserve Accounts ​

AB 187 allows contracts for self-funded or self-insured state employee benefit programs to include a claims reserve account. The account may cover benefit-program expenses and help offset future premium increases. It may be held outside the State Treasury System through a contracted carrier if required safeguards, including keeping the funds separate and identifiable, are met.

Key takeaways

• The bill allows benefit-program contracts to establish a claims fund reserve account.
• Reserve-account funds may be used to administer benefit programs, including paying contracted program expenses.
• The account may also be used to help defray future premium increases.
• A reserve account may be held outside the centralized State Treasury System using a contracted carrier’s taxpayer identification number.
• Funds deposited in an outside account must meet specified safeguards, including being segregated and clearly identifiable.
• The bill makes an appropriation by authorizing new uses of a continuously appropriated fund.

Dental Plan Claims Reserves ​

AB 187 allows dental care plan contracts for state employees, retirees, and eligible family members to include a claims reserve account for administering benefits and paying program expenses. The reserve account may be kept outside the State Treasury System under a contracted carrier’s taxpayer identification number if required safeguards are met, including keeping the funds separate and clearly identifiable.

Key takeaways

• Dental care plan contracts may establish a claims fund reserve account for the benefit program.
• The reserve account may be used to administer benefits, including to deduct contracted program expenses.
• A qualifying reserve account may be created outside the centralized State Treasury System using the contracted carrier’s taxpayer identification number.
• Funds placed in an outside reserve account must be segregated and clearly identifiable, along with meeting other specified requirements.

PERS Coverage for Additional Board Members ​

The bill allows members of the Alcoholic Beverage Control Appeals Board and the Central Valley Flood Protection Board to join the Public Employees’ Retirement System if they choose to do so. It also sets rules for calculating their PERS service credit, including credit for service performed before January 1, 2027.

Key takeaways

• Board members of the Alcoholic Beverage Control Appeals Board may elect to become PERS members.
• Board members of the Central Valley Flood Protection Board may elect to become PERS members.
• The bill establishes how PERS service credit will be calculated for these board members.
• The service-credit rules include treatment of service performed before January 1, 2027.
• The bill also makes nonsubstantive changes to existing law.

Protections for Goat Herders ​

Until January 1, 2029, the bill extends labor protections similar to those for sheepherders to qualifying goat herders. These protections cover pay, meal and rest breaks, lodging, and other job conditions. Most goat-herder employers must also post the goat-herder and sheepherder rules where goat herders can easily read them in a language they understand.

Key takeaways

• The bill creates temporary labor protections for goat herders through January 1, 2029.
• The protections address wages, meal and rest periods, lodging, and other working conditions.
• The bill applies these protections to goat herders as defined by the bill.
• Except where specified, employers must post the goat-herder and sheepherder provisions in a place goat herders regularly use.
• The required notice must be easy to read during the workday and provided in a language the goat herder understands.