Environment
Solid waste handling services: labor dispute
California bars waste-service contracts from treating labor-related work stoppages as force majeure.
Local governments cannot let solid-waste providers suspend service obligations because of a work stoppage tied to a labor dispute. The rule applies statewide, including charter cities.
What the law does
- Prohibits local agencies, starting January 1, 2027, from including these force majeure clauses in new or substantially amended solid-waste service franchises, licenses, or permits.
- Voids and makes unenforceable any such clause to the extent it excuses or suspends service during a labor-dispute-related work stoppage.
- Defines a substantial amendment as a mutually agreed change to a majority of a contract, license, or permit’s material terms.
- Allows reimbursement to local agencies and school districts if the Commission on State Mandates finds state-mandated costs.
Who it affects
- Cities, counties, and other local agencies that award solid-waste service franchises, licenses, or permits.
- Solid-waste handling service providers.
- Workers and employers involved in labor disputes affecting solid-waste services.
Context
The Legislature declared uninterrupted solid-waste handling during labor disputes a statewide concern.