NLRB sues California over new labor law

(CN) — The National Labor Relations Board is suing California over a new state law that empowers its Public Employment Relations Board to regulate private-sector labor disputes.

In its lawsuit, filed in U.S. District Court for the Eastern District of California, the National Labor Relations Board seeks to block enforcement of Assembly Bill 288, which Governor Gavin Newsom signed into law on Sept. 30.

The law allows California to step in when the NLRB is unable or declines to act. This includes situations where the board lacks a quorum, faces constitutional challenges or is blocked by a court. The law also comes into play if an administrative law judge takes more than six months to issue a decision, if a review or appeal remains unresolved for six months, or if a case on exceptions stays pending for more than a year.

The NLRB argues that the legislation violates the Supremacy Clause of the U.S. Constitution by creating a parallel regulatory system that conflicts with its exclusive federal authority over private-sector labor relations.

It also contends that such state intervention undermines decades of established federal labor policy.

“Section 2 of AB 288 is preempted by the [National Labor Relations Act] under the Supremacy Clause of the United States Constitution because it empowers PERB to regulate activity arguably protected or prohibited by the Act and stands as an obstacle to the accomplishment and execution of the full purposes and objectives of Congress,” the NRLB said in the lawsuit.

California enacted the disputed legislation amid concerns about federal enforcement of worker protections. When Newsom signed AB 288, he framed it as a necessary response to federal inaction.

“With the federal government not only asleep at the wheel, but driving into incoming traffic, it is more important than ever that states stand up to protect workers and ensure they have a path to defend their right to organize and collectively bargain,” Newsom said in a statement. “California is a proud labor state — and we will continue standing up for the workers that keep our state running and our economy booming.”

Assemblymember Tina McKinnor, the bill’s author, was pointed in her criticism of federal labor policy.

“The current president is attempting to take a wrecking ball to public and private sector employees’ fundamental right to join a union and collectively bargain for fair wages, benefits and safe working conditions,” McKinnor said in the statement. “California will not sit idly as its workers are systematically denied the right to organize due to employer intransigence or federal inaction.”

Lorena Gonzalez, president of the California Federation of Labor Unions, AFL-CIO, said in the statement it is “the most significant labor law reform in nearly a century.”

The NLRB argues that regardless of California’s motivations, the state cannot legally create its own system for regulating private-sector labor relations.

“The enactment of Section 2 of AB 288 creates an instant conflict with the federal scheme because it disrupts the NLRB’s exclusive authority to regulate most private sector labor relations,” the NLRB said in the lawsuit.

The National Labor Relations Act, passed in 1935, guarantees private-sector employees the right to organize, bargain collectively and engage in other protected activities. The NLRB was created to enforce these rights and prevent unfair labor practices. Federal preemption in this area has been a cornerstone of labor law for nearly 90 years, ensuring that companies and workers face consistent rules regardless of location.

If the court sides with California, other states could follow suit with similar legislation, potentially creating a patchwork of varying labor regulations across the country.

A ruling in favor of the NLRB could reaffirm federal powers over labor relations and signal that states cannot establish alternative enforcement mechanisms, even when they perceive federal agencies as failing in their duties.

The federal government is represented by attorneys Nancy Platt, Dawn Goldstein, and Chad Wallace, all with the National Labor Relations Board’s office in Washington.

Representatives for Gavin Newsom and the National Labor Relations Board did not immediately respond to requests for comment.

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