Understanding AB 288: New Law Granting State Agency Authority Over Private Sector Labor Disputes

At the end of September 2025, Governor Gavin Newsom signed into law Assembly Bill (AB) 288. This new law grants the California Public Employment Relations Board (PERB) greater authority to intervene in labor disputes involving private-sector workers. This new legislation allows PERB to enforce labor rights that were usually handled by the National Labor Relations Board (NLRB). With federal labor protections in a state of uncertainty and delays at the NLRB, AB 288 provides a crucial safety net for employees looking to enforce their rights to organize, bargain collectively, and address unfair labor practices.

What is AB 288?

Assembly Bill (AB) 288 is a California law that permits PERB, which has historically overseen labor disputes in the public sector, to intervene and enforce certain federal labor protections for private-sector workers when federal authorities are unable or unwilling to act. This law marks a significant expansion of PERB’s powers, allowing the board to resolve disputes, certify unions, and manage unfair labor practice claims in areas that usually fall under the NLRB’s jurisdiction.

This change came in response to the issues the NLRB has been facing, such as a lack of quorum and budget constraints. These issues have hindered the board’s operations. In situations where the NLRB cannot promptly address an employee’s complaint, AB 288 guarantees that California workers have an alternative route to seek justice.

The Impact of AB 288 on Employees

As an employee, when you have a labor-related issue, you expect your case to be handled promptly and without interruptions. However, when federal systems stall, workers are often left without timely recourse. AB 288 provides a crucial protection against these delays and interruptions by giving California’s PERB the authority to step in when the NLRB cannot or will not act.

AB 288 provides California employees with a state-level avenue for pursuing their rights to organize, form unions, and challenge unfair labor practices, including discrimination and retaliation. Under AB 288, PERB can:

• Investigate and make decisions on claims of unfair labor practices for private-sector workers
• Certify bargaining representatives and oversee union elections
• Order remedies and penalties when employees engage in repeated violations
• Require binding arbitration when contract negotiations have stalled for over six months

These measures are designed to ensure that worker protections don’t come to a standstill simply because federal enforcement has slowed down or ceased.

Additionally, AB 288 empowers PERB to impose civil fines of up to $1,000 for each affected worker if an employer is found to be consistently engaging in unfair labor practices.

Anticipated Legal Challenges

While many see AB 288 as a win, this law is likely to face challenges. Critics argue that this law may conflict with federal law, as the National Labor Relations Act (NLRA) typically prohibits states from regulating areas that fall under federal jurisdiction. However, the California legislature is ready to defend the law against the anticipated legal challenges, arguing that it upholds workers’ rights.

AB 288 is set to become effective on January 1, 2026.

Contact a California Employment Lawyer

As a California worker, it is essential to understand AB 288 and how this law affects your workplace rights. If you need help understanding this law or need assistance with an employment law-related matter, contact a California employment lawyer.