HR Management & Compliance

News Notes: New Law Bars Use Of State Funds For Union Activities

A new law (A.B. 1889) effective Jan. 1, 2001, prohibits employers who receive state contracts worth $50,000 or more from using the funds to assist, promote or deter union organizing. Each time a contractor requests payment from the state, it must certify that it is in compliance with this restriction and it must have records to back up the certification. The law also covers private employers who receive funds of $10,000 or more in a calendar year for participation in any state program. Contractors are liable for fines of $1,000 per employee per violation. And grant recipients can be ordered to reimburse the state for three times the amount of funds that were used for activities forbidden by the statute.

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