New MMBA Notice Requirement for Contracting Out Bargaining Unit Work

For local public employers with represented workforces, a new law effective January 1, 2026, requires giving the union written notice before taking certain actions involving covered contracts for services. Governor Gavin Newsom recently signed AB 339, adding Government Code section 3504.1 to the Meyers-Milias-Brown Act, the primary local agency labor law.

When The New Law Does and Does Not Apply

Specifically, the new notice requirements are triggered when the agency issues a request for proposals, request for quotes, or renews or extends an existing contract, to perform services within the scope of work of the job classifications represented by the union. This notice must be provided 45 days before the public agency issues the request or takes action on an existing contract.  

These notice requirements only apply to contracts for work or job duties that are performed by employees in an agency’s bargaining unit (i.e., “bargaining unit work”). Otherwise, this provision is entirely inapplicable. If the RFP/RFQ or contract does involve bargaining unit work, then the new notice provisions will apply unless the RFP/RFQ or contract fits within one of the exceptions, which are:

• A contract for construction, alteration, demolition, installation, repair, or maintenance work that is public works-prevailing wage work (i.e. is subject to Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of the Labor Code), nor to a contract for highly specialized data, software, or services related to that construction, alteration, demolition, installation, repair, or maintenance work; 
• A contract for services described in Government Code Sections 4525 or 4529.10 (architects, engineers, land surveying, and construction project management) or that is related to the planning, design, administration, oversight, review, or delivery of public works, residential, commercial, or industrial buildings, or other infrastructure projects subject to adopted uniform codes or standards.  

For many agencies, this will mean that a substantial portion of their work that is contracted out is not covered by this new notice provision. In addition, AB 339 provides that, if an emergency or other exigent circumstance prevents the public agency from providing 45 days’ notice, the public agency shall provide as much advance notice as is practicable under the circumstances.

The Notice Requirements

Where notice is required, it must include all of the following:

1. The anticipated duration of the contract.
2. The scope of work under the contract.
3. The anticipated cost of the contract.
4. The draft solicitation, or if not yet drafted, any information that would normally be included in a solicitation.
5. The reason the public agency believes the contract is necessary.

A couple of issues with these notice issues may, as a practical matter, pose some difficulties for agencies. First, at the time of the RFP/RFQ, some of the information may be unknown (i.e the anticipated cost of the contract). Agencies facing that quandary will have to use the best estimates given the anticipated work and duration. Second, the provision allowing for less notice in emergency or exigent situations does not contain any details of what showing about the situation is required, leaving it unclear for agencies. At a minimum, agencies should provide as much notice as possible in these circumstances. Absent further legislative clarifications, agencies should communicate with the affected union and share as much information to support the emergency/exigency as possible.

Planning for Compliance

While on initial review, this new law may seem to impose burdensome requirements, the impact should be manageable with advance planning. Agencies should review their contracts already in place, as well as those RFP/RFQs that they anticipate issuing, to determine if the new law applies (what is the scope of work, and do any union members perform that work), and for each contract/RFP/RFQ to which the law applies, develop a timeline which allows notice to be provided. It may also be helpful to evaluate services that could be needed on an emergency basis, and determine whether an “on-call” agreement could be developed and approved, which may alleviate the need for approval of emergency contracts. Early discussions with unions that will be receiving these notices may also be helpful to ensure all of the parties have the same understanding about the required notices and the process when there are exigent or emergency situations.

Finally, it bears noting that this law does not change existing bargaining obligations. Agencies generally are already required to provide bargaining units with notice and an opportunity to meet and confer about the outsourcing/contracting out of work that is being performed by bargaining unit employees. The addition of a 45-day notice period mandated by the new Government Code provision may, in many circumstances align with the agency’s existing obligations to meet and confer.

Disclaimer: BBK Legal Alerts are not intended as legal advice. Additional facts, facts specific to your situation, or future developments may affect subjects contained herein. Seek the advice of an attorney before acting or relying upon any information herein.