Employer Now Has the Obligation to Pay an Employee Organization’s Reasonable Attorney’s Fees and Costs After Refusing a Settlement Offer if it Fails to Obtain More Favorable Judgment (SB 550) (K-12)
On October 24, 2017, Governor Brown signed into law Senate Bill (“SB”) 550 relating to public employment. SB 550 amends section 3543.8 of the Government Code.
LEGAL UPDATE
December 21, 2017
To: Superintendents, Member School Districts (K-12)
From: Ellie R. Austin, Schools Legal Counsel
Subject: Employer Now Has the Obligation to Pay an Employee Organization’s Reasonable Attorney’s Fees and Costs After Refusing a Settlement Offer if it Fails to Obtain More Favorable Judgment (SB 550) (K-12)
Memo No. 42-2017
On October 24, 2017, Governor Brown signed into law Senate Bill (“SB”) 550 relating to public employment. SB 550 amends section 3543.8 of the Government Code.
In a dispute regarding the employer’s alleged failure to provide wages, benefits, or working conditions required by state law, SB 550 authorizes an employee organization representing one or more of its members to make a written offer of settlement at least ten (10) days before the commencement of a hearing. If the employer does not accept the settlement offer[1] and fails to obtain a more favorable judgment or award at hearing, the employer must pay the employee organization’s reasonable post-offer attorney’s fees and expenses.
SB 550 does not apply to unfair labor practice or arbitration proceedings.
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The information in this Legal Update is provided as a summary of law and is not intended as legal advice. Application of the law may vary depending on the particular facts and circumstances at issue. We, therefore, recommend that you consult legal counsel to advise you on how the law applies to your specific situation.
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[1] If the employer does not accept the offer before the hearing, or within 30 days after the offer is made, whichever is first, it shall be deemed withdrawn.
