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In September 2025, Governor Gavin Newsom signed AB 288, a new law that expands California’s authority to enforce labor relations laws when the federal government declines to act.
Beginning January 1, 2026, thePublic Employment Relations Board (PERB), which traditionally handles public-sector labor disputes, will be able to step in and enforce certain provisions of the National Labor Relations Act (NLRA) for private-sector workers when the National Labor Relations Board (NLRB) declines jurisdiction or chooses not to pursue a complaint.
Historically, only the NLRB could investigate and enforce labor complaints involving union activity or alleged retaliation. If the NLRB declined to take a case, the matter effectively ended. Now, under AB 288, that’s no longer true. When the NLRB declines or is unable to act, California’s PERB can now assume jurisdiction and pursue the complaint at the state level, a shift that ensures more labor disputes will be heard and that could lead to increased investigations and enforcement against employers statewide.
Why it Matters for Employers
Expanded Enforcement Pathways
Employers may now face labor complaints under either federal or state oversight, depending on which agency moves forward. With two potential venues, it’s more likely that a claim will be investigated rather than dismissed.
Stricter State-Level Standards
PERB has a history of interpreting labor protections broadly in favor of employees. Employers should expect heightened scrutiny of workplace conduct, communication, and disciplinary actions involving employees engaged in protected activity.
Increased Exposure for Key Industries
Especially for businesses in transportation, logistics, and construction, where independent contractor classifications and unionization efforts are common, this change may lead to bigger impacts. A worker who claims retaliation or interference tied to union organizing could now seek state-level enforcement if the NLRB declines the case.
Challenges to the Law
On October 15, 2025, the National Labor Relations Board filed a lawsuit in the U.S. District Court for the Eastern District of California challenging the law. According to the complaint, “The National Labor Relations Board seeks a declaration that the amendments to the California Labor Code in Section 2 of California Assembly Bill No. 288 are preempted by the National Labor Relations Act and an injunction against its enforcement is necessary because it creates a parallel regulatory system that undermines the federal labor policy Congress designed to be national in scope.”
This challenge may take many months to resolve, but the NLRB is seeking a preliminary injunction to stop California from enforcing AB 288 which could get issued well before the case is finally resolved. Even if AB 288 is ultimately rejected by the Court, expect that California will continue to test the bounds of expanding the rights of employees.
Preparing for January 2026
To minimize risk, California employers should take proactive steps before AB 288 takes effect:
- Review employee handbooks and workplace policies to ensure compliance with both federal and state labor laws.
- Train supervisors and HR personnel on employees’ rights to organize and to engage in protected concerted activity.
- Monitor PERB guidance and updates as the agency prepares to take on this expanded jurisdiction.
- Consult counsel before taking disciplinary action involving employees who may be involved in organizing or advocacy efforts.
With this change taking effect soon, employers should ensure their policies, practices, and training are up to date to reduce risk and maintain compliance in this more closely monitored environment. And, even if AB 288 is enjoined, these steps will protect your business from a host of other legal claims that could be brought by California employees under state and federal law.
To learn more about how AB 288 may affect your business, contact our employment law team.