Chapter 4.6. Public Transit Service Contracts of California Labor Code >> Division 2. >> Part 3. >> Chapter 4.6.
The Legislature finds and declares all of the following:
(a) That when public transit agencies award contracts to operate
bus and rail services to a new contractor, qualified employees of the
prior contractor who are not reemployed by the successor contractor
face significant economic dislocation as a result.
(b) That those displaced employees rely unnecessarily upon the
unemployment insurance system, public social services, and health
programs, increasing costs to these vital government programs and
placing a significant burden upon both the government and the
(c) That it serves an important social purpose to establish
incentives for contractors who bid public transit services contracts
to retain qualified employees of the prior contractor to perform the
same or similar work.
The following definitions apply throughout this chapter:
(a) "Awarding authority" means any local government agency,
including any city, county, special district, transit district, joint
powers authority, or nonprofit corporation that awards or otherwise
enters into contracts for public transit services performed within
the State of California.
(b) "Bidder" means any person who submits a bid to an awarding
agency for a public transit service contract or subcontract.
(c) "Contractor" means any person who enters into a public transit
service contract with an awarding authority.
(d) "Employee" means any person who works for a contractor or
subcontractor under a contract. "Employee" does not include an
executive, administrative, or professional employee exempt from the
payment of overtime compensation within the meaning of subdivision
(a) of Section 515 or any person who is not an "employee" as defined
under Section 2(3) of the National Labor Relations Act (29 U.S.C.
(e) "Person" means any individual, proprietorship, partnership,
joint venture, corporation, limited liability company, trust,
association, or other entity that may employ individuals or enter
(f) "Public transit services" means the provision of passenger
transportation services to the general public, including paratransit
(g) "Service contract" means any contract the principal purpose of
which is to provide public transit services through the use of
(h) "Subcontractor" means any person who is not an employee who
enters into a contract with a contractor to assist the contractor in
performing a service contract.
(a) A bidder shall declare as part of the bid for a service
contract whether or not he or she will retain the employees of the
prior contractor or subcontractor for a period of not less than 90
(b) An awarding authority letting a service contract out to bid
shall give a 10 percent preference to any bidder who agrees to retain
the employees of the prior contractor or subcontractor pursuant to
(c) (1) If the awarding authority announces that it intends to let
a service contract out to bid, the existing service contractor,
within a reasonable time, shall provide to the awarding authority the
number of employees who are performing services under the service
contract and the wage rates, benefits, and job classifications of
those employees. In addition, the existing service contractor shall
make this information available to any entity that the awarding
authority has identified as a bona fide bidder. If the successor
service contract is awarded to a new contractor, the existing
contractor shall provide the names , addresses, dates of hire, wages,
benefit levels, and job classifications of employees to the
successor contractor. The duties imposed by this subdivision shall be
contained in all service contracts.
(2) A successor contractor or subcontractor who agrees to retain
employees pursuant to subdivision (a) shall retain employees who have
been employed by the prior contractor or subcontractors, except for
reasonable and substantiated cause. That cause is limited to the
particular employee's performance or conduct while working under the
prior contract or the employee's failure of any controlled substances
and alcohol test, physical examination, criminal background check
required by law as a condition of employment, or other standard
hiring qualification lawfully required by the successor contractor or
(3) The successor contractor or subcontractor shall make a written
offer of employment to each employee to be rehired. That offer shall
state the time within which the employee must accept that offer, but
in no case less than 10 days. Nothing in this section requires the
successor contractor or subcontractor to pay the same wages or offer
the same benefits provided by the prior contractor or subcontractor.
(4) If, at any time, the successor contractor or subcontractor
determines that fewer employees are required than were required under
the prior contract or subcontract, he or she shall retain qualified
employees by seniority within the job classification. In determining
those employees who are qualified, the successor contractor or
subcontractor may require an employee to possess any license that is
required by law to operate the equipment that the employee will
operate as an employee of the successor contractor or subcontractor.
(a) An employee who was not offered employment or who has
been discharged in violation of this chapter, or his or her agent,
may bring an action against the successor contractor or subcontractor
in any superior court having jurisdiction over the successor
contractor or subcontractor. Upon finding a violation of this
chapter, the court shall order reinstatement to employment with the
successor contractor or subcontractor and award backpay, including
the value of benefits, for each day of violation. A violation of this
chapter continues for each day that the successor contractor or
subcontractor fails to employ the employee, within the period agreed
to pursuant to Section 1072.
(b) The court may preliminarily or permanently enjoin the
continued violation of this chapter.
(c) If the employee prevails in an action brought under this
chapter, the court shall award the employee reasonable attorney's
fees and costs as part of the costs recoverable.
(a) Upon its own motion or upon the request of any member of
the public, an awarding authority may terminate any service contract
made pursuant to Section 1072 if both of the following occur:
(1) The contractor or subcontractor has substantially breached the
(2) The awarding authority holds a public hearing within 30 days
of the receipt of the request or its announcement of its intention to
(b) A contractor or subcontractor terminated pursuant to
subdivision (a) shall be ineligible to bid on or be awarded a service
contract or subcontract with that awarding authority for a period of
not less than one year and not more than three years, to be
determined by the awarding authority.