Public WorksQuestion 690 of 690

A Project Labor Agreement (PLA) on a California public works project is generally:

a.Prohibited by California law as discriminatory against non-union contractors
b.Permitted if the awarding body's PLA satisfies Public Contract Code §2500 (allowing nondiscriminatory bidding/contracting by both union and non-union contractors, recognizing the right of workers to choose union representation, prohibiting work stoppages, and binding all contractors and subs on the project to its labor terms) — and Labor Code §1771.6 / Gov. Code §65040.13 may restrict state funding for charter cities that ban PLAs
c.Permitted only on federally funded projects
d.Required on every state-funded project over $1 million

Explanation

Public Contract Code §2500 sets baseline statutory criteria for valid PLAs in California: nondiscriminatory access for union and non-union bidders, recognition of workers' right to choose representation, no-strike/no-lockout provisions, binding effect on all contractors, and procedures for labor disputes. SB 922 (2011) and SB 829 (2012) further restrict state funding to charter cities that prohibit PLAs on locally funded projects. PLAs are NOT prohibited, nor limited to federal projects, nor universally required. The awarding body has discretion under §2500 to use a PLA after making the required findings, typically of project complexity or scale.

Law Reference: Public Contract Code §2500

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