Collective Bargaining Agreements Under the Labor Code

Labor Code Division 2, Part 3, Chapter 7.5 discusses collective bargaining agreements, which was added in 1941 by Chapter 1188. Labor Code Section 1126 provides that any collective bargaining agreement between an employer and a labor organization is enforceable at law or in equity, and a breach of the collective bargaining agreement by any party will be subject to the same remedies, including injunctive relief, as are available on other contracts in the courts of California.

Section 1127 states that, where a collective bargaining agreement between an employer and a labor organization contains a successor clause, this clause is binding upon and enforceable against any successor employer who succeeds to the contracting employer’s business (but for no more than three years from the CBA’s effective date) until the expiration date of the agreement stated in the agreement.

The term “successor employer” is defined. This section does not apply to a receiver or trustee in bankruptcy, or to any employer which is a public entity, or to any employer who is subject to the National Labor Relations Act, Agricultural Labor Relations Act, or the Railway Labor Act.

In addition, an employer who is a party to a collective bargaining agreement containing a successor clause has the affirmative duty to disclose the existence of the agreement and clause to any successor employer.

Section 1128 provides that, where a party to a collective bargaining agreement prevails in a court action to compel arbitration of disputes concerning the collective bargaining agreement, the court is required to award attorney’s fees to the prevailing party, with exceptions. This section does not apply to public employment.