Democrats Insert a $32.5 Million No-Bid, No Review Labor Contract in Budget Junior (AB 86)

SACRAMENTO - On Friday evening, California Democrats slipped authorization for a $32.5 million, no-bid labor contract into Assembly Bill 86, the “Budget Bill Junior,” which tacks-on additional financial obligations to the state budget. The $32.5 million contract is also “exempt from the review or approval of any division of the Department of General Services.”

This follows extensive criticism over an expedited $35 million state contract that California’s election chief provided to “Team Biden” to get out the vote in the upcoming election.

This type of last minute, secret contracts calls its integrity into question and puts a cloud of suspicion on the awardees. The important purpose of this project—protecting essential workers—should not be tainted by secret deals.

All Californians deserve better than this.

For reference AB 86:


0559-002-0001—For support of the Secretary of Labor and Workforce Development ........................






0350-Office of the Secretary of Labor and Workforce Development ........................







The amount appropriated in this item shall be used to protect essential workers and their families and ultimately slow the spread of COVID-19 virus through employer education, worker education and engagement, and enforcement.




Employer education materials shall include, but are not limited to, accessible and user-friendly content on employer compliance on workplace health and safety, paid sick leave, worker’s compensation, anti-retaliation protections, and family and medical leave, including applicable dispute resolution and mediation services offered through the Department of Fair Employment and Housing.




Of the amount appropriated in this item, $6,000,000 shall be available for enforcement by the Department of Industrial Relations of anti-retaliation protections, employment matters related to employers’ reopening or resumption of business operations during or after the COVID-19 state of emergency, and workplace health and safety protections, including enforcement of protections that assist hospitality workers in returning to work.




Of this amount appropriated in this item, $5,000,000 relating to worker and employer training shall be available for encumbrance or expenditure until June 30, 2022, and for liquidation of encumbrances until June 30, 2024.




Contracts entered into pursuant to this item shall be exempt from Chapter 6 (commencing with Section 14825) of Part 5.5 of Division 3 of Title 2 of the Government Code, Section 19130 of the Government Code, Part 2 (commencing with Section 10100) of Division 2 of the Public Contract Code, and the State Administrative Manual, and shall be exempt from the review or approval of any division of the Department of General Services.