Chapter 10. Local Public Employee Organizations - California Government Code Section 3502.5

3502.5.  (a) Notwithstanding Section 3502, any other provision of
this chapter, or any other law, rule, or regulation, an agency shop
agreement may be negotiated between a public agency and a recognized
public employee organization that has been recognized as the
exclusive or majority bargaining agent pursuant to reasonable rules
and regulations, ordinances, and enactments, in accordance with this
chapter. As used in this chapter, "agency shop" means an arrangement
that requires an employee, as a condition of continued employment,
either to join the recognized employee organization or to pay the
organization a service fee in an amount not to exceed the standard
initiation fee, periodic dues, and general assessments of the
   (b) In addition to the procedure prescribed in subdivision (a), an
agency shop arrangement between the public agency and a recognized
employee organization that has been recognized as the exclusive or
majority bargaining agent shall be placed in effect, without a
negotiated agreement, upon (1) a signed petition of 30 percent of the
employees in the applicable bargaining unit requesting an agency
shop agreement and an election to implement an agency fee
arrangement, and (2) the approval of a majority of employees who cast
ballots and vote in a secret ballot election in favor of the agency
shop agreement. The petition may be filed only after the recognized
employee organization has requested the public agency to negotiate on
an agency shop arrangement and, beginning seven working days after
the public agency received this request, the two parties have had 30
calendar days to attempt good faith negotiations in an effort to
reach agreement. An election that may not be held more frequently
than once a year shall be conducted by the California State Mediation
and Conciliation Service in the event that the public agency and the
recognized employee organization cannot agree within 10 days from
the filing of the petition to select jointly a neutral person or
entity to conduct the election. In the event of an agency fee
arrangement outside of an agreement that is in effect, the recognized
employee organization shall indemnify and hold the public agency
harmless against any liability arising from a claim, demand, or other
action relating to the public agency's compliance with the agency
fee obligation.
   (c) An employee who is a member of a bona fide religion, body, or
sect that has historically held conscientious objections to joining
or financially supporting public employee organizations shall not be
required to join or financially support a public employee
organization as a condition of employment. The employee may be
required, in lieu of periodic dues, initiation fees, or agency shop
fees, to pay sums equal to the dues, initiation fees, or agency shop
fees to a nonreligious, nonlabor charitable fund exempt from taxation
under Section 501(c)(3) of the Internal Revenue Code, chosen by the
employee from a list of at least three of these funds, designated in
a memorandum of understanding between the public agency and the
public employee organization, or if the memorandum of understanding
fails to designate the funds, then to a fund of that type chosen by
the employee. Proof of the payments shall be made on a monthly basis
to the public agency as a condition of continued exemption from the
requirement of financial support to the public employee organization.
   (d) An agency shop provision in a memorandum of understanding that
is in effect may be rescinded by a majority vote of all the
employees in the unit covered by the memorandum of understanding,
provided that: (1) a request for that type of vote is supported by a
petition containing the signatures of at least 30 percent of the
employees in the unit, (2) the vote is by secret ballot, and (3) the
vote may be taken at any time during the term of the memorandum of
understanding, but in no event shall there be more than one vote
taken during that term. Notwithstanding the above, the public agency
and the recognized employee organization may negotiate, and by mutual
agreement provide for, an alternative procedure or procedures
regarding a vote on an agency shop agreement. The procedures in this
subdivision are also applicable to an agency shop agreement placed in
effect pursuant to subdivision (b).
   (e) An agency shop arrangement shall not apply to management
   (f) A recognized employee organization that has agreed to an
agency shop provision or is a party to an agency shop arrangement
shall keep an adequate itemized record of its financial transactions
and shall make available annually, to the public agency with which
the agency shop provision was negotiated, and to the employees who
are members of the organization, within 60 days after the end of its
fiscal year, a detailed written financial report thereof in the form
of a balance sheet and an operating statement, certified as to
accuracy by its president and treasurer or corresponding principal
officer, or by a certified public accountant. An employee
organization required to file financial reports under the federal
Labor-Management Reporting and Disclosure Act of 1959 (29 U.S.C. Sec.
401 et seq.) covering employees governed by this chapter, or
required to file financial reports under Section 3546.5, may satisfy
the financial reporting requirement of this section by providing the
public agency with a copy of the financial reports.

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Last modified: February 16, 2015