CA SB950

Establishes the Excluded Employee Arbitration Act to permit employee organizations representing excluded state employees to request binding arbitration of grievances as a fifth step in the grievance process.

Allows arbitration requests only for grievances alleging violations of Title 2 of the California Code of Regulations that remain unresolved after the third or fourth level of departmental review, with requests submitted within 21 days.

Requires designation of a standing panel of at least 20 arbitrators selected by the Department of Human Resources and employee organization, with additional arbitrators available from the California State Mediation and Conciliation Service if fewer than three remain.

Establishes that arbitrators' decisions are legally binding, must be issued within 45 days, and must apply California law based on the written record and oral presentations.

Requires the nonprevailing party to pay all arbitration costs including certified shorthand reporter fees, but prohibits arbitrators from ordering excluded employees to pay costs or allowing costs to be passed on to the excluded employee.