CA SB179

Establishes the Excluded Employee Arbitration Act as a fifth step in the grievance procedure for state excluded employees, allowing binding arbitration of unresolved grievances.

Permits employee organizations representing excluded employees to request arbitration if the grievance remains unresolved after the third or fourth level of departmental review and the request is submitted within 21 days of that decision.

Requires designation of a standing panel of at least 20 arbitrators, with additional arbitrators available from the California State Mediation and Conciliation Service if fewer than three are available.

Mandates that arbitrators apply California law, issue written decisions within 45 days of the hearing conclusion, and base decisions solely on the written grievance record and oral presentations at arbitration.

Requires the nonprevailing party to pay all arbitration costs, including certified shorthand reporter fees, with explicit prohibition against passing these costs to the excluded employee.