CA AB1714

Establishes the Excluded Employee Arbitration Act to add binding arbitration as a fifth step in the grievance procedure for state excluded employees, available after the third or fourth level of internal review is unresolved.

Allows employee organizations representing excluded employees to request arbitration within 21 days after receiving a decision at the final internal review level, with arbitration conducted by a standing panel of at least 20 arbitrators designated by the department and employee organization.

Requires arbitrators to apply California law, issue written decisions within 45 days based on the written record and oral presentations, and make the arbitrator's decision legally binding.

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

Sunsets and repeals the chapter on January 1, 2028.