CA SB716

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

Permits arbitration requests for grievances that have not been resolved after the fourth level of review (or third level if no fourth level exists), with requests must be submitted within 21 days of the decision.

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

Mandates arbitrators issue written decisions within 45 days based on California law and existing grievance documentation, with the decisions being legally binding; requires the nonprevailing party to pay all arbitration costs, prohibiting costs from being passed to the excluded employee.

Automatically repeals the chapter on January 1, 2029.