Labor & Employment Law Daily Wrap Up, LOCAL LEGISLATION—CALIFORNIA—Lawmakers pass legislation preventing use of force majeure provision for labor disputes by waste service providers, (Sep 29, 2026)

By Brandi O. Brown, J.D.

Teamsters applauded the move, which prohibits the use of such provisions to shield providers in the event of a work stoppage arising out of or in connection with a labor dispute.

Over the weekend, Governor Gavin Newsom signed into law Senate Bill 1371, which prohibits any franchise contracts, licenses, or permits for solid waste handling services entered into or substantially amended by a local agency on or after January 1, 2027, from including a force majeure provision that excuses or suspends the service provider’s obligation to perform under the franchise contract, license, or permit in the event of a work stoppage arising out of or in connection with a labor dispute.

Void and unenforceable. The bill would also provide that any force majeure provision in a franchise contract, license, or permit for solid waste handling services is void and unenforceable to the extent that it excuses or suspends performance due to a work stoppage arising out of or in connection with a labor dispute.

The International Brotherhood of Teamsters is applauding this effort, which it claims will safeguard sanitation workers and hold waste haulers accountable for prolonging work stoppages.

Treated like a natural disaster. Contracts between waste companies and municipalities typically have a “force majeure” clause, the union notes, which shields the company from being penalized for failing to fulfill its contractual obligations during major disruptions like natural disasters. However, those same companies often include labor disputes as a qualifying force majeure disruption.

SB 1371 closes this loophole, Teamsters explains.

“This is a big day for California workers. For too long, waste companies have gotten away with making communities and unions foot the bill for employer-caused strikes,” said Peter Finn, Co-Chair of Teamsters California. “SB 1371 goes a long way toward leveling the playing field.”

Trying to drive public sentiment. The Teamsters represent thousands of waste workers throughout the state. Currently, over 3,000 of them represented by Teamsters Local 396 are bargaining for new contracts with major employers, including Republic Services and Waste Management.

“Waste companies always try to turn the public against workers who are forced to strike for better conditions—even when the employers cause the strike and keep getting paid for collections that aren’t happening,” said Mike Di Bene, a 15-year Republic Services driver represented by Teamsters Local 70. “This is one of the worst things management does to try to hurt union waste workers like me. But thanks to SB 1371, California haulers can no longer use this abusive tactic. Now, workers have the power.”

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