(a) The arbitration panel shall direct that five days prior to the commencement of its hearings, each of the parties shall submit the last best offer of settlement as to each of the issues within the scope of arbitration, as defined in this title, made in bargaining as a proposal or counterproposal and not previously agreed to by the parties prior to any arbitration request made pursuant to subdivision (a) of Section 1299.4. The arbitration panel, within 30 days after the conclusion of the hearing, or any additional period to which the parties agree, shall separately decide on each of the disputed issues submitted by selecting, without modification, the last best offer that most nearly complies with the applicable factors described in subdivision (c). This subdivision shall be applicable except as otherwise provided in subdivision (b).
§ 1299.6.Submission of Last Best Offer of Settlement By Parties; Decision of Panel
Title 9.5. Arbitration of Firefighter and Law Enforcement Officer Labor Disputes · Enacted 2000 · no amendments on record · Last verified July 29, 2026
In one sentenceSection 1299.6 requires each side to submit a last best offer on every disputed issue, or a package offer by mutual agreement, and directs the panel to select, without modification, the offer that best fits eight listed factors such as public interest, the employer's finances, comparable pay, and cost of living.
Full Text of § 1299.6
(b) Notwithstanding the terms of subdivision (a), the parties by mutual agreement may elect to submit as a package the last best offer of settlement made in bargaining as a proposal or counterproposal on those issues within the scope of arbitration, as defined in this title, not previously agreed to by the parties prior to any arbitration request made pursuant to subdivision (a) of Section 1299.4. The arbitration panel, within 30 days after the conclusion of the hearing, or any additional period to which the parties agree, shall decide on the disputed issues submitted by selecting, without modification, the last best offer package that most nearly complies with the applicable factors described in subdivision (c).
(c) The arbitration panel, unless otherwise agreed to by the parties, shall limit its findings to issues within the scope of arbitration and shall base its findings, opinions, and decisions upon those factors traditionally taken into consideration in the determination of those matters within the scope of arbitration, including but not limited to the following factors, as applicable:
(1) The stipulations of the parties.
(2) The interest and welfare of the public.
(3) The financial condition of the employer and its ability to meet the costs of the award.
(4) The availability and sources of funds to defray the cost of any changes in matters within the scope of arbitration.
(5) Comparison of matters within the scope of arbitration of other employees performing similar services in corresponding fire or law enforcement employment.
(6) The average consumer prices for goods and services, commonly known as the Consumer Price Index.
(7) The peculiarity of requirements of employment, including, but not limited to, mental, physical, and educational qualifications; job training and skills; and hazards of employment.
(8) Changes in any of the foregoing that are traditionally taken into consideration in the determination of matters within the scope of arbitration.
Plain-English Summary
Rather than crafting its own compromise, the panel in this scheme picks between the parties' own positions, which is meant to push both sides toward reasonable offers rather than extreme ones. Five days before the hearing starts, each party submits its last best offer on every issue still in dispute, drawn from what was proposed or counterproposed in bargaining. Within 30 days after the hearing ends, the panel decides each issue separately by selecting, without changing it, whichever party's offer most closely fits the factors this section lists.
The parties can change that format by mutual agreement, submitting a single package covering all the unresolved issues instead of deciding them one at a time; the panel then picks one side's whole package rather than mixing and matching. Either way, the panel's decision has to rest on the same set of traditional bargaining factors: the parties' own stipulations, the public's interest and welfare, the employer's financial condition and ability to pay, the availability of funds, how the job compares to similar fire or law enforcement positions elsewhere, the Consumer Price Index, the particular demands of the job, and any relevant changes in those factors over time.
Frequently Asked Questions
Can the arbitration panel write its own compromise instead of picking an offer?
No. The panel selects, without modification, whichever party's last best offer most nearly complies with the factors this section lists.
How does last-best-offer arbitration work issue by issue?
Each party submits its last best offer on every disputed issue five days before the hearing, and the panel picks one side's offer on each issue separately within 30 days after the hearing.
Can the parties choose package arbitration instead?
Yes, by mutual agreement, submitting a single package offer covering all unresolved issues, with the panel selecting one party's entire package.
What factors must the panel consider in choosing an offer?
Among others, the parties' stipulations, the public interest, the employer's financial condition, comparable pay for similar positions, the Consumer Price Index, and the particular demands of the job.
Amendment History
Added by Stats 2000 ch 906 (SB 402), s 2, eff. 1/1/2001.
Source & verification. Section text is reproduced verbatim from
the Deering's California Codes Annotated / vLex. Enacted by the California Legislature.
Last verified July 29, 2026.
· Official source
Also known as: last best offer arbitration firefighter policeinterest arbitration factors public safety labor