California Proposition 32 - Paycheck Protection Initiative

Political contributions by payroll deduction

Many unions use funds they obtain from payroll deductions for political purposes. This includes contributions to campaigns for candidates, campaigns for ballot measures, or “independent expenditures” not directly coordinated with a campaign for a candidate or a ballot measure. Other than unions, not many corporations or other organizations obtain funds from payroll deductions to use for political purposes.

What Prop 32 would do if it passes:

  • Prohibit any corporation, labor union, government contractor, or government employer from using payroll deduction for political purposes.
  • Prop 32 would also prohibit any government contractor (including public sector labor unions) from making contributions to elected officials who play a role in awarding a contract to the contractor.

Effect on the state budget:

The state would experience increased costs to investigate possible violations of the law and to respond to requests for advice. These costs could exceed $1 million every year.

People for Prop 32 say (

  • Prop 32 prohibits money from being deducted from employees’ paychecks for political purposes without their permission.
  • Prop 32 stops special interest groups from influencing politicians with contributions.

People against Prop 32 say (

  • 99% of California corporations don’t use payroll deductions for political contributions, so Prop 32 is aimed at limiting unions.
  • Prop 32 does nothing to stop Corporate Super Political Action Committees and independent expenditure committees.



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