LOS ANGELES — California Gov. Jerry Brown signed a bill temporarily exempting the state's transit workers from pension reform as he authorized a lawsuit against the U.S. Department of Labor for forcing him to do so.

The federal government threatened to deny California transit agencies billions of dollars in grants, saying the California Public Employee Pension Reform Act of 2013 violates a 1964 federal law that protects the collective bargaining rights of public transportation employees.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.