VOLUME 45, NUMBER 30 ● OCTOBER 18, 2019 CalChamber Files Legislative Year: Mixed Bag Lawsuit to End Governor Gavin which would have limited the ability to Prop. 65 Warnings Newson finished qualify an initiative or recall petition for signing/vetoing all the ballot. for Acrylamide bills on October • AB 1478 (Carrillo; D-Los 13. The California Angeles), which would have added On behalf of its Chamber of another private right of action to various members, the Cali- Commerce was Labor Code provisions. fornia Chamber of tracking 62 bills • AB 171 (Gonzalez; D-San Diego), Commerce filed a on his desk, 32 which would have created inconsis- lawsuit on October supported and 30 tent standards for sexual harassment 7 to stop the multi- opposed. So how that would result in more unnecessary tude of Proposition did we do? litigation. 65 warnings for the Out of the 30 opposed bills, the • AB 589 (Gonzalez; D-San Diego), presence of acryl- Governor vetoed 11, including job killer which would have required all employers amide in food. SB 1 (Atkins; D-San Diego) that could to provide employees with an unneces- The lawsuit have impacted voluntary water agree- sary notice about their rights regarding filed against California Attorney General ments, existing water projects, and water immigration-related documents. Xavier Becerra, who is responsible flows for agriculture, as well as develop- • SB 218 (Bradford; D-Gardena), for enforcing Proposition 65, asks the ment. Some of the other significant bills which would have lifted the existing U.S. District Court, Eastern District of vetoed included: preemption under the Fair Employment California to stop the Attorney General • AB 1451 (Low; D-Campbell), See Legislative Year: Page 4 and private enforcers from proceeding with Proposition 65 litigation over acryl- amide in food. “The effect of too many bogus warn- Lt. Governor Leads Trade Delegation to Mexico ings is no warnings,” said CalChamber President and CEO Allan Zaremberg in a statement. “This case is about clarify- ing for both businesses and consumers that food does not require Proposition 65 warnings for acrylamide. This will reduce unnecessary fear for consumers and liti- gation threats for businesses.” Misleading Warnings Currently, Proposition 65 requires any business that produces, distributes or sells food products containing acrylamide to provide a warning unless the business can See CalChamber Files Lawsuit: Page 14 Inside Final Status Report on Major Lt. Governor Eleni Kounalakis addresses the delegation during the meeting at the Mexico Ministry of Bills: Pages 5-13 Foreign Affairs on the third day of the October 1–4 mission. At right is Ambassador Mario Chacon, Mexico’s Director General for North America. See story on Page 15. WWW.CALCHAMBERALERT.COM OCTOBER 18, 2019 ● PAGE 2 CALIFORNIA CHAMBER OF COMMERCE Labor Law Corner Canceling Shifts on Short Notice May Lead to Reporting Time Pay What ‘Reporting to Work’ This is because reporting time pay is Means Now designed not only to discourage employ- ers from scheduling employees when Traditionally, reporting time pay was there is insufficient work, but also to required when an employee physically compensate employees for the costs of showed up to work and was sent home or preparing to work (such as arranging given fewer than half the scheduled hours. child care, commuting, or turning down But as technology has advanced, and hours at other jobs). employees can check shift schedules If an employee learns immediately Michelle Galbraith online or via phone or text, it has become HR Adviser prior to leaving for work—or in the less clear what constitutes “reporting to middle of a commute—that a shift has How much notice must I give my employ- work” so as to trigger reporting time pay. been canceled, that employee still will ees that I’m canceling a shift in order to For example, in a recent case, an have incurred expenses related to prepar- avoid paying reporting time? employer that required its employees to ing for work. Anytime an employee reports to work call in two hours before the scheduled start but is given less than half of the employ- of their shifts to determine whether they Some Local Requirements ee’s regular shift, the employer owes that would be needed that day was ordered to Employers also should be aware employee reporting time pay. pay reporting time pay if the employees that municipalities may set their own The reporting time payment is equal to were not given a shift. The court held that requirements for short notice changes to half of the scheduled or regular shift, no the act of calling in constituted “report- employee schedules; for example, some less than two hours and no more than four. ing” to work, even though the employees San Francisco retail workers are entitled may never have left their houses. See Canceling Shifts: Page 4 California Chamber Officers Grace Evans Cherashore Statement of Ownership, Management and Circulation Chair Alert, Statement of Ownership, Management distribution: 2,944. Free or nominal rate Mark Jansen and Circulation. Publication number 0981- outside-county copies included on PS Form First Vice Chair 900. Filing Date: September 30, 2019. Alert 3541: 1,305. Total free or nominal rate Donna L. Lucas is published weekly during the legislative distribution: 1,305. Total distribution: 4,249. Second Vice Chair session with exceptions by the California Copies not distributed: 466. Total: 4,715. Kailesh Karavadra Chamber of Commerce. Number of issues Percent paid: 69%. Third Vice Chair published annually: 34. Annual subscription Number copies of single issue published Terry MacRae price: $50. nearest to filing date (September 27, Immediate Past Chair Complete mailing address of known office 2019): Total number of copies: 4,700. Paid of publication and headquarters or general circulation: Mailed outside-county paid Allan Zaremberg business office of publisher: 1215 K Street, subscriptions stated on PS Form 3541: President and Chief Executive Officer 14th Floor, Sacramento, CA 95814. Contact 3,078. Total paid distribution: 3,078. Free person: Ann Amioka. Telephone: (916) or nominal rate outside-county copies Alert (ISSN 0882-0929) is published weekly 444-6670. included on PS Form 3541: 1,286. Total free during legislative session with exceptions by California Chamber of Commerce, 1215 K Full names and complete mailing addresses or nominal rate distribution: 1,286. Total Street, Suite 1400, Sacramento, CA 95814- of publisher, editor and managing editor: distribution: 4,364. Copies not distributed: 3918. Subscription price is $50 paid through Allan Zaremberg, Publisher. Ann Amioka, 336. Total: 4,700. Percent paid: 70%. membership dues. Periodicals Postage Paid at Sacramento, CA. Vice President, Communications. Sara I certify that all information furnished on Proffit, Associate Editor. 1215 K Street, 14th this form is true and complete. I understand POSTMASTER: Send address changes to Alert, 1215 K Street, Suite 1400, Sacramento, CA Floor, Sacramento, CA 95814. that anyone who furnishes false or misleading 95814-3918. Publisher: Allan Zaremberg. Owner: California Chamber of Commerce information on this form or who omits Executive Editor: Ann Amioka. Associate Editor: (nonprofit), 1215 K Street, 14th Floor, material or information requested on the Taryn DeOilers. Art Director: Neil Ishikawa. Capitol Correspondent: Sara Profitt. Sacramento, CA 95814. form may be subject to criminal sanctions Known bondholders, mortgagees and other (including fines and imprisonment) and/or Permission granted to reprint articles if credit is given to the California Chamber of security holders owning or holding 1 percent civil sanctions (including civil penalties). Commerce Alert, citing original publication or more of total amount of bonds, mortgages date of article, and reprint is mailed to Alert or other securities: None. at address above. Average number copies each issue during Email: [email protected]. preceding 12 months: 4,715. Paid circulation: Ann S. Amioka Home page: www.calchamber.com. Mailed outside-county paid subscriptions Vice President, Communications stated on PS Form 3541: 2,944. Total paid September 30, 2019 WWW.CALCHAMBERALERT.COM CALIFORNIA CHAMBER OF COMMERCE OCTOBER 18, 2019 ● PAGE 3 The Workplace The Good, the Bad and the Ugly of Hosting an Off-Site Work Event Off-site work team building. Especially for compa- Not all problems arise out of bad events can help nies with telecommuting or flexible behavior. Depending on the activity, work- create a more schedule workers, a company retreat can ers’ compensation claims may arise if collaborative connect employees face-to-face and build employees are hurt during retreat activities. workforce, but personal connections, Shaw points out. Employers should have employees sign they also come Moreover, retreat activities, such as liability waivers, but workers’ compensa- with a range of having a cake-making competition for tion risks will remain, Shaw explains. liability risks. In example, can help level employee ranks, In fact, Shaw recommends hiring a Episode 33 of erasing lines of authority, and thus devel- professional company to run the retreat, The Workplace podcast, CalChamber Exec- oping better, stronger, more trusting work so employers don’t have to figure it all utive Vice President and General Counsel relationships, she tells Frank. out themselves. Erika Frank and employment law expert “When you are doing little fake cake “It’s money well-spent,” she says. “If Jennifer Shaw cover the benefits and draw- wars, and it’s you and your boss against you’re already going to spend the money backs of hosting an off-site work event. somebody else and their boss, all of a on the hotel and the food, and the drink sudden you’re just four people having and the activities, get the pros in.” ‘It’s Who You Are With’ fun,” Shaw says. Ultimately, Shaw says, off-sites can “Off-sites,” or company retreats, can enhance work connections, but they take place in a wide range of locations— The Bad, the Ugly shouldn’t be used to get to know your from the fancy, such as Napa, to the prac- So, Frank asks, where do retreats go employees.