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Home , November 6

VOLUME 46, NUMBER 31 • 6, 2020

Trends in California Voters Weigh in on Taxes, Legislative Races This election Independent Contractors is one that seems like it Election Day California’s innovation economy and will never end. is over, but should be celebrated, not discouraged.” While a signif- ballot counting On other issues: icant number continues to • Voters rejected again an effort to of ballots are determine the expand governments’ authority to impose still left to be voters’ will on rent control; CalChamber-opposed counted—and perhaps many more remain issues ranging Proposition 21 was failing with 59.7% no in the hands of the U.S. Postal Service from California to 40.3% yes. that are eligible to be counted if they property taxes to supporting economic • Also failing was CalChamber- arrive in the local registrar’s office by diversity and flexibility for workers. opposed Proposition 23, an attempt to —there are some notewor- As this article was prepared, California establish state requirements for kidney thy trends taking shape in California’s Chamber of Commerce-opposed Propo- dialysis clinics, 64% no to 36% yes. legislative races. sition 15, the $12.5 billion split roll prop- • Proposition 16, the CalChamber- At this point, the outcome in some of erty tax increase, appeared headed toward supported measure to promote diversity the key races for the California Assembly defeat with 51.7% no to 48.3% yes. in public employment and education, was and Senate is uncertain. These matchups CalChamber-supported Proposition 22, failing, 56% no to 44% yes. that attract big bucks from the various clarifying employment classification rules • Proposition 20, supported by interest groups will be some of the last for app-based drivers, was winning by a CalChamber because it included provi- ones called. wide margin—58.4% yes to 41.6% no. sions to address serial thefts in addition to Still, there are some trends emerging “Prop. 22 was a big win for California restricting parole for non-violent offend- that, if they hold, will be interesting to workers who want the independence, ers, was being voted down, 62.3% no to California political observers. Early signs flexibility, and income opportunities 37.7% yes. that are encouraging for Republicans in provided by working for themselves,” said County election officials must report the Assembly are that no GOP incumbent CalChamber President and CEO Allan final official results on state contests by appears to have lost their seat. Strong Zaremberg. “Especially in these uncertain 4. Results will be certified by showings in Orange County indicate times, we should be focused on providing . incumbent Republicans Philip Chen workers with all options to support their The latest election results are avail- (AD 45), Steven Choi (AD 68) and Janet families. The takeaway for the Legislature able on the website of the Secretary of Nguyen in an open seat (AD 72) are is that freelance work is integral to State at electionresults.sos.ca.gov. poised for victory. Other incumbent Republicans that appear to have survived are Jordan Cunningham (AD 35), Tom Lackey (AD CalChamber to Offer Post-Election Webinar 36) and first-time candidate Suzette Vallardares (AD 38), who was in a runoff the two-hour webinar starting at 10 a.m. with another Republican. is the presentation of the CalChamber’s Sixth Annual People’s Voice Survey. See Trends: Page 3 This post-election survey is designed to offer insights on California voters’ priorities and attitudes on a variety of Inside The California Chamber of Commerce issues. Pollsters Robert Green, Pierrepont will be presenting its first Post-Election Consulting and Analytics, LLC, and CalChamber Pursues Prop. 65 Webinar on Tuesday, . Adam Rosenblatt, Core Decision Warning Relief: Page 5 Planned for the opening segment of See CalChamber to Offer: Page 4 WWW.CALCHAMBERALERT.COM

CALIFORNIA CHAMBER OF COMMERCE NOVEMBER 6, 2020 • PAGE 2

Labor Law Corner Options to Consider When an Employee Threatens to Commit Suicide Alternatively, you can take the indi- an impact on the employees’ job perfor- vidual to an emergency room after ascer- mance, health, or mental and emotional taining he/she has no ways to commit well-being. such harm. EAPs generally offer free and confi- dential assessments, short-term counsel- Evaluation by Experts ing, referrals, and follow-up services for At a hospital, experts can determine employees. whether the individual needs to be placed on a three-day hold, which describes a Wellness Check Dana Leisinger HR Adviser medical stay at the hospital or a psychiat- When an employee has expressed ric facility in which the person’s mental threats of suicide, be it to his/her state is evaluated. employer/fellow employees or on social I have an employee who has threatened to Clinical psychologists or psychia- media, then doesn’t come in to work, commit suicide. We are very concerned. trists make determinations about the another option is a police wellness check. What should we do, and do we have any nature of the person’s mental illness and A wellness check is an in-person call obligations? the ability of the individual to function from local law enforcement to someone These are chaotic times and this ques- independently. whose behavior has become suspicious in tion is occurring far too frequently. There some way. Usually requested by a friend are no laws directing employers on how Suicide Prevention Helpline or family member, the service is available to handle such a situation. Another possibility is to provide the to everyone and is something that cops However, if you have an intense situ- employee with a suicide prevention tele- take seriously. An employer often is in a ation where it appears the employee is phone number. position to make such a request. about to commit harm to him/herself, you The National Suicide Prevention During the tumultuous year 2020 should call 911 immediately. Helpline number is: (800) 273-8255. It is became, this has become an increasingly a United States-based suicide prevention asked question, and employers are wise network of more than 160 crisis centers to heed the threats. California Chamber Officers that provide 24/7 service, available to anyone in suicidal crisis. Column based on questions asked by callers Mark Jansen on the Labor Law Helpline, a service to Cali- Chair Employee Assistance Program fornia Chamber of Commerce preferred and Donna L. Lucas Many employers provide employees executive members. For expert explanations First Vice Chair with an employee assistance program of labor laws and Cal/OSHA regulations, not (EAP) benefit. The EAP assists employ- legal counsel for specific situations, call (800) Kailesh Karavadra 348-2262 or submit your question at www. Second Vice Chair ees with personal problems and/or work-related problems that have hrcalifornia.com. Gregory S. Bielli Third Vice Chair Grace Evans Cherashore Immediate Past Chair CalChamber-Sponsored Annual Meeting Allan Zaremberg Seminars/Trade Shows In compliance with Article VII of the President and Chief Executive Officer bylaws, notice is hereby given that the More at www.calchamber.com/events. Virtual Annual Meeting of the members Alert (ISSN 0882-0929) is published weekly Labor Law of the California Chamber of Commerce, during legislative session with exceptions by California Family Rights Act: What a mutual benefit corporation operating California Chamber of Commerce, 1215 K Small Businesses Need to Know. Street, Suite 1400, Sacramento, CA 95814- under the laws of the State of California, 3918. Subscription price is $50 paid through CalChamber. , Webinar. will be held on Friday, , 2020, membership dues. (800) 331-8877. at 9 a.m., 1215 K Street, Suite 1400, Send email address changes to alert@ California Family Rights Act: What’s Sacramento, California 95814, for the calchamber.com. Publisher: Allan Zaremberg. New for Large Businesses. CalCham- transaction of whatever business may be Executive Editor: Ann Amioka. Art Director: Neil ber. November 18, Webinar. (800) Ishikawa. Capitol Correspondent: Sara Proffit. necessary. RSVP dave.kilby@calchamber. 331-8877. Permission granted to reprint articles if com or call (916) 444-6670, ext. 202. credit is given to the California Chamber of HR Boot Camp Virtual Seminar. Commerce Alert, citing original publication CalChamber. –11, date of article, and reprint is emailed to Alert Online. (800) 331-8877. at address above. International Trade Email: [email protected]. A Path to Boost International Trade Next Alert: November 20 Home page: www.calchamber.com. between Brazil and California. Brazil See CalChamber-Sponsored: Page 6 WWW.CALCHAMBERALERT.COM

CALIFORNIA CHAMBER OF COMMERCE NOVEMBER 6, 2020 • PAGE 3

The Workplace New Guidance on COVID-19 Notices Law In Episode 95 “outbreak” threshold of three or more “[AB 685] does not take effect until of The Work- positive cases within a 14-day period. 1; however, that will be here very place podcast, CDPH’s “Employer Guidance on quickly,” so it’s important that employers, CalChamber AB 685: Definitions” clarifies that an especially employers with a larger work- Executive Vice “outbreak” under AB 685 is when there force, plan ahead by putting someone or President and have been at least three COVID-19- a department in charge of following all General Counsel positive cases among workers at the these compliance mandates, she says. Erika Frank and same non-health care worksite within a CalChamber 14-day period. The document also clari- Online Resources policy advocate Robert Moutrie discuss fies that a “lab-confirmed test” must be a Frank recommends that employers the 16 guidance issued by the “live virus test” and not an antibody test. visit the CDPH website, www.cdph. California Department of Public Health The Definitions guidance document ca.gov for more information on AB 685 (CDPH) on AB 685, California’s new does not address all the CalChamber as the agency has a variety of helpful COVID-19 workplace exposure reporting concerns with AB 685. Most notably, documents that are easy to understand. law. it does not clarify what three groups The website also has a page that AB 685 (Reyes; D-San Bernardino), of employees must receive notice of specifically deals with guidance docu- among other requirements, mandates that COVID-19 exposure, Moutrie points out. ments and is organized by industry, employers give employees and public The second guidance document, Moutrie adds. health agencies notice of COVID-19 “Employer Questions about AB 685,” Another helpful resource, he says, is exposures that happen at the workplace. gives broad background information the “COVID-19 Employer Playbook.” Although the law goes into effect on on AB 685, he says, and answers ques- The playbook includes case studies, tips, , 2021, the latest CDPH guid- tions such as “What is AB 685?” and and breaks down the requirements of AB ance states that the obligation to report “What information am I required to give 685. exposures is already in effect. workers?” A resource page with a list of rele- The new law was explained One important piece of information vant articles and links to government in a previous Workplace podcast, given by this second document is that resources is available on the CalChamber “COVID-19: New Exposure Notice although AB 685 takes effect on January website at www.calchamber.com/ Requirements Coming,” which 1, 2021, the requirement that employers coronavirus. appeared in the Alert. To notify local health departments if there listen to that podcast, visit: https:// are three or more cases of COVID-19 in advocacy.calchamber.com/2020/10/14/ their workplace within a two-week period covid-19-new-exposure-notice-reqs/. is already in effect, so employers must follow it now, Moutrie stresses. Trends in California Guidance Documents Frank points out that some employers The CDPH issued two new guidance have remarked that they have not been Legislative Races documents on AB 685 on October 16: able to get a hold of their local health From Page 1 • Employer Guidance on AB 685: department. In the event that an employer Less rosy for Republicans is in the Definitions; and has to report an outbreak to their local Senate and the apparent loss of two seats: • Employer Questions about AB 685, health agency (which is required under Ling Ling Chang (SD 29) and John California’s New COVID-19 Law. AB 685) and is unable to reach the Moorlach (SD 37). Too close to call are The first document above clarifies the agency, the employer should at the very Republicans Scott Wilk (SD 21) and definition of key terms in AB 685, some least document the attempt they made to Rosilicie Ochoa Bogh (SD 23), running of which were vague and problematic for contact the agency, she says. in an open GOP seat. employers, Moutrie tells Frank. A common question employers ask Competitive Senate runoffs featuring For example, what constitutes an is whether these guidance documents two Democrats favor incumbent Scott “outbreak” is not clearly defined within are enforceable. Moutrie confirms that Wiener (SD 11) and Dave Cortese (SD the text of AB 685. the guidance documents are enforceable 15), an open seat. Employers who deal directly with and so employers need to move toward All other Senate and Assembly incum- the public were left wondering whether setting up their reporting process as bents from both parties on Tuesday’s COVID-19-positive customers who visit quickly as they can. ballot easily cruised to victory. their business would trigger AB 685’s Frank agrees. Staff Contact: Martin R. Wilson WWW.CALCHAMBERALERT.COM

CALIFORNIA CHAMBER OF COMMERCE NOVEMBER 6, 2020 • PAGE 4

CalChamber November 18 Webinars Break Down New California Family Rights Act Expansion Requirements Big changes threshold that previously applied to 50 or under the CFRA’s newest requirements. are coming more employees. The topics covered in this webinar will to the Cali- In the “California Family Rights Act– include: fornia Family What Small Businesses Need to Know,” • Basic overview of CFRA and FMLA Rights Act CalChamber employment law experts coverage and employee eligibility; Compliance (CFRA) in will discuss how small businesses should • Expanded qualifying reasons for the new year prepare for CFRA’s sweeping changes CFRA leave; and all California businesses will need to and will cover: • Practical scenarios examining when prepare for these changes. To break down • Employee eligibility for CFRA and how the CFRA and FMLA will no everything you need to know to help your leave; longer run concurrently due to changes in company be ready on January 1, the Cali- • Qualifying reasons for CFRA leave; CFRA leave; fornia Chamber of Commerce is holding • Amount of leave available under the • Notice and documentation two webinars: CFRA; requirements; • California Family Rights Act– • Notice and documentation • Pay and benefits while on CFRA What Small Businesses Need to Know: requirements; and/or FMLA leave; and November 18, 2020, 9 a.m. to 10:30 a.m. • Pay and benefits while on CFRA • Best practices. (Pacific Time); and leave; and • California Family Rights Act– • Best practices. Register Today What’s New for Large Businesses: To register for a webinar, visit November 18, 2020, 11 a.m. to 12:30 What’s New for Large https://store.calchamber.com/training/ p.m. (Pacific Time). Businesses live-webinars. While SB 1383 drastically affects These webinars are ideal for HR What Small Businesses Need to smaller businesses previously not subject professionals, office managers, business Know to the CFRA’s 12-week provision of owners or anyone responsible for hiring On 19, 2020, Governor protected leave, employers with 50 or and staffing. Gavin Newsom signed SB 1383, a new more employees already covered by During the webinars, attendees will family and medical leave law that signifi- the CFRA and the federal Family and be able to submit questions and down- cantly expands the California Family Medical Leave Act (FMLA) will need load webinar slides. After the webinar Rights Act (CFRA). to get up to speed on how the two laws concludes, a recording of the live event Notably, this law extends coverage of interact and where they diverge. also will be made available to attendees. the 12-week job-protected leave provi- Join CalChamber’s employment Webinars are mobile-optimized for sion of the CFRA to include all employ- law experts for a detailed discussion on viewing on tablets and smartphones. ers with five or more employees—a complying with and managing leaves

CalChamber to Offer Post-Election Webinar From Page 1 covering topics ranging from the ballot Thank You to the Major Analytics, will present their findings live measures to legislative and congressional Sponsors of This Webinar from Washington D.C. races. The second panel will feature election The brief presentations for both webi- experts providing a review of the 2020 nar segments will leave ample time for elections. The panelists will be Christy presenters to answer audience questions. Wilson, Wilson Public Affairs; Andrew The webinar is for CalChamber Acosta, Acosta Consulting; Bob Giroux, members only. If you are a member Lang, Hansen, Giroux & Associates; interested in participating, please contact and Ned Wigglesworth, Spectrum [email protected]. Campaigns. Major sponsors of the event are The panelists will come equipped Charter Communications and Southern with their pundit briefing books and will California Edison. be prepared to talk about the winners Staff Contact: Martin R. Wilson and losers from this past election season, WWW.CALCHAMBERALERT.COM

CALIFORNIA CHAMBER OF COMMERCE NOVEMBER 6, 2020 • PAGE 5

CalChamber Pursues Dual Paths to Provide Relief on Prop. 65 Acrylamide Warnings Despite disruptions court’s procedural and technical concerns developments under Prop. 65 for the caused by a global with the original complaint. business community. Yet, it is import- pandemic, the • 27, 2020. CalChamber won ant to understand the difference in relief number of a major victory in August when Chief offered and to remind folks that the two 60-day notices District Judge Kimberly J. Mueller pathways are complementary. filed pursuant denied the Attorney General’s motion Should OEHHA adopt its proposed to Proposition to dismiss the case and the motion for rulemaking to add Section 25505, it 65 against food attorney fees by intervener Council would set up a new regulatory framework companies alleging for Education and Research on Toxics providing that Prop. 65-listed chemicals exposure to acrylamide continues its (CERT). Accordingly, the case proceeds. formed by cooking or heat processing exponential growth in 2020. • , 2020. CalChamber filed foods would not represent an exposure if From only three 60-day notices in its preliminary injunction requesting that concentrations are reduced to the lowest 2015 to more than 200 notices in 2019, the Court prohibit the Attorney General level currently feasible. these lawsuits are costing food companies and all private enforcers from filing and It would also set up safe harbor levels tens of millions of dollars every year in prosecuting any new lawsuits to enforce for acrylamide in a limited enumer- settlements and attorney fees. the Prop. 65 warning requirement for ated list of food products. The proposed With attention being pulled in a cancer as applied to acrylamide in food thresholds for certain food groups listed million different directions this year, and beverage products. would be based on negotiated settlement readers may have missed two posi- agreements. tive Prop. 65 developments where the OEHHA Rulemaking Accordingly, companies would still California Chamber of Commerce is • , 2020. The Office be required to comply with Prop. 65 with taking the lead. Below is a recap. of Environmental Health Hazard respect to food and beverage products Assessment (OEHHA) proposed containing Prop. 65-listed chemicals First Amendment Lawsuit rulemaking to create a new regulatory formed by cooking or heating, but could • , 2019. CalChamber filed framework that has the potential to better defend against bounty hunters if its lawsuit last year against the California provide meaningful guidance to food the companies can show concentration Attorney General, seeking to stop the companies. Under the proposed frame- levels of these chemicals are reduced to Attorney General and private enforc- work, Prop. 65-listed chemicals formed the lowest levels currently feasible for ers from requiring businesses selling by cooking or heat processing foods that product. food products in California from having would not represent an exposure if The CalChamber lawsuit, on the other to provide a Prop. 65 cancer warning concentrations are reduced to the lowest hand, seeks to stop all future actions by because of the presence of acrylamide level currently feasible. The regulation the Attorney General and any private that is created from cooking or heat would also establish maximum concen- enforcers to enforce Prop. 65 warnings processing. The intent of the lawsuit is tration levels for acrylamide in certain with regard to acrylamide in food and to protect businesses selling food into foods deemed to be the lowest levels beverage products. California from having to provide false currently feasible based on negotiated Should CalChamber’s lawsuit and misleading Prop. 65 cancer warn- settlement agreements. succeed, companies selling food or bever- ings to California consumers when the • , 2020. The CalChamber age products into California would no state agency has no credible scientific co-led coalition of 35 business orga- longer be required to provide a Prop. 65 evidence to support the requirement. nizations submitted a letter supporting warning for the presence of acrylamide, Notably, the government bears the burden the proposed regulatory framework and and neither the Attorney General nor to show that a compelled disclosure (a providing suggested changes to improve it. private enforcers could sue companies for Prop. 65 warning for acrylamide in food not warning on this basis. products) is permissible under the First How Efforts Help Companies This article first appeared as a Amendment. Both the proposed regulations and Capitol Insider blog post. • 16, 2020. CalChamber filed the CalChamber lawsuit pertain to acryl- Staff Contact: Adam Regele its amended complaint to address the amide in food products and are positive

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CALIFORNIA CHAMBER OF COMMERCE NOVEMBER 6, 2020 • PAGE 6

COVID-19 Update: State Cuts Ribbon on New Test Lab A new laboratory ties of color, who are at higher risk of so the state can continue to limit the in is contracting COVID-19. spread of the virus. expected to give The lab, built ahead of schedule, will The updated Blueprint for a Safer California the begin processing tests this month. Economy shows that as of : ability to process The additional capacity comes just as • 10 of the 58 California counties more COVID-19 flu season arrives and the need for testing remain in Tier 1 (purple/widespread virus tests each day is expected to spike statewide because presence—more than 7 daily new cases with faster turn-around times. the symptoms of COVID-19 and flu are per 100,000 people; more than 8% posi- Governor Gavin Newsom cut the similar. tive tests). ribbon on the new laboratory on October The Governor’s office reports the • 20 are in Tier 2 (red/substantial 30, then toured the $25 million facility facility has created 300 new jobs in virus presence—4–7 daily new cases per with Dr. Mark Ghaly, secretary of the Southern California and will employ 700 100,000 people; 5%–8% positive tests; California Health and Human Services people when operating at full capacity. 5.3%–8% positive tests in health equity Agency, and Government Operations In addition, the state worked with quartile). Secretary Yolanda Richardson. Color, a Burlingame-based health tech- • 19 are in Tier 3 (orange/moderate nology company, to create a user-friendly virus presence—1–3.9 daily new cases Private-Public Partnership front-end interface for the expanded test- per 100,000 people; 2%–4.9% positive The laboratory is a private-public ing program. tests; 2.2%–5.2% health equity quartile partnership, built in conjunction with positive tests). diagnostics company PerkinElmer. When State COVID-19 Cases • 9 counties—including San operating at full capacity by March 2021, In this week’s briefing, delayed to Francisco—are in Tier 4 (yellow/minimal the lab will process an additional 150,000 November 4 due to the election, Dr. virus presence—less than 1 new daily COVID-19 tests a day. Ghaly commented that California is case per 100,000 people; less than 2% The PerkinElmer contract requires test seeing an uptick in cases, although positive tests; and less than 2.2% health results to be turned around in 24–48 hours, Californians’ adherence to state guide- equity quartile positive tests. according to the Governor’s office. The lines is keeping the rate of positive tests Readers can delve into the statistics timing is critical to allowing for timely below that of the nation. California’s behind the assignment of counties to contact tracing, quarantine and isolation. 14-day positivity rate and 7-day positivity different tiers by visiting the California The added testing capacity, the rate was 3.3%, compared to a U.S. 7-day Department of Public Health (CDPH) Governor’s news release noted, will positivity rate of 6.7%. county monitoring overview page at enable the state to better serve schools, He acknowledged that “pandemic https://www.cdph.ca.gov/Programs/ health care providers and hard-to-reach fatigue” is making Californians CID/DCDC/Pages/COVID-19/ communities like essential workers, those exhausted, fatigued and impatient, but COVID19CountyMonitoringOverview. in congregate settings and communi- encouraged listeners to “stay the course” aspx.

CalChamber-Sponsored Seminars/Trade Shows From Page 2 Smart City Expo World Congress. Cyber Security Business Development California Chamber of Commerce, November 17–19, Live Virtual Mission to India. U.S. Department International Trade & Logistics Program. +34 93 233 20 00. of Commerce, International Trade Committee. and Novem- California-Colombia Trade and Invest- Administration. 19–23, 2021, ber 11, Webinar. (310) 598-7502. ment Week. Governor’s Office of New Delhi, Mumbai, optional stops Indonesia’s First and Biggest Virtual Economic and Business Development in Bangalore or Hyderabad. (303) Exhibition. Consulate General of (GO-Biz) and AmCham Colombia. 844-5655; (202) 482-3773. Indonesia. November 10–16, Online. November 17–19, Webinar. (279) 2021 SelectUSA Investment Summit. (628) 209-9207. 666-9107. International Trade Administration. Trade Mission: Business Opportunities Cyber Security Trade Mission to 6–9, 2021. Washington, D.C. in the Caribbean. U.S. Commercial South America. U.S. Department of (800) 424-5249. Service. –20, Caribbean. Commerce, International Trade Admin- 12th World Chambers Congress. Interna- (800) 872-8723. istration. –5, 2021 and March tional Chamber of Commerce World Taiwan Halal Online Trade Mission 8, 2021, Peru, Chile, Uruguay, Argen- Chambers Federation and Dubai to Southeast Asia. Taiwan External tina (optional stop). Applications due Chamber of Commerce & Industry. Trade Development Council. Through , 2020. (410 962-4539; –25, 2021. Dubai, , Online. (202) 482-3773; (703) 235-0102. United Arab Emirates. worldchamber- International Market Research Webinar. Taiwan Trade Show 2021. Taiwan [email protected]. U.S. Commercial Service. November External Trade Development Council. 17 and , Webinar. (800) March 1–October 30, 2021, Taiwan. 872-8723. (886) 2-2725-5200. WWW.CALCHAMBERALERT.COM

CALIFORNIA CHAMBER OF COMMERCE NOVEMBER 6, 2020 • PAGE 7

A View from the Republic of Korea Economic/Cultural Vitality Provides Base for More Growth in Win-Win Partnership The follow- million) and aerospace products and parts Also, there are 20 friendship state ing answers ($670 million). Through these exports, relations, such as Gyeonggido-California to questions 66,098 direct and indirect jobs were State and Chungcheongnamdo-California posed by the created in California. State. California Korea has been investing more Considering the importance of Silicon Chamber of than $2.3 billion for the last 15 years Valley, vitality of the Korean economy Commerce in California, and this investment has and culture, and potential of the young are from Consul General Joon-yong been creating more than 8,000 jobs in generations of Koreans and Korean Park, Consulate General of the Republic the state. Here in the San Francisco Bay Americans living in California, I believe of Korea in San Francisco. Area, internationally renowned cities that there is much room for future devel- and corporations maintain vibrant inter- opment in relations between Korea and Korea-California Relations California in the coming years. Please describe your thoughts on the unique relationship between the Republic Economic Impact of COVID-19 of Korea and California. As countries all over the world feel the Relations between Korea and pandemic, what is the economic impact of California have been developing in many COVID-19 on the Republic of Korea? fields for a century. Recently, it was reported in the Historically, in the late 19th and Financial Times that in the three months the early 20th century, San Francisco, to the end of September, South Korea’s California was the gateway for Koreans economy grew 1.9% from the second entering the mainland of the United quarter because of its success in dealing States. The area became the hub for with the COVID-19 situation, and it is the patriotic Korean nationals for the optimistically expected that the Korean Korean independence movement against economy will recover pre-pandemic Japanese colonialism. status in the first six months of next year. During the Korean War (1950–1953), The mass testing capability and the Fort Mason was the primary port of speedy contact tracing system were the embarkation for deployed members of key factors that made Korea’s pandemic the American military service. Therefore, response successful and gained recogni- it is not a coincidence that the Korean tion from the international community. Consulate in San Francisco was estab- Unlike many other developed countries, Consul General Joon-yong Park, Consulate General of lished in 1949 and upgraded to the first the Republic of Korea the industries and corporations in Korea Consulate General of the Republic of could maintain nearly normal operating Korea in the United States in 1950. actions with their Korean counterparts. conditions due to the successful control The number of Koreans and Korean Among those, the City of San Jose in of the pandemic. Americans living in California is the the Silicon Valley boasts the third largest According to the Organisation biggest in comparison with other states. population of Koreans in California and for Economic Co-operation and According to statistics published in 2019, is the cradle of state-of-the-art innovative Development (OECD) Economic more than 750,000 Koreans and Korean technologies. Surveys: Korea 2020, Korea’s economic Americans are estimated to live in The 72 Korean corporations having growth rate would be -0.8% (if there is no California, while the number of Koreans branches in Silicon Valley include second wave) or -2% (if there is a second living in the State of New York is about Samsung LG, SK, and Hyundai, and wave), which will be the best among the 200,000. numerous Korean venture companies also OECD countries. Total exports from California to Korea pursue their future course of development However, in the face of the COVID- are $11.98 billion, which is 11% of the in the Silicon Valley. 19 pandemic, the Korean economy is state’s exports to Asia, and 4% of the Reflecting the importance of relations facing two great challenges: how to state’s exports globally. The exports are between California and Korea, there recover from an economic slowdown composed of $8.01 billion of goods, and are 30 sister city relationships between and proceed with the structural transfor- $3.97 billion of services. cities in Korea and California, such as mation. Furthermore, the International The majority of exports are indus- Seoul Metropolitan City-San Francisco, Monetary Fund (IMF) forecasts the trial machinery ($1.51 billion), travel Yongsan Municipal-Sacramento, Jeju current crisis will unevenly affect socially ($1.01 billion), industrial processes ($786 City-Santa Rosa. See Economic/Cultural: Page 8 WWW.CALCHAMBERALERT.COM

CALIFORNIA CHAMBER OF COMMERCE NOVEMBER 6, 2020 • PAGE 8

Economic/Cultural Vitality Provides Base for More Growth From Page 7 to lead the global community in the post- country in the Korean import market. In or economically more vulnerable groups. COVID-19 era. 2019, the U.S. share of the Korean import Failing to address the crisis early may This plan forms the institutional basis market was 12.3%, an increase of 1.3% lead to increasing unemployment, shrink- that will sustain the digital and green from the previous year. The KORUS ing investments, and ultimately may have economy. At the same time, it also aims FTA has improved market access for a bigger and longer-lasting impact on the to establish a universal employment U.S. companies and products in a diverse economy. insurance system and sets a path toward range of fields and has helped enhance Against such a backdrop, the Korean net-zero emissions. bilateral trade, lowered prices of goods, government recently announced the increased consumer selection and created Korean New Deal as a national-level U.S.-Korea Free Trade Agreement quality jobs for the last eight years. development strategy to facilitate the What does the U.S.-Republic of Korea The KORUS FTA does not only find country’s recovery from the pandem- Free Trade Agreement mean for the its meaning in trade and investment at the ic-driven crisis and lead the global action Republic of Korea? moment, but also serves as an important against structural changes. First of all, I want to emphasize foundation for strengthening cooperation The three main objectives are as that the free trade agreement (FTA) is a in the areas of digital transformation, follows: mutually beneficial economic agreement next-generation R&D, and start-up incu- • First, minimizing the economic between Korea and the United States. It bation to achieve world-class industrial shock by creating jobs. It creates, not has delivered practical economic benefits competitiveness and develop a mutually only government-supported jobs for and greater growth for both countries. prosperous future. low-skilled workers, but also jobs that The Korea-U.S. Free Trade The KORUS FTA proved to be a support its structural transition to a digital Agreement (KORUS FTA) was symbol of the win-win partnership and green economy. concluded through extensive negotia- between our two countries and a platform • Second, supporting the Korean econ- tions, striking a fair balance of interests. for further growth. I hope the mutually omy’s quick return to its normal growth The KORUS FTA entered into force on beneficial and future-oriented partnership path by building the infrastructure neces- , 2012. between Korea and the United States and sary for a digital and green economy that As of 2019, the eighth year of the this partnership based on the FTA will will rejuvenate investments and support announcement of the KORUS FTA, the serve as part of the basis of the ever-con- job creation. trade volume between the two countries solidating alliance between the two • Third, setting the groundwork for the reached $135.2 billion, a 2.7% increase countries. country not only to adapt to the structural from the previous year. Staff Contact: Susanne T. Stirling changes caused by the pandemic, but also The United States is the second largest

CalChamber Keeps You Posted

Mandatory Updates to Required Notices for January 1, 2021

Will you be ready to post and hand out updated employment notices starting January 1? Now’s the time to preorder your California and Federal Labor Law posters and pamphlets, California Wage Order posters, as well as applicable California city and county posters and select out-of-state posters.

Your 2021 products will ship in mid-December. Preferred and Executive members receive their 20 percent member discount.

PREORDER at calchamber.com/required2021 or call (800) 331-8877.