VOLUME 42, NUMBER 29 ● SEPTEMBER 23, 2016 Signed Bills Help CalChamber Presents Business on Tax, Handy Ballot Guide Accessibility Issues Governor This edition Below is a recap of CalChamber Edmund G. ® of Alert positions on November ballot measures: Brown Jr. Special Report: includes a SUPPORT recently signed November seven-page Proposition 51: School Bonds two California Ballot Measures special report Proposition 52: State Fees on Hospitals. Federal Chamber of on the Medi-Cal Matching Funds Commerce-sup- November ballot measures, including brief Proposition 54: Legislative Transparency ported bills that summaries of the California Chamber of Proposition 58: English Language Education improve fairness Commerce reasons for its positions on in the tax law OPPOSE seven of the 17 ballot measures. Support administration Proposition 53: Revenue Bonds On propositions where the CalCham- process, and a third bill that will help Proposition 55: Tax Extension on High Wealth ber has no position, the guide summarizes businesses assess whether commercial Individuals arguments for and against the measures rental property complies with disability Proposition 61: Prescription Drug Purchases. Pricing as presented in the 224-page official voter access laws. information guide prepared by the Cali- For more information, see the special • AB 2201 (Brough; R-Dana Point) fornia Secretary of State. report inside. maintains fairness with regard to the computation of interest on a late elec- tronic payment to the Board of Equaliza- tion (BOE) by reinstating the authority of Tourism Promotion, Governing California the BOE to compute interest on a daily Get Closer Look at CalChamber Board Meeting basis instead of a monthly basis if listed circumstances are satisfied. • AB 2476 (Daly; D-Anaheim) ensures that a property owner has suf- ficient time to potentially challenge the parcel tax if necessary by providing notice and information of a parcel tax to a property owner who does not reside within the jurisdiction of the agency or legislative body. • AB 2093 (Steinorth; R-Rancho Cucamonga) ensures that owners and tenants are aware of any construction- See Signed Bills: Page 4 Inside Caroline Beteta (left), president and CEO of Visit California, recaps for listeners at the CalChamber Board of Directors dinner on September 8 the successes of the program to promote tourism within and • November Ballot to the state, including videos spotlighting restaurants and other travel destinations. Watch the videos on Propositions: Pages 7-13 YouTube or at VisitCalifornia.com/dream365tv. Nancy McFadden (right), executive secretary to Governor Edmund G. Brown Jr., explains at the CalChamber Board of Directors meeting on Septem- • Economic Advisory ber 9 that the administration takes “very seriously” the business of governing California. The top priority has been keeping the state on fiscal track, she says, and the job of shaping legislation also Council: Pages 14-15 includes discouraging bad ideas from being turned into bill proposals. SEPTEMBER 23, 2016 ● PAGE 2 CALIFORNIA CHAMBER OF COMMERCE Labor Law Corner Premium Pay Applies Just Once Daily Per Missed Break/Meal Welfare Commission (IWC) wage orders penalties are separate) are missed, only address an employer’s obligation to one meal period premium is imposed provide meal periods and rest breaks. each day. Thus, if an employer employed Labor Code Section 226.7 further an employee for twelve hours in one day addresses the requirement to pay a pre- without any meal period, the penalty mium of one hour at the employee’s would be only one hour at the employee’s regular rate for failure to provide a meal regular rate of pay. period or rest break required by the IWC Section 45.3.7: Rest Periods orders. Premium for Failure to Provide Rest Barbara Wilber HR Adviser A court decision clarified that there is Periods is the same as that imposed for one violation for a missed meal break and failure to provide meal periods. Note that Please explain how the meal and rest one violation for a missed rest break in a only one hour for failure to provide a rest break premiums are paid. When an work day. period may be imposed in each day employer fails to provide two rest breaks In answer to your question, only two regardless of the number of rest periods and two meal breaks in the same day, is hours of premium pay is owed because missed. an employee entitled to four hours of the statute requires payment of the pre- premium pay? mium for each work day, not each occur- More Information No, the employee is entitled to only rence during a work day. For additional information about meal two hours of premium pay. and rest break requirements, visit With a few exceptions, both Labor Division Guidance HRCalifornia.com. Code Section 512 and the Industrial Two separate sections of the Division of Labor Standards Enforcement Policies The Labor Law Helpline is a service to and Interpretations Manual provide California Chamber of Commerce preferred additional guidance on this issue: and executive members. For expert explana- California Chamber Officers Section 45.2.8: Meal Periods tions of labor laws and Cal/OSHA regula- Premium for Missed Meal Period Is tions, not legal counsel for specific situations, Michael W. Murphy call (800) 348-2262 or submit your question Chair Only Imposed Once Each Day. No matter how many meal periods (rest period at www.hrcalifornia.com. Susan Corrales-Diaz First Vice Chair Terry MacRae CalChamber-Sponsored Seminars/Trade Shows Second Vice Chair Grace Evans Cherashore More at www.calchamber.com/events. Trade Center and Global Ties San Third Vice Chair Labor Law Francisco. September 30, Oakland. Leaves of Absence. CalChamber. October (415) 528-3541. Joseph M. Otting 6, Pasadena – SOLD OUT. (800) 2016 Sima-Sipsa International Ag Expo. Immediate Past Chair 331-8877. U.S.-Algeria Business Council. Allan Zaremberg Complying with New Federal, State and October 4–7, Algiers, Algeria. (703) President and Chief Executive Officer Local Overtime and Minimum Wage 418-4150. Rules. CalChamber. October 20, Global Trade Awards Gala. Women in Alert (ISSN 0882-0929) is published weekly Webinar. (800) 331-8877. International Trade—Los Angeles. during legislative session with exceptions by California Chamber of Commerce, 1215 K HR Boot Camp. December 7, San October 6, Long Beach. (213) 545-6479. Street, Suite 1400, Sacramento, CA 95814- Francisco. (800) 331-8877. Fifth Annual U.S.-China Collaboration 3918. Subscription price is $50 paid through Business Resources Delegation. Bay Area Council. membership dues. Periodicals Postage Paid at Air Force Small Business Industry Days. Sacramento, CA. See CalChamber-Sponsored: Page 6 Air Force Space and Missile Systems POSTMASTER: Send address changes to Alert, Center. October 18–20, Los Angeles. 1215 K Street, Suite 1400, Sacramento, CA 95814-3918. Publisher: Allan Zaremberg. (703) 286-0210. Executive Editor: Ann Amioka. Associate Editor: International Trade Sara Espinosa. Art Director: Neil Ishikawa. 2016 Public Forum on “Inclusive Trade.” CalChamber Calendar Capitol Correspondent: Christine Haddon. World Trade Organization. September Permission granted to reprint articles if 27–29, Geneva, Switzerland. Public Affairs Conference: credit is given to the California Chamber of Environmental Law and Free Trade in the November 29–30, Huntington Beach Commerce Alert, and reprint is mailed to Alert at address above. Americas. World Affairs Council of Northern California. September 29, Email: [email protected]. Home page: www.calchamber.com. Sacramento. (415) 293-4601. Diplomacy Begins Here: Northern Next Alert: October 7 California. Northern California World CALIFORNIA CHAMBER OF COMMERCE SEPTEMBER 23, 2016 ● PAGE 3 What California Employers Need to Know About New Federal Overtime Rule The new federal overtime rule, its effects mum monthly salary thresh- on how California employers pay their old in California is two times employees, and how employers can the state minimum wage, prepare for the change are the subject of a which amounts to $41,600 a free white paper available from the year for a full time employee. California Chamber of Commerce. When state and federal In addition, an upcoming CalChamber overtime laws apply, employ- webinar examines the new federal over- ers must follow whichever is time rule, along with state and local more protective of employees. requirements on overtime and minimum What does this new law wage. mean for California employ- Until recently, California employers ers? Do you increase salaries generally were not concerned with fed- or reclassify employees? The question bonuses, commissions and highly com- eral overtime requirements because involves numerous issues, so it’s not a pensated employees applies; California’s duties and salary tests for clear-cut decision. • Steps you can take to prepare; and certain key exemptions were more strin- • Much more. gent than federal requirements. White Paper That changes as of December 1, when What California Employers Need to Upcoming Webinar the federal salary requirement for the Know About the New Federal Overtime On Thursday, October 20, CalCham- administrative, executive and professional Rule is available for CalChamber mem- ber employment law experts will present exemptions will exceed California’s bers on HRCalifornia. Nonmembers can a webinar on Complying with New Fed- salary test. sign up to download the white paper at eral, State and Local Overtime and Mini- The new federal minimum salary calchamber.com/fedovertime. mum Wage Rules. threshold for an employee to be exempt CalChamber’s white paper covers: For more information or to register, from overtime will increase to $913 per • How the new rule affects the federal visit calchamberstore.com. week (amounting to $47,476 annually for salary test; Staff Contact: Gail Cecchettini Whaley a full time employee). The current mini- • Whether the federal rule relating to National Perspective on 2016 Presidential, U.S. Senate Races Eileen Braden, vice president of political affairs for the U.S. Chamber of Commerce, gives the CalChamber Board a rundown on the volatile 2016 presidential campaign and key races in the U.S.