California wants to protect workers from sweltering conditions on the job. But its nightmarish regulatory framework is getting in the way.
The Governor’s office recently fast-tracked new heat regulations from California’s Occupational Safety and Health Standards Board. Compliance will be costly for businesses — both big and small — but the end goal is noble.
Unfortunately, few businesses will be able to afford it. Golden State employers are already crushed financially thanks to the state’s over 1,000-page labor code — not to mention California’s astronomical energy costs.
When you nickel and dime job creators or worse, open them up to frivolous lawsuits like those filed under the state’s broken Private Attorneys General Act, popularly known as PAGA, there’s not much left to go toward improving business practices. As a result, these new requirements will do little to increase safety. Instead, they’ll just put another target on the backs of employers already struggling to navigate the state’s complex labor code.
It’s a bitter reality, and Gov. Gavin Newsom has no one to blame but his own administration.
The regulations require businesses to provide cooling areas for workers when indoor temperatures reach 82 degrees. At 87 degrees, employers must cool the worksite, offer more breaks, rotate schedules, or take other measures.
Many businesses won’t have that kind of cooling equipment on hand — they will have to purchase it. To come close to meeting these standards, many businesses will have to run air conditioners or other devices all day long for a good chunk of the year. Considering California has one of the highest electricity costs in the country — 43% higher than the national average — the cost of staying cool will be passed on to the business.
Business owners with limited resources — even the most well-meaning — could be hard put to bear these costs. California prisons were notably exempt from these new regulations over concerns about the high cost.
The employers that I’ve met and advocated for across the state want to provide employees with comfortable environments in which to work. They also want their business to turn a profit so they can afford to keep these employees on payroll.
Heat protection is important, but it comes at a time when business owners are already strapped. Just consider our state’s skyrocketing minimum wage — now $20 an hour for fast-food restaurants — and the increasing cost of complying with even the most arbitrary rules.
It’s far from the first time the state government has put forth a well-meaning policy with little regard for its consequences. Consider the recent mandates for our trucking industry. In an effort to achieve zero emissions, California now requires all drayage trucks over 26,000 pounds have engines from 2010 or later. By 2035, manufacturers are to make and sell only zero emission (aka electric) drayage trucks.
It’s an absolutely massive ask of trucking companies — many of whom are small businesses — who will have to make a significant investment or close their doors. It will do more to drive these businesses out of state than it will to help the environment. And they’ll take countless jobs with them when they go.
California has seen an exodus of hundreds of businesses in recent years due to unfavorable policies and overly complex labor laws, resulting in the loss of thousands of jobs. It’s not surprising that California now tops the nation in mass layoffs.
Instead of working with businesses to create regulations that actually have a positive impact, California has once again put employers between a rock and a hard place. And workers will be the ones to suffer for it.
Tom Manzo is the president and founder of the California Business and Industrial Alliance.
