Nicole Rice

Mandatory retirement savings and new heat illness rules approved by Governor

By Nicole Rice, Policy Director, Government Relations

Capitol Update, Sept. 30, 2016

There has been plenty of action coming from the corner office on the first floor of the Capitol as Governor Jerry Brown works to meet the September 30th deadline to sign or veto legislation. This week, he signed into law two bills that will set precedents in California.

The first is SB 1234 by Senate President pro Tempore Kevin de Leon (D-Los Angeles) that formally approves the implementation of the California Secure Choice Retirement Savings Program, initially established for study in 2012. Secure Choice requires every private sector employer with five or more employees that does not offer a specified type of retirement savings plan to enroll eligible workers into the state’s administered program. The measure was signed on Thursday, September 29th, during an invitation-only ceremony at the Capitol. CMTA originally opposed this bill but worked closely with the author to ensure that employer responsibilities and liabilities would be limited and proportional to their nonexistent level of authority and control over the program.

Click here to review CMTA’s analysis of the program or here to read the Governor’s comments on the measure.

Governor Brown also signed SB 1167 by Senator Tony Mendoza (D-Artesia) directing Cal/OSHA to establish heat illness regulations for indoor workers by July 1, 2019. CMTA opposed this measure as an unnecessary directive given the Division’s ability to explore the creation of such a standard without legislation. And, because of the potential breadth of the legislative mandate, we are equally concerned about the disproportionate negative impact this directive could have on manufacturing due to the inherent nature of our processes that can sometimes expose individuals to varying degrees of temperatures. Click here to read more about our position on the bill.

Even with the Governor’s signature, neither one of these programs is fully implemented. Additional work will be needed through their respective regulatory processes before either proposal can be fully operational. CMTA will continue its engagement during these subsequent discussions to ensure that these policies are workable for manufacturers.

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