Nicole Rice

Problem proposals

By Nicole Rice, Policy Director, Government Relations

Capitol Update, April 7, 2017

Bill amendments continue to flood in as the Legislature takes a week’s break before returning to address the thousands of proposals still pending for policy and fiscal consideration. Among these recently modified measures are two bills that promise to be problematic for manufacturers:

AB 450 (David Chiu, D-San Francisco) will place manufacturers in the precarious position of choosing which governmental rules to follow by demanding employers prohibit federal immigration enforcement agents (i.e. ICE) access to their workplace if they do not present a judicial warrant or face a state civil penalty of up to $25,000 per violation. The bill also, among other provisions, requires employers to notify the state Labor Commissioner within 24 hours of advance notice of a workplace raid or whenever the company conducts a self-review or audit of their I-9 forms. By doing so, the bill grants the Labor Commissioner authority to show up and do a wall-to-wall investigation of your facility.

AB 1565 (Tony Thurmond, D-Richmond) will prematurely increase labor costs for California manufacturers by raising the minimum wage for “white-collar” workers to $47,472 annually. Because the base wage to qualify for exempt executive, administrative, or professional status is tied to the state’s rising minimum wage (at a calculation of two-times the wage), it has already been increasing and now stands at $43,680 per year. This measure will force employers to pay a higher minimum wage to professional employees much sooner than expected. AB 1565 is mirrored after the federal overtime regulation that is under appeal in a Texas court.

CMTA is strongly opposed to both these measures and has identified them as Key Manufacturing Bills – bills that threatens to harm the investment and job growth opportunities for California manufacturers. For more information about these proposals, contact Nicole Rice, Policy Director for Labor & Workforce Development at

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