Employee/Employer Relations Public policies and regulatory climates can either boost or negatively impact the ability of Riverside County businesses to compete locally, nationally, and globally. In considering public policies and regulations impacting the workplace, it is important for decision makers and regulators to be mindful of ramifications their decisions have on business owners striving to remain competitive in the global marketplace. The GCVCC is mindful of the many aspects of labor and how it impacts our business members productivity and ability to compete. We especially are mindful of the following key issues. Compensation Issues Wage and compensation issues have a direct impact on labor costs and therefore impact a business’ overall competitiveness. California enacted policies and regulations that go well beyond federal protections for employees. This places Riverside County businesses at an economic disadvantage when competing nationally and globally with businesses from other states and has the potential to drive businesses to leave California. California minimum wage for businesses with 26 or more employees increases each year until reaching $15 per hour in 2022. Once the minimum wage reaches $15 per hour for all businesses, wages could then increase each year up to 3.5 percent (rounded to the nearest 10 cents) for inflation as measured by the national Consumer Price Index. Taxpayers also are affected because the companies pass on the higher costs to the cities and/or counties with which they have contracts. Chemical and Environmental Exposure Businesses inherently need to ensure that workplaces are healthy and safe for all employees. Businesses must pay a cost impact to comply with these regulatory measures and thus, there is a direct correlation between these types of regulations and a business’ competitiveness. To the extent that California enacts policies and regulations that exceed federal standards for employee protection, Riverside County businesses are at an economic disadvantage compared to those operating in other states. Independent Contractors Independent contractors serve an important role in the economic development of Riverside County by providing expertise, flexibility, quality improvement, and cost savings to all types of businesses. The robust service sector within the Coachella Valley also is home to many Independent Contractors who find this work structure most conducive to their work/life balance. Recent case law and legislation are eroding the cost-effectiveness of independent contractors, making their clients liable for health care, unemployment benefits, workers’ compensation,
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