NFIB California Main Street Minute, June 3-7

From your small-business-advocacy team in Sacramento

Welcome to the June 3-7 NFIB California Main Street Minute from your small-business-advocacy team in Sacramento.

Legislative Update

• Last week’s Main Street Minute reported on the passing of an important deadline in the legislative life of bills—their advance, or failure to pass, from their house of origin (Assembly or Senate) into the other house.

• NFIB California has narrowed to 33 the good and bad measures for increased lobbying intensity. We’re asking members to be on the lookout for Action Alerts sent your way asking you to contact senators and assembly members about a particular bill.

• This being California, the bad-for-small-business bills far outnumber the good ones, 25 to 8. Nine of the worst, with the rest a close second, are:

— AB 518 (Wicks) — This bill would expand eligibility for benefits under the paid family leave program to include individuals who take time off work to care for a seriously ill individual related by blood or whose association with the employee is the equivalent of a family relationship. [This measure passed its house of origin last year but is still alive]

— AB 1516 (Kalra) — This bill would require the Labor and Workforce Development Agency to convene a working group to study and evaluate topics related to the minimum wage in California. The bill would require the working group to submit to the Legislature, on or before July 1, 2024, a report that outlines recommendations for raising the minimum wage for all workers in California.

— AB 2288 (Kalra) — This bill would additionally authorize the award of injunctive or declaratory relief in PAGA cases. More information can be read in a letter of opposition sent to the author by a coalition of business groups NFIB is part of.

— AB 2421 (Low)  — Would effectively create a new privilege between an employee and any person who represents the employee and could apply in workplace investigations, administrative proceedings, and civil litigation, among other situations. More information in a letter of opposition from a coalition NFIB is part of.

— AB 2754 (Rendon) — As drafted, AB 2754 instead implicates nearly every customer and transportation service provider in the supply chain as jointly liable for payment of wages, worker’s compensation and reimbursement of business expenses where a worker receives, picks up, or delivers freight at the shipper or consignee’s premises, facility or worksite. More information can be read in a letter of opposition sent to the author by a coalition of business groups NFIB is part of.

— SB 227 (Durazo) — This bill would establish, until January 1, 2027, the Excluded Workers Program, to be administered by the Employment Development Department upon appropriation by the Legislature, for the purpose of providing income assistance to excluded workers [undocumented employees] who are ineligible for the existing state or federal benefits administered by the department and who are unemployed.

— SB 399 (Wahab) — This bill, except as specified, would prohibit an employer from requiring its employees to attend an employer-sponsored meeting or participate in any communications with the employer or its agents or representatives, the purpose of which is to communicate the employer’s opinion about religious matters, political matters, or certain rights guaranteed by the United States Constitution and California Constitution, as defined. NFIB and its coalition’s letter of opposition can be read here.

— SB 988 (Wiener) — This bill would impose minimum requirements, commencing January 1, 2025, relating to contracts between a hiring party and a freelance worker, defined as a person, as specified, that is hired or retained as an independent contractor by a hiring party to provide professional services in exchange for an amount equal to or greater than $250.

— SB 1116 (Portantino) — This bill would restore eligibility for unemployment benefits after the first two weeks for an employee who left work because of a trade dispute. NFIB is part of a coalition with 110 other business associations that sent a joint letter of opposition to the author. More information can be read in a letter of opposition by a coalition of business groups NFIB is part of.

• Future Main Street Minutes will highlight other bills, including the good ones, as the 2023-2024 session of the California State Legislature draws to a close—and not a moment too soon.

NFIB California in the News

• The Center Square quotes State Director John Kabateck for two separate stories that also ran in the media that subscribe to its service, including the Washington Examiner.

• In one story about the Legislature passing a ban on plastic shopping bags, Kabateck tells the online news publication, “There is no question that we all strive for cleaner, greener, and healthier communities, but we must do so in a way that does not have affordability or accessibility consequences, especially for low-income, struggling families, seniors, and disadvantaged communities, often of color. The alternative is to do no harm: stop imposing unnecessary, unrealistic bans that are not backed by science or lack alternatives that already struggling Californians are equipped to accommodate.”

• In the other Center Square Story about the new minimum wage for some health-care workers, Kabateck points out, “California recently adopted a $20 per hour minimum wage for the fast-food sector, a move that small businesses say effectively creates a new minimum wage for them as well given that they are in competition with fast food companies for the same pool of minimum wage workers. The $23 per hour, and ultimately $25 per hour, healthcare minimum wage would likely bring up labor costs for small businesses further.”

• A sampling of NFIB California media mentions for the year can be read here.

The Big Dates Ahead

• June 15, midnight, constitutional deadline to pass 2024-2025 state budget
• June 27 deadline for ballot measure to qualify for November. Last day for proponents of a qualified ballot initiative to withdraw it.
• August 31 deadline for bills to have passed Legislature and sent to governor
• September 30 deadline for governor to sign bills into law
• November 5, General Election Day

National

• June 5 Webinar: New Overtime Rule Effective July 1, 2024: What Small Businesses Need to Know. Presented by: Elizabeth Milito, Executive Director, NFIB Small Business Legal Center; Rob Smith, Senior Attorney, NFIB Legal Center; Holly Wade, Executive Director, NFIB Research Center. Begins at noon, ET. Register here.

Highlights from NFIB Legislative Program Manager Caitlin Lanzara’s weekly report

• On May 30, NFIB released Episode 36of the “Small Business Rundown” podcast, featuring U.S. Senator Tommy Tuberville (AL) and U.S. Representative Warren Davidson (OH-08), who are sponsoring legislation that would repeal the Corporate Transparency Act.

— Relatedly, On May 28, NFIB filed a lawsuit against beneficial ownership requirements to challenge the Corporate Transparency Act. Read the press release here.

• On May 29, NFIB sent a press releasein support of legislation that would repeal the Occupational Safety and Health Administration’s (OSHA) final walkaround rule.

• On May 29, Small Business Trendshighlighted NFIB’s list of ways Congress can ease inflation for small businesses

• On May 29, NFIB Principal of Federal Government Relations Josselin Castillo spoke with Politico regarding individual coverage health reimbursement arrangements (ICHRAs).

Next Main Street Minute June 10.