California is known for many things: its beautiful weather and diverse landscape, its various industry hubs from tech to entertainment to agriculture, In-N-Out… But in the manufacturing sector, California is known for its robust regulatory environment, which can present significant challenges for manufacturing businesses. From taxes to employment law and safety compliance, manufacturers must stay vigilant and informed to remain competitive and compliant.
That’s where SoCal NTMA steps in, providing essential support and advocacy to help navigate these complexities. In this blog, we will explore the key regulations impacting California manufacturers before diving into how SoCal NTMA aids in managing them.
Key Regulations That Impact California Manufacturers
Taxes
California’s tax landscape is one of the most complex in the country. Businesses must contend with high state income taxes, sales taxes, and various local taxes that can impact their bottom line. These tax obligations require meticulous planning and management to ensure compliance and minimize financial burden.
Employment Law
Employment law in California can present challenges for employers. Businesses that fail to meet compliance measures can be subject to legal fees or increased insurance premiums, which can add to operational costs. Staying updated on the latest employment laws and ensuring compliance is critical to mitigating these risks.
New legislation brought forth by Governor Newsom, AB 2288 and SB 92, have reformed the Private Attorneys General Act (PAGA). Here are some of the latest updates:
- Courts can now limit the PAGA claims and evidence brought forth to ensure cases are handled more fairly.
- Employees must have personally experienced the labor law violations to sue under PAGA.
- There will be a new penalty structure for employers.
- Employees can seek injunctive relief.
- Employers can cure more labor law violations so they have a greater chance of correcting issues early on to avoid going to court.
OSHA Compliance
The Occupational Safety and Health Administration (OSHA) and Cal/OSHA (its California counterpart) set strict standards for workplace safety. In the Golden State, local costs related to OSHA compliance can be substantial, covering everything from equipment and training to inspections and fines. Ensuring that all safety protocols are up to date and effectively implemented is essential for avoiding costly penalties.
You’ve likely heard of Cal/OSHA’s June 2024 vote that adopted a new regulation pertaining to heat protocols at indoor places of employment. This law, which may be implemented as early as August 1, 2024, requires the following:
- Indoor heat illness training
- Trigger points of 82°F and 87°F
- Access to water and cool-down areas
- Specific acclimatization protocols
- Emergency response concerns
How SoCal NTMA Helps
SoCal NTMA offers a comprehensive support system to guide manufacturing professionals through these regulatory challenges. Here are some of the primary ways we assist our members:
Advocacy and Political Representation
On the national level, NTMA has a dedicated team of advocates in Washington, D.C., lobbying on behalf of manufacturing business owners. This ensures that the best interests of our members are represented in policy discussions and legislative processes.
On the state and local level, SoCal NTMA actively engages with local politicians and participates in lobbying efforts to influence policy decisions that impact the manufacturing sector. By working together and sharing our experiences, we can develop proactive strategies to prevent regulatory issues and promote a favorable business environment.
Legal Updates and Resources
SoCal NTMA offers quarterly updates through one of our members, an experienced attorney who specializes in employment law. This resource helps members stay informed about the latest legal developments to proactively address potential legal issues before they escalate.
Information and Grant Assistance
SoCal NTMA helps members access valuable information about grants and policies that can benefit their businesses.
One example of a program that has significantly benefited some of our members is the California Competes Tax Credit, which offers over $180 million in tax credits to businesses that meet specific criteria, including number of full-time jobs created, overall economic impact, strategic importance to the region, and more. A handful of our members have successfully leveraged this program to reduce their tax burden and invest in growth initiatives.
Leverage Your SoCal NTMA Community
There are plenty of reasons to become a SoCal NTMA member, and one significant value-add is our extensive network of service providers and industry experts. Our manufacturing community is comprised of trusted sources that can address a wide range of industry-specific challenges.
Expert Support Across Disciplines
Our network includes multiple insurance providers, attorneys specializing in labor laws, financial institutions, and tax and wealth management experts. This diverse expertise means that our members can find the support they need, no matter their specific issue.
Peer Collaboration
Engaging with other manufacturers in the SoCal NTMA community allows for thought-provoking problem-solving and the sharing of best practices. This peer-to-peer interaction fosters a sense of solidarity and collective growth, making it easier to navigate the complex regulatory landscape.
Navigating our state’s regulatory landscape can be daunting for any manufacturer. However, with the support of SoCal NTMA, manufacturers can stay informed, compliant, and competitive. By leveraging the collective knowledge and support of the SoCal NTMA community, businesses can effectively manage regulatory challenges and focus on growth and innovation.
To leverage your membership, attend an event to connect with your manufacturing network or contact us to learn more about how SoCal NTMA supports our members.
