Why are employers saying no to California Compliance Regulations?

According to the Labor Enforcement Task Force Report from 2012-2016, non-compliance has grown from 75% to 91% of the companies targeted.

Now while the sample size is small only about 800 targeted employers the percentages has greatly increased.

Granted these employers are targeted and they are not the bright and shining stars, but the fact remains that in spite of sweeps and increased fines the numbers are still going up.

Moving cross town to the better employers you are also going to find that even good employers are having a hard time keeping compliant.

Reasons Employers are failing to heed compliance regulations

For many employers it is not intentional, from 2012 to 2016 the California Labor Laws and the Cal-OSHA Standards have become much more complex.

  • They think that they are in compliance but their employee handbook is outdated
  • Their iipp or illness injury prevention program is outdated
  • They do safety training but fail to document it
  • They feel that they are under the radar because of their size
  • Many older employers are just not aware how much the times have changed
  • They don’t believe they will get caught

I have been helping employers since 1997, and I can understand some of their thinking.  I can remember that up until the year 2003 I would tell employers that were smaller in size don’t worry about it, even if you should get busted for not being in compliance with the California compliance regulations it is not that big of a deal.  The reality is that you have a better chance of not getting caught than you do getting caught.

Reasons to comply

  • The fines have gone up tremendously.  Cal-OSHA fines can range from $15,000 to $60,000
  • There are more ways for employees to sue you than every before.
  • Enforcement Procedures have changed making the burden of proof on you.
  • Cal-OSHA now requires proof/documentation that you are doing everything your safety program says you will do.
  • California Labor Laws and other compliance regulations have become more and more complex.
  • With all of the new laws, it can honestly be said that every employer no matter how big or small needs a labor law consultant.

While I love helping employers comply with all of the new laws, it is no longer fun.  Don’t get me wrong I am still very passionate about the rights of employers and I am still excited about helping them to get in and stay in compliance but with all of the complexity, it makes it very hard for employers.

Underground Economy Sweeps

With over 90% of employers failing to comply with compliance regulations these sweeps are not going away.  Employers can expect stiffer fines and penalties going forward.  The sweep of 2016 produced a lot more fines than the sweep of 2012.  Add to that is the fact that Cal-OSHA is determined to make employers pay who don’t want to play.

I can tell you this the employers who get caught sure do change their tune as the watch the enforcement officer ask them for things they don’t have or did not think was important. Being in compliance is kind of like having car insurance, you don’t need it until you have had an accident. However, you don’t cancel it because you have not had an accident.

Should you have any questions please give us a call we love questions and we really do enjoy helping employers to protect their rights.  Watching over employers rights, that’s what we do.