See the enclosed report ( view) as developed by our national partners, the Auto Care Association.

In April, Governor Jerry Brown signed California Senate Bill 3 ("SB 3"), which will gradually raise the State minimum wage to $15 per hour. The State's current minimum wage is $10 per hour. SB 3 provides six annual increases to the current minimum wage for employers with 26 or more employees.

Beginning on January 1, 2017, the minimum wage will increase to $10.50. In 2018, the minimum wage will increase to $11 and then increase by $1 each year until 2022, when the minimum wage will be $15. Employers with 25 or fewer employees will have an additional year to implement each of the increases. In other words, the State minimum wage will not begin to increase for these smaller employers until January 1, 2018.

The Governor may pause scheduled increases based on certain economic conditions. However, the Governor may only pause the scheduled increases a maximum of two times. Once the $15 wage has been reached, the Department of Finance will annually increase the minimum wage for the following year based on statistics from the U.S. Bureau of Labor Statistics.

Many employers will need to significantly adjust their compensation and benefits structures in light of the new law. Of course, the increased minimum wage will affect overtime and double-time. It will also affect exempt employee salaries because exempt employees under California law generally must earn a salary that is at least twice the State's minimum wage for full-time employment.

This means that under the current $10 per hour minimum wage, exempt employees must earn an annual salary of $41,600. Under the $15 per hour minimum wage, the minimum annual salary for exempt employees jumps to $62,400.

Finally, employers should bear in mind that cities and counties may have their own minimum wages that are higher than the State minimum wage (e.g., Berkeley, Emeryville, Los Angeles, Mountain View, Oakland, Palo Alto, Richmond, Sacramento, San Jose, San Francisco, Sunnyvale.) As a result, employers should determine whether another minimum wage applies, and pay their employees according to the higher applicable minimum wage. Source: Wilke Fleury Law Firm

Aftermarket Vehicles (cars and light trucks four years and older) generate over 96% of total car and light truck product and service volume (not including Accessories and Tires), but they comprise a much smaller portion of the total VIO (vehicles in operation). Aftermarket Vehicles currently represent 80% of total cars and light trucks on U.S. roads. With 2016 new vehicle sales blazing at a faster pace than the record-setting 2015 volume, Aftermarket Vehicles will likely comprise an even smaller share of total cars and light trucks at the beginning of 2017. Source: Lang Report 

 

Register ( here) for CAWA's June training session to be held on June 23, 2016 in Long Beach. Presentations include: 

A reception and tour of the All Trade Tools headquarters for CAWA and YANG members will be held after the training session. For more information contact us at programs@cawa.org. Another member benefit!

 

Twelve individuals were awarded scholarships this year and each state was represented by at least one deserving student. For details on the awardees see the enclosed press release ( here). Another member benefit.
 

California employers may not knowingly or intentionally permit the smoking of tobacco products at a place of employment or in an enclosed space. This prohibition includes permitting non-employees to smoke in an enclosed workplace. Legislation signed by the Governor this month will change some of the workplace rules relating to smoking in the workplace and eliminate most of these specific exemptions. The amendments take effect beginning June 9, 2016. See ( here) the new law's explanation provided by our friends at the California Chamber of Commerce.

Recall, too, that CAWA will be holding its annual dinner on the Sunday night (October 30th) before the Shows at Caesar's Palace. Watch for the announcement and registration forms to be sent prior to the Shows. AAPEX registration here. For more information, contact our President & CEO, Rodney Pierini at admin@cawa.org or 800.332.2292, ext. 1.

As expected, the Department of Labor's (DOL) Wage and Hour Division released the final rule governing overtime pay this month. The business community in coalition, including CAWA, lobbied long and hard to persuade DOL that the rule change was too severe. 

For detailed information see here: https://www.dol.gov/whd/overtime/final2016/. Recall, as member, you can receive up to ½ per month of FREE legal consultation on this and other issues affecting your business. See www.cawa.org for the attorney in your state. Another member benefit.

CAWA, the Auto Care Association and the Automotive Service Councils of California will be holding an Industry Summit on June 24, 2016 in Long Beach, California. The purpose of the Summit is to bring the industry together to communicate and discuss issues affecting the industry. Issues to be discussed include telematics, cybersecurity, the recruitment of quality technicians and the "connected" repair shop of the future. See ( here) for details and registration for the event which is FREE. Another member benefit.

The Leadership 2.0 Scholarship covers the full expense of tuition, materials, lodging and meals for the program as described by the University of the Aftermarket at Northwood University. The value of this scholarship is $6,250. The awardee must also be employed by a distributor member of CAWA. See these enclosures ( here and here) for more detailed information and contact Rodney Pierini, CAWA President & CEO with questions.