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January 2018 Newsletter
UPCOMING EVENT
CFMA and the National Tooling and Machining Association - LA Chapter (LA/NTMA) invite you to an important  legislative update and networking event.  Speakers Assembly Member Sharon Quirk-Silva and Michael Arnold, Legislative Advocate with Arnold and Associates in Sacramento will discuss:

◆ The state of manufacturing in California;
◆ Bringing back manufacturing jobs in California and AB 600 (Manufacturing/Research & Development Tax Incentive Program);
◆ Current public policy issues affecting manufacturing in California, including Prop 65 
◆ How can members influence the public policy making process in California?
◆ What manufacturers can do to be more proactive? 

February 22, 2018
3:30-5:00 pm- Legislative Updates
5:00 -6:00 pm - Networking
340 W. Commonwealth Ave., Fullerton, CA 92832

INDUSTRY NEWS
Reclassification of Laminated Wood Chairs
Proposed Cancellation of NMFC Item 80550
 
On Tuesday, February 13, the Commodity Classification Standards Board will conduct a public meeting to consider amending the National Motor Freight Classification. The meeting will be held at the Hyatt Regency Newport Beach, 1107 Jamboree Road, Newport Beach at 11:00. To schedule an appearance, or for more information about the meeting, contact Colleen Airgood at airgood@nmfta.org

Companies are Struggling to Respond to Cybersecurity Threats 
 

Companies are correctly focused on cybersecurity risks.  Notwithstanding this focus, companies are struggling with how to respond to threats and risks.  Cybersecurity threats are quickly evolving - akin to the time when countries engaged in military arms races.  As they evolve, companies have to embrace proactive strategies and cannot rely on a compliance strategy that reacts to events and threats.
 
Cyber criminals are quickly embracing new strategies for attacking companies.  In the last few years, cyber professionals have seen a decline in malware attacks.  With the advent of new chip technology and PIN sec
urity measures, cyber criminals have steered away from point of sale (POS) attacks in significant numbers.  In response to the major attack against Target, many retailers have built new security programs to prevent further POS attacks.  Law enforcement and cyber professionals have successfully prevented some of the more serious malware exploit kits (e.g. Neutrino).
 
Further, on the positive side, companies and individual users are increasingly relying on Secure Sockets Layer/Transport Layer Security (SSL/TLS) encrypted traffic as an important protection for online security.  SSL/TLS encrypted traffic has increased by nearly 50 percent over the last few years and thereby improved online security.
 

As the 2018 California Legislative Session commences on January 3, the business community must remain vigilant about those bills that could present new, burdensome changes in state labor and employment laws. The 2017 Session saw a large number of significant labor and employment laws get enacted that impose significant burdens upon employers in California, including expanded parental leave, immigration protections, prior salary history limitations, and criminal background history protections.

Despite the significant law changes enacted just this year, the business community is certain to face more measures that will represent additional, significant financial and legal liability for California employers. More than one hundred new laws in this policy area have been enacted during the past few years.  Labor Code changes or additions are introduced each year of the legislative session and businesses barely have time to implement changes before another set of new laws get enacted. And this does not consider all of the regulatory changes being promulgated by Cal-OSHA, DLSE, and DFEH.

Opinion: California can't afford single-payer health care fantasy

By Sally C. Pipes; San Jose Mercury 

A civil war is brewing within California's Democratic party.  Progressives - led by Lt. Gov. Gavin Newsom, the frontrunner for governor, and the politically powerful California Nurses Association - plan to fight for a single-payer healthcare system this year. Their more moderate rivals - among them Assembly Speaker Anthony Rendon - are pushing back.  Unfortunately, the progressives seem to be winning. Newsom has a 10-point lead over his nearest competitor for the Democratic nomination. If his faction emerges victorious, Californians had better prepare to lose their existing health plans - and pay billions of dollars in new taxes for the privilege.

The California Nurses Association says it will push to revive Senate Bill 562, the Healthy California Act.  Nurses recently rallied outside of the state capitol to urge Rendon to move the bill ahead.  The bill would effectively take away the health coverage that Californians currently have - including Medicare and Medi-Cal - and replace it with a single government-run plan for all residents. The state government would decide which procedures and drugs to cover.  The plan wouldn't charge premiums, deductibles or co-pays - but it would still cost a fortune. According to an analysis by the state Senate's Appropriations Committee, the bill would cost $400 billion a year.


Nominees for the Top 20 California Employment Law Risks

By Davis Wright Tremaine LLP  

New laws pop up in California on a regular basis, as summarized by our  What's New for 2018 advisory. Meanwhile, California employers must also be mindful of the laws already on the books, many of which pose traps for the unwary. Here are our top 20 nominees for the employment legal issues warranting particular vigilance.

1. Use of Staffing Agencies and Joint Employment. Employers in California are directly liable to workers supplied by labor contractors (including temporary and other staffing agencies and farm labor contractors) when those labor contractors fail to correctly and completely pay wages or fail to provide workers' compensation insurance coverage to their employees. Employers using workers from labor contractors are liable to such workers for unpaid wages, even if they have already fully paid the labor contractor.

2. Independent Contractor (1099) v. Employee (W-2) Classification . Misclassification may lead to significant scrutiny by both the California Labor Commissioner and the Employment Development Department. If an employer plans to use more than a few independent contractors on a regular basis, a review of the practice and the particular agreements is a good idea. The ultimate question of classification is a matter of law, and not up to the employer and worker. Review the classifications  here .

CFMA Board of Directors

Pascal Benyamini, Director
Drinker Biddle & Reath, LLP
Chris Burgess, Treasurer 
Arcadia Chair Company 
Brian Edwards, Past President
Alpine Furniture
Burt Grimes, Director 
Pacific West Furniture   
Kurt Haines, Director 
Ashley Furniture
Richard Masters, Director
Andreini & Co.
Ben Neilsen, Director
Cambridge Furniture 
Michael Genrich, Director
Furniture of America
Jon Sanchez, Secretary 
Hanes Industries
Scott Sandberg, President
Sandberg Furniture
Gary Stafford, Director
Terra Furniture 
Richard Cazares, Vice President 
RC Furniture 
Andrea Messina
Executive Director

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