Opinion: Overregulation costs leave little room for heat protection

California wants to protect workers from workplace heat. But its nightmarish regulatory framework gets in the way.

The governor’s office recently fast-tracked new heating regulations from California’s Occupational Safety and Health Standards Board. Compliance will be costly for businesses — large and small — but the end goal is noble.

Unfortunately, few companies will be able to afford it. Employers in the Golden State are already financially devastated by a 1,000-page labor code — not to mention California’s astronomical energy costs.

When you’re pouring money into a job creator’s pockets or, worse, exposing them to frivolous lawsuits like those filed under the state’s broken attorney general law, popularly known as PAGA, there’s little they can do to improve business practices. As a result, these new requirements will do little to improve safety. Instead, they’ll simply put another target on the backs of employers who already have trouble navigating the state’s complicated labor code.

It’s a bitter reality, and Governor Gavin Newsom has no one to blame but his own administration.

The regulations require companies to provide cooling areas for workers when indoor temperatures reach 82 degrees. At 87 degrees, employers must cool the workplace, offer more breaks, change schedules or take other measures.

Many businesses won’t have this cooling equipment on hand—they’ll have to buy it. To come close to meeting these standards, many businesses will have to run air conditioners or other devices all day long for much of the year. Given that California has some of the highest electricity costs in the country—43% higher than the national average—the cost of keeping things cool will be passed on to businesses.

Business owners with limited resources—even those with the best intentions—may have a hard time bearing these costs. California prisons have been specifically excluded from these new rules because of concerns about the high costs.

The employers I have met and advocated for across the state want to provide a comfortable work environment for their employees. They also want their businesses to be profitable so they can afford to keep those employees on the payroll.

Heat protection is important, but it comes at a time when business owners are already strapped. Just think of our state’s skyrocketing minimum wage — now $20 an hour at fast-food restaurants — and the rising costs of complying with even the most arbitrary rules.

This isn’t the first time a state government has introduced well-intended policy without considering its consequences. Consider the recent mandates for our trucking industry. In order to achieve zero emissions, California now requires all freight trucks over 26,000 pounds to have 2010 or newer engines. By 2035, manufacturers must produce and sell only zero-emission (i.e., electric) freight trucks.

This is an absolutely huge challenge for transportation companies — many of which are small businesses — who will have to make significant investments or close their doors. This will do more to drive these companies out of the state than it will to the environment. And when they go, they will take countless jobs with them.

In recent years, California has seen hundreds of businesses leave due to unfavorable policies and overly complex labor laws, leading to thousands of job losses. It’s no wonder California now leads the nation in mass layoffs.

Instead of working with companies to create regulations that actually have a positive impact, California has once again placed employers between a rock and a hard place. And workers will suffer for it.

Tom Manzo is president and founder of the California Business and Industrial Alliance.