Complex state regulations a factor in California's employment struggles
Companies are choosing to grow their businesses in states such as Texas rather than having to face California's complex tax and regulatory issues, according to the Sacramento Bee.
"You can't build in California, you can't manage in California and you have to pay a big tax," Andy Pudzer, CEO of fast food restaurant chain Hardee's, said in an interview with The Wall Street Journal. "In Texas, it's the opposite, which is why we're building 300 new stores there this year."
Unlike most states, California makes general managers subject to overtime salary requirements if they spend at least 50 percent of their time working on non-managerial tasks. In order to avoid overtime lawsuits, salaried general managers' jobs are often converted to hourly positions.
The state's unusual policy of requiring overtime for employees working more than eight hours in a day, rather than more than 40 hours a week, reduces scheduling flexibility, and the complex overtime regulations are often taken advantage of by lawyers who sue companies for minor and often unintentional violations. For example, the rate of overtime is 1.5 times the rate of regular pay after an eight-hour day or 40-hour week, and double time for more than 12 hours worked in a day.
"You can't build in California, you can't manage in California and you have to pay a big tax," Andy Pudzer, CEO of fast food restaurant chain Hardee's, said in an interview with The Wall Street Journal. "In Texas, it's the opposite, which is why we're building 300 new stores there this year."
Unlike most states, California makes general managers subject to overtime salary requirements if they spend at least 50 percent of their time working on non-managerial tasks. In order to avoid overtime lawsuits, salaried general managers' jobs are often converted to hourly positions.
The state's unusual policy of requiring overtime for employees working more than eight hours in a day, rather than more than 40 hours a week, reduces scheduling flexibility, and the complex overtime regulations are often taken advantage of by lawyers who sue companies for minor and often unintentional violations. For example, the rate of overtime is 1.5 times the rate of regular pay after an eight-hour day or 40-hour week, and double time for more than 12 hours worked in a day.
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