California's stringent workplace regulations are thought to have contributed to the loss of more than 600,000 private sector jobs over the past decade - the highest loss in the U.S. It was also recently named the worst state in which to do business for the seventh consecutive year by Chief Executive magazine.
In contrast, Texas added more than 700,000 private sector jobs, making it the most successful in the nation.
Companies are eschewing expansion in California partly because of strict meal and break legislation, as well as employee time and attendance laws that make flexible scheduling difficult.
According to the Department of Industrial Relations, overtime is required for employees working more than eight hours a day under California state law, not just those working over 40 hours a week as in most states. Employees who do not receive meal breaks of 30 minutes per five hours of work are permitted to collect additional pay, and the state court rules in April 2007 that employers who violate meal and rest provisions can be sued to collect monetary compensation for a period going back three years.
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