Winter 2008 - California Framing Contractors Association
Transcription
2008 Board Members Bill Dickinson President County Line Framing Craig Backstrom Secretary Surco Development Joseph L. Bunker Treasurer B&B Framing, Inc. Mark Benedetti Board Member SelectBuild Southern California Wayne Carey Board Member C.W. Construction Dale DeCarlo Board Member Preferred Framing, Inc. James Elliott Board Member Trico Framers, Inc. Frank Mercier Board Member Lucas & Mercier Co. Bill Montalvo Board Member Mon-May Enterprises, Inc. Donna Porter Board Member Coast Framing, Inc. Thomas Rhodes Board Member T.W.R. Framing John Romero Board Member JR Framing, Inc. Valerie Smith Board Member Stevco Framers John Volkman Board Member SelectBuild Northern California John Williams Board Member Rancho Framing, Inc. California Framing Contractors Association Committed to improving our industry through safety, training, education, and being proactive politically. To protect and improve our future for the next generation. CFCA Newsletter Inside this issue: President’s Message Pg.1 Associate Pg.2 Spotlight – Safety Compliance Company, Inc. Associate Pg.3 Spotlight – Comet Engineering, Inc. Joining Pg.4 Habitat in Building Safe, Strong Homes CFCA Update Pg.6 Plan Your Exit Pg.7 So You Have Time To Implement Don’t Get Nailed Pg.8 by the New Pneumatic Nailer Regulation! Debug #7 Pg.9 Revisited - California’s Serious Injury Reporting Requirement Is Alive and Well... Or Is It? Housing Market Pg.11 Projections: Is it Anyone’s Guess When it Will Turn Around? Court of Appeal Pg.12 Provides Limited Victory in California Wage and Hour Wars Response Letter Pg.21 to Builders Regarding Drywall Finishes The articles in this newsletter are intended to be used for informational purposes only and not intended to be legal advice. CFCA recommends that the reader seek advice of individual legal counsel or expert consulta- tion regarding any newsletter article’s applicability to one’s organization. Volume 5, No. 1 - Winter 2008 Dear CFCA Members: President’s Message: One of the concerns facing the construction industry today is the threat of company employee documentation audits by the Department of Homeland Security and its immigration enforcement arm, Immigration and Customs Enforcement (ICE). The CFCA Board Members interviewed three different law firms at the Board Meeting in November. Each of the three law firms has reputable attorneys who specialize in Labor and Employment Law with specific expertise on immigration issues. We have asked each law firm to provide us with a proposal for assisting the CFCA Board of Directors in establishing the following services for our members. 1. To establish protective practices for our member employers, including guidelines for hiring, documentation, document retention, and guidelines if companies receive response to “no match” letters from the IRS. 2. Educational workshops and presentations for our members’ human resource professionals and owners. As issues and concerns from regulatory agencies continue to come to our attention, it is this Board’s goal to provide the member companies with the expert guidance needed to run our businesses today. We encourage all members to participate in the CFCA activities throughout the year. Although the current housing market has put a strain on our respective businesses, it is important to stay current on the impacts regulations and employment laws have on our businesses and how we can continue to be a united voice in Sacramento when issues arise. At our General Membership meeting in November, we had a prominent figure speak to our group. Mr. Len Welsh, newly appointed by the Governor as the Chief of the Division of the Occupation Safety and Health (DOSH), was our keynote speaker. Mr. Welsh has been the Acting Chief of DOSH since 2003. He encouraged employers and associations such as ours to be present at the table to discuss the impacts of the specific regulations as they are being proposed or modified. It was his message that, although their mission is to keep employees safe, they too want to implement regulations that work and do not unduly impact employers. Many of the Board Members have been involved in the Cal/OSHA Advisory Committee meetings over the past few years starting with the Fall Protection Standard six years ago. Since that time, we have worked with other stakeholder groups, such as AGC and the California Chamber of Commerce, when standards are being proposed that affect the construction industry. Some of the standards have included the Heat Illness Prevention Standard for Outside Workers and a separate proposed standard for Indoor Workers, Pneumatic Nailer Standard, MultiEmployer Job-Site Safety, First Aid Modifications, and others that may have affected our industry. Mr. Welsh encouraged us to remain involved. As company owners, we can help the State develop standards that work and serve the purpose for which it was established—to protect California employees. I too want to encourage all of you get involved and offer your recommendations with Cal/OSHA and other State agencies. I also encourage you to attend our General Membership meetings. Over the past year, I have noticed a reduction in the numbers of attendees to our meetings. With the caliber of speakers we have had recently, we want to have a showing of strength in numbers at each of our meetings. We will be sending you a calendar of events for the coming year to help you plan your schedule. Thank you for your continued support. Check out our website: www.californiaframingcontractors.org Page 2 Associate Spotlight – Safety Compliance Company, Inc. Safety Compliance Company, Inc. (SCC) has been in business for over 15 years providing safety programs, safety inspections, safety meetings, and OSHA appeals representation. Our unique approach of being hands-on in providing these services has saved Framers tens of thousands of dollars in reduced workers’ compensation costs and OSHA fines. Our safety programs are specifically tailored to the industry to offer the employer a resource for educating themselves and at the same time providing legal requirements set by OSHA law. SCC’s commitment to updating safety programs as new laws come in or as regulations change has been a proactive solution for the framing industry. When SCC conducts trainings, they meet OSHA requirements as well as are interactive and specific to the industry issues that can be applied in the field. SCC also provides safety inspections to not only meet regulations but to educate the employee of on-the-job hazards that could cause serious injury. The approach of educating employees and supervisors while creating documentation that offers legal protection has been a combination of success to help keep our framing clients competitive in their marketplace. SCC has also provided OSHA Appeal representation which has been a great benefit to the framing industry over the past 15 years. The relationship we have built in providing solid and reliable safety services has given OSHA a reason to respect SCC. This has given SCC unprecedented ability to negotiate on our clients’ behalf. SCC’s biggest strength has been providing solutions in an ever-changing environment for the framing industry, whether through seminars to provide clarification on fall protection laws or the development of new training procedures specific to the framing industry. SCC has partnered with the framing industry to help create a CFCA Newsletter culture of leading the construction industry in safety. By providing all of these services and building relationships with our client base, SCC has grown to represent clients in five different states. The key to SCC’s continued growth and success is to conduct business based on the Company’s Mission Statement, “A worthy enterprise is based on educating and servicing.” Kirk Herold, Vice President, Safety Compliance Company, 21250 Box Spring Road, Suite 207, Moreno Valley, CA 92557; Telephone (562) 822-7233 or (800) 901-7926. CFCA Newsletter Associate Spotlight – Comet Engineering, Inc. ONE STOP SHOPPING For All Your Framing Products and Services – All At Discounted Pricing! WHY SHOP ANYWHERE ELSE? In today’s market, it’s important to find quality framing products and services that won’t break your budget. Comet understands. Supplying superior products throughout Southern California, Comet Engineering is the one-stop place to shop for any smart framer. With already amazing deals and frequent blow-out sales, Comet is the only place you need to go to for all of your basic framing needs. HOW DO WE DO IT? Comet sells all of their products at the lowest price in the industry. Because Comet has the strong purchasing power to buy all of our items in bulk, we can pass the savings on to you! Whether you’re looking for saw blades, hard hats, ladders, staples - or any other supplies - go with Comet for a real steal. In addition to unheard of prices, Comet provides premium products and services for all of your basic framing needs. Our 20” trailer mounted radial arm saws are still the best in the market, and we use that as a model for our sales. While incorporat- ing our tradition of supplying inexpensive, quality saws, we now offer amazing savings on other top-of-the-line products. Comet offers the safety, supplies, and services that every framer needs to get the job done right. We have all of the contractor supplies that those other guys carry - furring strips, marking paint, and even trailer mounted barbecues - at dirt-cheap prices. Do you have a Hitachi nail gun that needs repairs? We can fix it! Safety is important for every project, but that doesn’t mean you have to waste your money on buying expensive products. Our quality OSHA certified safety rail installation can be purchased or rented out at a great bargain. Just let us know and we’ll come down there and install it! We even offer free certified saw training for every saw rental or purchase! COMET WHO? It all started in 1997 when Comet Engineering purchased the product line and the rights to manufacture parts from the once renowned Boice Crane Radial Arm Saw Company, and most recently from M.I.T. International of Gothenburg, Nebraska. Constructed with a solid bench and an accurate cut, Comet’s Radial Saw proved to be a quality product that saved time and money for framers Page 3 looking to cut their own lumber. The calls came pouring in, and the Comet Radial Saw soon became a best seller. While gaining experience working hand-in-hand with local framing companies, Comet came to understand what the framers’ needs were. Our valued customers asked us to use our knowledge to offer them not only the greatest saw in the industry, but also the most used products at amazing prices. From there we founded Comet Engineering, Inc. to provide framers with the fundamental products and services needed to complete any project… but for a fraction of the cost! SO PICK UP THE PHONE AND CALL. Whatever it is you’re looking for, shop at Comet. Don’t waste your time and money going to those big corporations; come to Comet and save a fortune. With so many options at such amazing prices, you’d be insane not to go with Comet! Comet Engineering Inc. is conveniently located at 9225 Charles Smith Ave. in Rancho Cucamonga. Call Travis today for additional pricing and information on our blow-out sales. Our toll-free phone-number is (800) 641-6466. We’re looking forward to hearing from you! Page 4 Joining Habitat in Building Safe, Strong Homes Habitat for Humanity International in August 2007. Simpson is donating $250,000 in cash and products over the next four years for a total donation of $1 million. The contribution is helping to support several Habitat houses across North America and national programs, such as the Gulf Recovery Effort and the Jimmy Carter Work Project. Simpson’s national agreement also includes employee volunteer time to help with the building of Habitat homes. A proud supporter Humanity for more Simpson Strong-Tie national sponsorship of Habitat for than a decade, announced its agreement with Habitat for Humanity International is a nonprofit organization that is dedicated to eliminating poverty housing around the world. Since 1976, Habitat has built more than 225,000 houses worldwide, providing simple, decent and affordable shelter for more than one million people. As a manufacturer of structural connectors, prefabricated shearwall panels and other fastening systems, Simpson CFCA Newsletter Strong-Tie products reinforce the frame of a home, increasing its ability to resist high winds and earthquakes. Terry Kingsfather, president of Simpson Strong-Tie, said: “We are very proud to be working with an organization with which we share the same goal of helping to build safe, affordable housing world-wide.” ™ The FutureFlash System Helps Prevent Unwelcome Guests Pictured: Stachybotrys chartarum (toxic mold) Wind, rain, and ice aren’t the only unwelcome guests trying to enter your home! Intruders such as toxic mold* and mildew have been linked to serious health problems, not to mention expensive remediation. That’s why it makes sense to invest in the FutureFlash™ Window Sealing System before the siding material goes on. Patented FutureFlash™ Waterproof Membrane and FutureFlash™ Sealant create a state-of-the-art barrier designed for use with all siding materials, but especially traditional stucco, where significant through-wall moisture movement can occur. Installed as directed, the FutureFlash System protects against leaks and interior damage, yet the unique “weep” characteristic of the system lets the structure breathe. Moisture drains away – wall cavities stay drier – and that helps discourage “unwelcome guests” from moving in! With FutureFlash, what belongs outside stays outside! MFM Building Products Corp. P.O. Box 340 Coshocton, OH 43812 800-882-7663 by Schnee-Morehead, Inc. 111 N. Nursery Road Irving, TX 75060 800-878-7876 *To obtain the most up-to-date information for preventing mold, mildew and bacteria growth, consult your state and Federal environmental and health departments for recommended guidelines. Page 6 CFCA Update CFCA Association Goals for 2008: The CFCA Board of Directors met in September to discuss the members’ requests and ideas that were generated at the August General Membership meeting. We will continue to hold quarterly General Membership meetings and provide during these meetings opportunities for our Associate Members to not only network at these meetings but to also showcase their company by providing materials on your products and services. If you are interested in showcasing your products or making a presentation at a General Membership meeting through meeting sponsorships, please contact me at (916) 485-3367 or jblom@iwins.com. During the November CFCA Board of Directors meeting, three attorneys with expertise on immigration issues for employers were interviewed. These attorneys all have extensive experience with representing employers in all aspects of immigration law. We will be CFCA Newsletter providing our members with guidelines for protecting your business in hiring and human resource documentation retention, hold seminars, and provide written information to you via the newsletter and through e-mail. We are developing a Calendar of Events for 2008 and will distribute it to all members in January. Thank you for your continued support to the CFCA. Safety Committee Update: The Safety Committee will be completing tailgate trainings in both English and Spanish for membership use by the beginning of next year. The committee compiled a series of trainings from their companies and other member companies to arrive at a list of topics and to review different formats. The committee members were in agreement that the format and trainings that Alex Mercier provided were excellent. They have agreed to let all our members use the trainings their company has developed. Thank you Alex for this value added service for our members. Each company will be receiving a copy of the trainings in the mail on CD and they will be posted on the CFCA website. They will be sent in a format that you can add your company name and modify to meet your organization’s specific needs. Throughout the year, we will add tailgate trainings for other topics as needed or requested by the membership. If you want to become a member of the CFCA Safety Committee, please contact me at (916) 485-3367 or jblom@iwins.com. Jodi Blom, CFCA Executive Director CFCA Newsletter Plan Your Exit Now So You Have Time To Implement (Part One) I am a CPA and financial planner and have the experience of working with dozens of clients through the process of exiting their businesses. I am also a business owner as well and therefore share many of the same concerns and objectives as members of CFCA. This is the first of two articles on the subject of Business Succession in which I will review the pros and cons of various exit strategies. In the second article, I will review the benefits of using an Employee Stock Ownership Plan (ESOP) as an Exit Strategy. What are the most common objectives business owners want to achieve when considering a transition of ownership? My experience indicates the following priorities: 1. Provide a safe and secure retirement for the selling owner by converting the value of the business into liquid assets that are no longer at risk from claims of creditors, litigants, employees, and reg- ulators. Recognize that in most cases this “safe and secure” retirement fund is net of lots of income taxes paid to the IRS and the State of California. 2. Provide a benefit to the key employees that helped make the business a success. I find that most business owners feel a genuine obligation to reward the years of loyalty and contribution of key employees. Unfortunately, this becomes very difficult unless planned well in advance of a business sale or an ESOP is established. 3. Continue the legacy of the business. Most business owners have spent more of their life building their business than raising their family. Not only has the owner benefited from financial success, but more importantly, he has created something of value that is a great psychic reward. It is quite natural for the owner to feel a tremendous sense of pride for the many lives he has positively impacted over the course of his business stewardship. Page 7 4. Sell the business over time in two or three phases. It is very difficult to turn over the keys to your business on a Friday afternoon and never come back again – especially if you are still owed money from the sale. Although not always practicable, many of my clients have sold up to 30% or 40% initially and continued to work and grow the business for a period of years. Not only did this create the “safe and secure” retirement asset well in advance of actual retirement, it also resulted in a more valuable remaining asset to sell at a later date. Most business advisors and investment bankers would list three exit strategies as the most prevalent among middle market business owners. My list adds a fourth. The list, in order of initial owner preference, is: (a) sell to family members, (b) sell to a third party, (c) sell to management, and (d) sell to an ESOP. Each of these alternatives has disContinued on Page 13 Page 8 Don’t Get Nailed by the New Pneumatic Nailer Regulation! It has been nearly three years since we set out on a course to update the Nail Gun regulation after many of us were getting cited for “unattended” nailers and nailers “not in use.” Well, those days will be gone soon. The new Title 8, Construction Safety Orders Section 1704 became effective on November 30, 2007. The new regulation was a result of a consensus reached through the advisory meeting process which many of the California Framing Contractors Association (CFCA) members participated in. As a result of those efforts, we now have a regulation which more closely mirrors actual practice in the field and establishes a nexus with the regulatory requirements and actual hazards. One of the key components of the new regulation is training. Training is now required in three major areas: 1) prior to use; 2) when an employee is observed using a nailer in an unsafe manner (“refresher training”); and 3) when an employee has been involved in an accident. The training must be conducted by a qualified person and include a “hands-on” training component. At a minimum, the training should include discussion of your company’s Code of Safe practices relating to nailers, hazards related to each mode of actuation (bump fire and sequential), and basic operating instructions. Proof of this training should be documented in each employee’s personnel file and made part of your new-hire package. In addition to the training components, the new regulation prohibits the removing or altering of the operating controls and safety devices on the nailer. Although the regulation no longer includes “unattended” type language, it does require that the nailer be disconnected from the air supply when maintaining, repairing or clearing a jam from the nailer. Also, the new regulation requires that the air hose be secured at the roof level on roof slopes that are steeper than 7:12. However, the harness and safety belt requirement on 1/3 pitch roofs was deleted from the new standard to make fall protection requirements for nailing on roofs consistent with the Title 8 Section 1716.2 framing standard. Below is the standard in its entirety: CFCA Newsletter Section 1704. Pneumatically-Driven Nailers and Staplers. (a) Definitions. (1) Light-Duty Nailers and Staplers: Tools designed to only drive fasteners meeting both of these requirements: (A) Fasteners 1-inch nominal length or shorter. (B) Fasteners made from wire with cross sectional area less than 18 ASWG. (2) Mode of actuation: The use of a trigger, work-piece contact and/or other operating control, separately or in some combination or sequence, to actuate the tool. Modes of actuation include “bump fire” and sequential modes. (b) General. (1) All pneumatically-driven nailers and staplers shall have a safety device on the muzzle to prevent the tool from operating unless the muzzle is in contact with the work surface, to prevent accidental discharge. Exception: Light-Duty Nailers and Staplers. Continued on Page 15 CFCA Newsletter Page 9 DeBug #7 Revisited – California’s Serious Injury Reporting Requirement is Alive and Well ... Or, is it? October 17, 2007 Pop Quiz: Your employee sustained back injury last August. He has been treated with medication and various physical therapy modalities since that time. The employee has continued working, on modified duty, without further incident. Last week your worker’s compensation claims summary indicated the employee is scheduled for surgery today. The employee has also notified you that he is set for surgery, will remain in the hospital for three days and will need the rest of the week off to recover. Question: Must you now call your local Cal/OSHA office to report the employee’s injury and surgery? Answer: If you don’t, you will be in violation of Title 8 California Code of Regulations Section 342(a) AND, if cited, will receive a $5,000 fine. The Appeals Board has taken (in our opinion) a reasonable approach in allowing reduction of the $5,000 penalty attached to every citation for failure to report a serious occupational injury. Will the Board take a similarly reasonable approach when addressing employers’ obligations to report injuries that only become “serious” well after the original injury? The issue is ripe for review and we are hoping for an answer very soon. California Code of Regulations section 342(a) requires employers to immediately report the serious injuries and illnesses or death of an employee to the Division. “Immediately” means as soon as possible and not longer than eight hours after the employer knows or should know of the serious nature of the injury. Section 342(a) also provides that if an employer can demonstrate that exigent circumstances exist, the time frame for the report may be made no longer than 24 hours after the incident (emphasis added). A serious injury is defined in California Code of Regulations Section 330(h) as that which (1) results in death; (2) requires hospitalization for more than 24 hours for other than observation; (3) involves the “loss of any member of the body”; or (4) results in permanent disfigurement. The issue of whether report of a serious injury was required when the injury is not initially “serious” and does not become "serious" within the 24 hours following the injury has been addressed by the Occupational Safety and Health Appeals Board (OSHAB) in Debug # 7, Inc. dba Wood-Ply Forest Products OSHAB 92-1329 Decision After Continued on Page 16 “Working at Heights” Safety Manual Avoid Injuries... Teach Safety! A must-have safety resource manual for every employee working at heights. Order now for your next safety meeting. All employees should have one! Available in black & white at $6.50 each or full-color at $16.50 each. Topics In This Manual Include: • General Safe Practices • Hanging Joist • Installing Trusses • Installing Fascia • Sheeting • Wall Framing Compiled By California Framing Contractors To Order Please Call: (909) 989-8550 and we will customize your Safety Manual cover with your company name, logo, etc. at no additional cost. CFCA Newsletter Page 11 Housing Market Projections: Is it anyone’s guess when it will turn around? It is probably anyone’s guess when the housing market begins to turn around. From the articles I have read, there are predictions that the market will remain sluggish in the first two quarters of 2008 and will begin to have a slow recovery toward the end of 2008. At our Northern California meeting, John Schleimer, President of Market Perspectives, said from his research that if the economy remains relatively positive, such as the stock market remains strong and interest rates continue to remain at relatively low rates, he too predicts a rebound the end of 2008. Greg Paquin, the real estate consultant who spoke at one of our CFCA General Membership meetings last year, was recently quoted in the January 2008 edition of Kiplinger’s Personal Finance Magazine in the article entitled “The Worst is Yet to Come.” One of the hardest hit areas in the nation has been Merced, California, located in California’s Central Valley. After the announcement that the University of California was opening a campus in Merced, homebuyers in search of affordability moved in mass from the Bay Area to Merced. Close behind the owner occupied homebuyers were investors who helped drive up the cost of housing throughout the region. Many of these investors have now walked away from the homes as prices plummeted resulting in a horrendous rise in foreclosures in that area. Greg Paquin stated in the article that, “Over the long term, Merced will thrive. He notes that historically, the U.C. campuses have juiced up local economies, but it takes time.” Other California Valley cities impacted similarly to Merced listed in the article was Stockton, Sacramento, Bakersfield, and Modesto. This phenomenon is similar to what the Inland Empire has experienced with investors purchasing homes in these relatively affordable locations outside of expensive areas along the coast. The good news is these cities should see an eventual turnaround due to its affordability index compared to the Bay Area and Los Angeles. The affordability index measures the housing price and the area income level to determine its index. Experts in that same article speculate that we can expect prices to fall another 5% nationally in 2008 but the market should bottom out by mid year. Some areas of the country, such as Las Vegas and Phoenix are expected to see home prices decrease up to 17% and 15% respectively. Not all housing is created equal in this scenario. Last year the average price of condos increased by 1.4%. Mid sections of the country are expected to come back sooner than the coastal areas. Although recession is considered the largest wild card in the equation, many experts believe the U.S. economy will skirt around the edge of it. The Joint Center of Housing Studies at Harvard University recently published a report, “Projecting the Underlying Demand for New Housing Units: Inferences from the Past, Assumptions about the Future.” In this 48page report, between the years 2005 to 2015, it is projected that 14.6 households will be added in the U.S. They cite that some of the reasons for this increase is due to immigration, replacement of aging housing, and the baby boomers demand for second homes. Hispanics and other minorities are expected to propel household growth. This is good news for California; however; affordability will continue to be the challenge. If the experts are right, the housing market should begin to turn around the last two quarters of 2008. Let’s hope it is no longer than what they speculate. Researched by Jodi Blom Page 12 CFCA Newsletter Court of Appeal Provides Limited Victory in California Wage and Hour Wars For the last several years, California employers have been fighting numerous wage and hour lawsuits involving claims that employees did not receive their meal and rest breaks. Many of these lawsuits have resulted in multimillion dollar verdicts and settlements and have made headlines. These headlines have raised the awareness of employees and trial attorneys and led to further increases in the number of lawsuits. As a result, employers have been looking to the courts for some relief. An ongoing question has been whether employers have to ensure that their employees take meal breaks, or whether they merely need to authorize employees to take these breaks. The outcome of one recent case, Brinker Restaurant v. Superior Court, was eagerly anticipated by employers because it was expected to address this issue. While the Brinker decision did not finally decide the issue, the court appeared to tip its hand on how it would resolve this question. Although it left that issue for another day, the case did provide much needed guidance on defeating class actions involving rest period claims. The Brinker case should be viewed as good news for California employers defending wage and hour lawsuits. Background Brinker operates numerous restaurants throughout California, including Chili’s, Macaroni Grill and Maggiano’s Little Italy. The plaintiffs, restaurant employees, filed a class action lawsuit on behalf of all of Brinker’s hourly employees claiming that they were denied meal and rest breaks, among other wage and hour claims. In July 2006, the trial court certified a class of approximately 60,000 current and former Brinker employees. Brinker thereafter appealed the decision to the Court of Appeals, which reversed the trial court. Rest Breaks The Court of Appeals first addressed the plaintiffs’ claims that they did not receive proper rest breaks. Labor Code Section 226.7 provides that “No employer shall require any employee to work during any meal or rest period mandated by an applicable order of the Industrial Welfare Commission.” The Industrial Welfare Commission Wage Orders provide that employers must “authorize and permit” employees to take rest periods, which “insofar as practicable” shall be in the middle of each work period. The rest period is based on the total hours worked each day at the rate of ten (10) minutes net rest time per four hours or major fraction thereof. A rest period need not be authorized for employees who work less than three and one-half hours. Plaintiffs claimed that Brinker’s rest break policy violated the law because the policy did not make a rest break available to employees until after they worked at least four hours and because it did not provide for a rest break before the first meal period. The trial court found that the issue of Brinker’s obligations under the Labor Code with respect to rest breaks was a common enough issue to justify Continued on Page 18 CFCA Newsletter Plan Your Exit Now So You Have Time To Implement Continued from Page 7 tinct pros and cons that may differ among individual business owners. Here is how I score the first three exit strategies when compared to the list of exiting business objectives: Selling to Family Members – This is the surest means to secure the legacy of the business, but also one fraught with the most risk to the seller and the worst record of success. It also may allow for transition of ownership over time. The critical questions are: 1. Can family members successfully operate your company? Will all family members be active, contributing owners or will some just be passive owners? There are resolutions for some of these concerns, but they are complicated. 2. Do family members have the money to buy your company? In almost all cases, the answer is no. If this is your situation, then are you really headed down the path to a “safe and secure” retire- ment? Have you really resolved estate liquidity issues when you take back a BIG note receivable for the sale of your business? 3. Will the “non-family” key management work for your children? By selecting this alternative, have you limited the opportunities for these managers? 4. How will banking and bonding relationships be impacted? Will you need to continue to guarantee these lines? Remember, your “friendly tax man” has a role in this alternative. Your proceeds are taxable as collected (generally at capital gain rates – approximately 25% between Federal and State, but more importantly, your children (the buyer) may need to earn as much as $1.80 for every $1.00 of purchase price you are paid. Can they operate the business well enough to cash flow the payments to you? Selling to a Third Party – This alternative may yield the highest purchase price Page 13 (Strategic vs. Financial value), but you will need to negotiate hard for the most favorable terms so you have as little purchase consideration at risk as possible. Unfortunately, this choice scores the lowest on achieving the other owner objectives: 1. The legacy of your company is not likely to continue. 2. In almost all cases, the transition is all at once. 3. Your key managers are usually replaced within 18 months. This is not because they did not perform. You must realize a buyer always “knows better” than you and your management about how to make your company successful. 4. Buyers look for “consolidation” benefits which results in more employee dislocation or relocation of your headquarters to another city. Since most third party buyers will only agree to an asset purchase vs. a stock purContinued on Page 14 Page 14 Plan Your Exit Now So You Have Time To Implement Continued from Page 13 chase, you may have some of your purchase price taxed at ordinary income tax rates, while the majority of the gain will still be taxed at capital gain rates. Selling to Management – This alternative has the most positive characteristics of the first three strategies: 1. The legacy of your company can continue. 2. You have the opportunity to reward key employees by making them owners. 3. It is likely that all your employees will retain their positions and the company will not be relocated. 4. You can transition ownership over a period of time. There are, however, some important concerns with this alternative: 1. Does management have the money to buy your company? In almost all cases, the answer is no. If this is your situation, then are you really headed down the path to a “safe and secure” retirement? Have you really resolved estate liquidity issues when you take back a BIG note receivable for the sale of your business? 2. Does management want to take the risk of ownership? It is reasonable that you ask them to pay some of the purchase price in cash and personally guarantee the promissory note. They may also have to guarantee the bank credit line. Given the ages of your management team, do they really want to buy your company? Remember, your proceeds are taxable as collected (generally at capital gains rates – approximately 25%), but more importantly, management may need to earn as much as $1.80 for every $1.00 of purchase price you are paid. Can they operate the business well enough to cash flow the payments to you? In the next article, I will present the ESOP concept and you will see that this fourth alternative scores the highest of all from the CFCA Newsletter perspective of meeting business ownership transition objectives AND overcoming much of the income tax burden of selling. Ownership planning is equally as important as business planning. If you ignore both, you will not achieve the success you deserve for all you hard work and you will struggle dearly with how to convert the value of your business into liquid assets. Focus on this notion of Ownership Planning – Create the ability to leave your business under the most favorable conditions. I wish I could claim credit for this quote, but I found it in a great book on the subject – How To Run Your Business So You Can Leave It In Style – John H. Brown. James D. Roorda, Roorda, Piquet & Bessee, Inc., Certified Public Accountants, 5995 Brockton Avenue, 2nd Floor, Riverside, CA 92506; Telephone (951) 6847781; Fax (951) 684-2921; Firm e-mail: rpb@rpbcpa.com CFCA Newsletter Don’t Get Nailed by the New Pneumatic Nailer Regulation! Continued from Page 8 (2) All pneumatically-driven nailers and staplers shall be operated and maintained in accordance with the manufacturer’s operating and safety instructions. (3) Personal protective equipment shall be utilized in accordance with Construction Safety Orders Section 1514. (4) Operating controls shall not be removed, tampered with, altered, or otherwise disabled. (5) Pneumatically-driven nailers and staplers shall be connected to the air supply with a safety disconnect that consists of a spring loaded shut-off valve and a positive locking mechanism to prevent the tool from becoming accidentally disconnected. (6) Tools shall be equipped with a fitting that will discharge all compressed air in the tool at the time the fitting or hose coupling is disconnected. (c) Pneumatically-driven nailers and staplers shall be disconnected from the air supply at the tool when: (1) performing any maintenance or repair on the tool, or (2) clearing a jam. (d) On roofs sloped steeper than 7:12, the air hose shall be secured at roof level in such a manner as to provide ample, but not excessive, amounts of hose. (e) All pneumatic hoses exceeding 1/2-inch inside diameter shall have a safety device at the source of supply or branch line to reduce pressure in case of hose failure. (f) The employer’s written Code of Safe Practices shall include provisions for the use of pneumatically-driven nailers and staplers where applicable. (g) Training. (1) The requirements of this Section shall apply in addition to training required by Construction Safety Orders, Section 1509, and General Industry Safety Orders, Section 3203(a)(7). (2) Safety training shall be conducted prior to initial assignment to operate pneumatically-driven nailers or staplers. (3) Refresher training shall be provided to the operator when: (A) The operator has been observed using the pneumatically-driven nailer Page 15 or stapler in an unsafe manner; or (B) The operator has been involved in an accident. (4) Safety training shall include, but not be limited to, the following elements: (A) The employer’s Code of Safe Practices for pneumatically-driven nailers or staplers. (B) The hazards related to each mode of actuation for pneumatically-driven nailers and staplers. (C) Hands-on training to verify that the operator understands the operating and safety instructions. (5) Training shall be conducted by a qualified person. The CFCA produced a sample training document and code of safe practices that coincides with the new nailer regulation. The sample documents are currently available to CFCA members through the web site. If you have any questions, please feel free to contact Kevin D. Bland, Esq. at (949) 861-4100 or e-mail him at Kevin.Bland@GBLaws.com. Page 16 CFCA Newsletter DeBug #7 Revisited – California’s Serious Injury Reporting Requirement is Alive and Well ... Or, is it? Continued from Page 9 Reconsideration (June 26, 2005). The Appeals Board’s response to that inquiry was a resounding YES. Debug #7 involved an appeal of a citation for failure to report an employee’s injury. The employee in that case sustained an injury on May 21, 1991. The injury did not become “serious” until the employee underwent a surgery on October 9, 1991. Employer was advised of the surgery, by its worker’s compensation carrier in an insurance claims status report, on October 24, 1991. Debug #7 argued that because the injury was not "serious" within the 24 hours following the incident, it had no duty to report the injury to the Division. The Appeals Board reject this argument, concluding that it is the date the employer becomes aware of the seriousness of the injury that triggers the reporting requirement and that the date of the incident is not relevant to the reporting time line. Interestingly, the Appeals Board supported this conclusion by explaining that the purpose of the regulation is to provide for timely inspection by the Division of potentially dangerous conditions or equipment that may pose a hazard to other employees. The Appeals Board reasoned that such a risk could be present even though a serious injury is not manifest within the first 24 hours following an incident or exposure. How the purpose of the regulation was to be served by requiring reporting of a back injury that became surgical, and therefore ”serious,” five months post injury was not addressed by the Board. Further, the Board provided employer with no guidance as to when its duty to follow its employee’s condition ends, if ever. Fast forward to September, 2007. The Division issued a citation to the City of Santa Rosa for failing to report the serious injury of an employee. (Read our original article on this issue: “When in Doubt, Report: Not So Fast,” reprinted on our website with the permission of the Cal/OSHA Reporter. The City’s appeal of the citation was submitted to an OSHAB Administrative Law Judge (ALJ) by stipulation of facts and for a decision. The facts of that case, as agreed upon by the parties, are as follows: February 22, 2002: City employee sustains an industrial injury. The injury was Continued on Page 17 CFCA Newsletter DeBug #7 Revisited – California’s Serious Injury Reporting Requirement is Alive and Well ... Or, is it? Continued from Page 16 not “serious” as defined by Title 8 CCR section 330(h); June 14, 2002: Employee undergoes a surgery as a result of the 2/22/02 injury. The surgery required hospitalization for more than 24 hours; July 22, 2002: City is advised of Employee’s surgery when it receives a copy of a physician’s letter summarizing Employee’s post-operative examination and referencing the June 14th surgery. City did not report Employee’s surgery or hospitalization to the Division; October 1, 2004: Employee reported her injury and surgery to the Division; March 4, 2005: The Division issues a citation to City for failure to report Employee’s injury. The ALJ’s decision, issued September 15, 2007, upholds the citation. Citing the reasoning of Debug #7, the ALJ rejects the City’s argument that requiring employers to follow employee conditions indefinitely to ensure that they do not become “serious” in no way serves the purpose of the reporting regulation. The City’s argument that the OSHAB should interpret the regulation pursuant to the federal model requiring reporting of injuries that become serious within the first 30 days of the incident was also rejected as being within the authority of the Standards Board, not the Appeals Board. So, for now, the serious injury reporting requirement is alive and well. The parties, including the full Appeals Board, have 30 days from the date of this decision to file a Petition for Page 17 Reconsideration. We believe this issue is in need of review. We will be watching to see if we are not the only ones. October 25, 2007 – Update The Occupational Safety and Health Appeals Board has decided, on its own motion, to reconsider the decision issued in Santa Rosa City Transit and Parking Department. That decision upheld the rule that employers are bound to report injuries when they become “serious,” even if it is years after the event. Fred Walter and Lisa Prince, The Walter Law Firm, 489 Powell Avenue, Healdsburg, CA 95448; Toll Free (866) 820-7900; www.walterlaw.com Page 18 CFCA Newsletter Court of Appeal Provides Limited Victory in California Wage and Hour Wars Continued from Page 12 class treatment. The Court of Appeals reversed the trial court’s ruling. The Court explained that because the applicable Wage Order provides only that rest periods should be scheduled in the middle of each work period “insofar as practicable,” “the propriety of permitting a rest break near the end of a typical four-hour work period depends on whether the scheduling of such a rest break was practicable in a given instance, and thus cannot be litigated on a class basis.” In addition, the Court noted that employees can waive rest breaks and that employers do not have an obligation to ensure that employees take rest breaks. The Court therefore found that the issue of whether Brinker actually denied rest breaks to any employees had to be examined on a case-by-case basis and not on a class basis. Meal Breaks With respect to meal breaks, the plaintiffs claimed that Brinker: (1) violated the law by requiring employees to take lunch early, often at the very beginning of their shift, (2) needed to provide a meal break every five hours on a “rolling” basis, and (3) was required to ensure that its hourly employees actually took their meal periods. The trial court certified the plaintiffs’ meal period claims as a class action. The Court of Appeals again reversed the trial court’s decision and rejected the plaintiffs’ “early lunching” claims and the contention that employers must provide meal breaks on a rolling five-hour basis. The Court noted that employers need only provide one meal period for any work period less than ten hours. The Court was unwilling, however, to rule on the issue of whether employers must ensure that employees actually took meal breaks, as opposed to merely authorizing breaks. Labor Code Section 512 states: “An employer may not employ an employee for a work period of more than five hours per day without providing the employee with a meal period of not less than 30 minutes, except that if the total work period per day of the employee is no more than six hours, the meal period may be waived by mutual consent of both the employer and the employee. An employer may not employ an employee for a work period of more than 10 hours per day without providing the employee with a second meal period of not less than 30 minutes, except that if the total hours worked is no more than 12 hours, the second meal period may be waived by mutual consent of the employer and the employee only if the first meal period was not waived.” The question is what is meant by the term “providing” in this section. The plaintiffs argued that this meant that employers must ensure that employees take their meal breaks. The trial court had not analyzed this issue, and therefore, the Court sent the case back to the trial court for consideration. In doing so, however, the Continued on Page 19 CFCA Newsletter Page 19 Court of Appeal Provides Limited Victory in California Wage and Hour Wars Continued from Page 18 Court strongly implied how it expected the trial court to rule on the issue. For example, it referred the trial court to the dictionary definition of “provide” which states to “make available.” The Court also referenced a recent federal court decision, White v. Starbucks, which did consider the issue and held that employers need only authorize meal breaks. In Starbucks, the court held that employers need only offer meal breaks, and that employees must show that they were actually forced to forego meal breaks in order to state a claim for meal break violations. By citing Starbucks, the Court appeared to be suggesting that the trial court should find, as the court in Starbucks did, that employers need only provide meal breaks, they need not ensure that employees take them. Conclusion Although the Brinker decision is currently unpublished, and therefore cannot be relied upon as authority in other cases, our firm has requested that the Court of Appeals publish the decision. Even if it remains unpublished, the Brinker decision still provides important lessons for employers. First, the decision signifies that employers with policies authorizing rest breaks (and that follow these policies) are in a strong position to defend against and possibly defeat class action rest break claims. Second, although the Court sent the issue of what employers must do to “provide” meal breaks back to the trial court, the guidance the Court gave to the trial court on this issue suggests that the issue may ultimately be decided in favor of employers. Until then, the Brinker case is yet another reminder of the importance of complying with the meal and rest break requirements under California law. If you have any questions regarding this alert or strategies to avoid meal and rest period lawsuits, please contact the attorneys in AALRR’s Employment Services practice group. Scott K. Dauscher and Christopher S. Milligan are with Atkinson, Andelson, Loya, Ruud & Romo, a Professional Law Corporation in Cerritos, California; telephone (562) 653-3200; Website www.aalrr.com. Thank you to our Underwriters: B&B Framing, Inc. County Line Framing Lucas & Mercier Construction Preferred Framing, Inc. Rancho Framing, Inc. Select Build T.W.R. Framing Trico Framer, Inc. Page 20 CFCA Newsletter CFCA Newsletter Response Letter to Builders Regarding Drywall Finishes Page 21 The CFCA Board of Directors drafted the letter contained below which addresses a bulletin issued this year that recommends framing contractors make adjustments in their framing practices to eliminate uneven drywall finishes due to metal straps. If your builder has approached your organization regarding this issue, please use the following letter for your response. If you need an electronic version of this letter, please contact either Jodi Blom or Melanie Thomson. (Your Company Name on Company Letterhead) RE: RESPONSE TO RDA BULLETIN ON METAL STRAPS In a recent article contained in the Residential Drywall Bulletin entitled “Installation of Drywall over Metal Straps,” problems and recommendations were made to improve the quality of the finished drywall product. As a member of the California Framing Contractors Association (CFCA), we would also like to contribute some additional comments and recommendations that we believe will address the problem of installing and finishing drywall over non-level surfaces that would improve the end product for the building industry. The CFCA recognizes that the building code requirements have changed over the past few years which increase the use of metal straps on both the underside of ceiling joists or trusses and on walls making it more challenging for drywall contractors to create visually straight surfaces. This is more of a problem where angled lighting magnifies any inconsistencies. The article argues that adding a nailer to the joist or truss where there is a parallel strap will solve the issue. However this practice creates another problem, the perpendicular ends of that nailer at the ceiling and wall intersection will create a dip in the ceiling line. The article argues that cutout areas filled with “Hot Set” are ineffective; however, it is our opinion that if “back cutting” the drywall is not possible, then resilient channel would be the only viable solution for a straight ceiling line. If the back cutting is done properly, filling with “Hot Set” would not be necessary. The Gypsum Association guidelines recommends in Section GA-214-96 entitled “Recommended Levels of Gypsum Board Finish” that where imperfections are most noticeable, such as in illuminated ceiling areas, “…a skim coat be applied over the entire surface to fill imperfections in the joint work, smooth the paper texture, and provide a uniform surface ...” (page one). We believe that this is the most consistent solution to creating a finished product that improves the quality and durability of the finished drywall product. Proper paint finish and appropriate paint coverage will also diminish noticeable flaws in any surface area. Because the framing of the home is completed in the early stage of the home’s construction, it is impossible to determine where lighting or illumination will occur in the various areas of the home until the drywall is installed and complete. We feel this can best be addressed prior to installation of the drywall and after rough electrical has been completed. The RDA recommends that shims are needed where hardware has been installed. If the builder believes this is the better solution then we would recommend that the shims be installed by the drywall company of record. Page 22 CFCA Newsletter Page 23 CFCA Newsletter Burbank Branch 2901 Thornton Ave. Burbank, CA 91504 Ph: 818-842-3667 Fax: 818-842-3668 Signal Hill Branch 2855 Walnut Ave. Signal Hill, CA 90755 Ph: 562-427-7250 Fax: 562-427-8366 Riverside Branch 1672 Palmyrita Ave. Riverside, CA 92507 Ph: 951-248-1200 Fax: 562-427-8366 Corona Branch 650 Rimpau Ave. Corona, CA 92879 Ph: 951-272-3146 Fax: 951-272-9237 CFCA Newsletter Page 24 Page 25 2008 CFCA Framing Contractor Members (Listed in alphabetical order) Debbie Adams Nicholas Lane Contractors, Inc. (714) 630-7630 Adam Aguilar Select Build Northern California (707) 249-2291 Frankie Allen Preferred Framing, Inc. (909) 291-8061 Scott Anderson Surco Development (951) 785-6214 Craig Backstrom Surco Development (951) 785-6214 Mark Benedetti Select Build Southern California (760) 770-3303 Tim Boggess MBC Construction, Inc. (714) 437-0803 Gene Bolton Pinnacle Builders, Inc. (916) 372-5000 Tom Brooks BCI Framing & Drywall (714) 282-2300 Joe Bunker B&B Framing, Inc. (951) 653-7680 Ronald Buroker Madera Contractors (951) 677-1844 Robert Calhoun Calhoun Construction, Inc. (916) 434-8356 Thomas Calhoun Calhoun Construction, Inc. (916) 434-8356 Dennis Cardwell Coast Framing, Inc. (951) 734-3898 Wayne Carey C.W. Construction, Inc. (909) 989-9099 Brian Christianson Cal Coast Construction (805) 987-4062 Glen Davies GDT Framing, Inc. (951) 273-7000 Dale DeCarlo Preferred Framing, Inc. (909) 291-8061 Dennis DeLucio RND Construction, Inc. (760) 599-6400 CFCA Newsletter Bill Dickinson County Line Framing (909) 795-7798 Patrick McCarthy McCarthy Framing Construction, Inc. (310) 219-3038 Rick Eberhardt Ridgeline Framing Corp. (925) 606-1012 Rick Mercier Lucas & Mercier Construction, Inc. (949) 589-4480 Neal Drinkward Elliott/Drinkward Construction, Inc. (310) 534-4554 James Elliott Trico Framers, Inc. (951) 278-1393 Matthew M. Ellison Ellison Framing, Inc. (925) 634-8576 Leann Evoniuk Ellison Framing, Inc. (925) 634-8576 Frank Mercier Lucas & Mercier Construction, Inc. (949) 589-4480 Greg Minor Greg Minor Construction (760) 745-0673 Bill Montalvo Mon-May Enterprises, Inc (909) 874-2372 Steve Mosiman Sheehan Construction, Inc. (707) 603-2610 Marc Fabre BCI Framing & Drywall (714) 282-2300 Ken Munson Lucas & Mercier Construction, Inc. (949) 589-4480 Howard Haig Hondo Construction & Dev./Howard Haig, Inc. (951) 845-3007 Jim Post Preferred Framing, Inc. (909) 291-8061 Howard Horrocks Pinnacle Builders, Inc. (916) 372-5000 Thomas W. Rhodes T.W.R. Framing (951) 279-2000 John Ford Ford Framing Company, Inc. (909) 773-0303 Dave Hale Rancho Framing, Inc. (951) 688-1391 Kurt Jordan RND Construction, Inc. (760) 599-6400 Robert Keele WestCor Construction (909) 796-8900 Donna Porter Coast Framing, Inc. (951) 734-3898 Paul Rakowski Cal Coast Construction (805) 987-4062 John Romero JR Framing, Inc. (951) 340-1999 Loren Sextro Serfin Construction, Inc. (562) 438-2683 Richard Kimball Quality Structures, Inc. (951) 296-5655 Scott Shaddix Nicholas Lane Contractors, Inc. (714) 630-7630 John Lewis Select Build Southern California (760) 770-3303 Steve Smith Stevco Framers, Inc. (951) 697-0144 David Marsh Select Build Southern California (858) 486-2471 Jim Snodgrass CBC Framing, Inc. (818) 718-2094 Rocky King Rockwell D. King Construction, Inc. (760) 598-9500 Roger Marin RJM Construction, Inc. (909) 794-8853 Steve Marshall Rancho Framing, Inc. (951) 688-1391 Doug Smith EBI Framing (909) 605-6691 Valerie Smith Stevco Framers, Inc. (951) 697-0144 Ron Stettler Surco Development (951) 785-6214 CFCA Newsletter Amy Strommer T.W.R. Framing (951) 279-2000 David Tudor GDT Framing, Inc. (951) 273-7000 Dave Van Wicklin Select Build Northern California (916) 724-5000 Ben Viloria Viloria Construction (949) 859-3486 John Vojtech CBC Framing, Inc. (818) 718-2094 John Volkman Select Build Northern California (916) 724-5000 Ray Wakeham RND Construction, Inc. (760) 599-6400 Harold Watson Select Build Southern California (951) 277-4023 John Williams Rancho Framing, Inc. (951) 688-1391 Steve Wilson Socal Framing, Inc. (714) 978-7871 2008 CFCA Framing Associate Members (Listed in alphabetical order) Dick Harris Wesseln Construction Co., Inc. (714) 772-0888 Fred Hovenier Laurence-Hovenier, Inc. (909) 736-2990 Ron Laurence Laurence-Hovenier, Inc. (909) 736-2990 2008 CFCA Associate Members (Listed in alphabetical order) Jeremy Agrelius Grove Lumber (909) 947-0277 Dennis Ascencio HCS-Cutler (909) 987-0094 Bud Barr White Cap Construction Supply (714) 259-1913 Randy Beck White Cap Construction Supply (800) 286-7607 Ken Bell Simpson Strong-Tie Co., Inc. (714) 738-2062 Page 26 Jason Besse 84 Lumber Co. (925) 828-8410 Rusty Goger PRO Installer - Schnee-Morehead, Inc. (909) 930-2715 Julie Branstetter ABD Insurance & Financial Services, Inc. (310) 543-9995 Carlos Gonzalez Dixieline Lumber Co. (619) 684-4600 Mark Boone Champion Lumber Co. (951) 684-5670 Dan Burkhart Quik Drive USA (Simpson Strong-Tie) (714) 738-2166 Rick Carwile California Forklift Co. (714) 635-7911 Eric Golden California Forklift Co. (714) 635-7911 David Goodin Hardy Frames, Inc. (805) 477-0793 Dee Dee Graham Louisiana-Pacific Corporation (916) 663-4115 Diane Chambers ORCO Construction Supply Co., Inc. (909) 824-1244 Joel Graves ABD Insurance & Financial Services, Inc. (949) 509-6515 Ken Cloyd California Truss Company, Inc. (951) 657-7491 Paul Haacke Grove Lumber (909) 947-1312 Curtis Claire Universal Truss, Inc. (951) 634-1068 David Gross 84 Lumber Co. (949) 295-3283 Tom Couch Boise Engineered Wood Products (916) 363-2429 Brian Haena USP Structural Connectors (916) 983-5257 Bill Dage ORCO Construction Supply Co., Inc. (909) 824-1244 Steve Hawkins California Truss Company, Inc. (951) 657-7491 Tommy Ebberts Grove Hardware (909) 947-0277 Tom Herold Safety Compliance Company (909) 239-9442 Steve Croll Grove Hardware (909) 947-0277 Mark Davis iLevel by Weyerhaeuser (909) 465-1206 James Harrington James Truss Co. (951) 736-3962 Kirk Herold Safety Compliance Company (951) 924-7926 Kathy Ellis Hardy Frames, Inc. (805) 477-0793 Will Higman Reliable Wholesale Lumber, Inc. (714) 848-8222 Jorge Espinoza 84 Lumber Co. (909) 820-3213 Bryant Hope Paslode (800) 468-7403 Ron English James Truss Co. (951) 736-3962 Charles W. Hippenstiel Safety Compliance Company (951) 924-7926 Gary Foster White Cap Construction Supply (714) 258-3300 Brian Hurdle Collins Companies (916) 786-9161 Bill Gates GatesCo Enterprises, Inc. (909) 477-6630 Brent Johnson Home Lumber Company/Stock Building Supply (909) 381-1771 Steve Foster MFM Building Products (800) 882-7663 Stephani Jarvis Collins Companies (602) 476-7390 Page 27 Milton E. Johnson Home Lumber Company/Stock Building Supply (909) 381-1771 Dennis Pettigrew Universal Truss, Inc. (760) 744-7860 CFCA Newsletter Lovell Williams iLevel by Weyerhaeuser (909) 879-2523 Jim Julian Champion Lumber Co. (951) 684-5670 Travis Post Comet Engineering, Inc. (909) 322-8563 Keith Williamson InterWest Insurance Services, Inc. (800) 232-9181 Jeff Konek Hardy Frames, Inc. (805) 477-0793 Bill Reavely Boise Building Solutions (951) 303-8351 Misty Wootten Reno Hardware & Supply, Inc. (562) 427-7250 Bob Kircher Las Plumas Lumber & Truss Co., LLC (951) 681-2211 Jeff Qualle Universal Truss, Inc. (209) 869-4545 Jim Lawrence Lockton Insurance Brokers, Inc. (213) 689-0541 Randall C. Richards Reliable Wholesale Lumber, Inc. (714) 848-8222 Rock Lee Dixieline Lumber Co. (619) 684-4000 Kevin Schoonhoven InterWest Insurance Services, Inc. (408) 522-5500 John Lightfoot InterWest Insurance Services, Inc. (800) 232-9181 Bob Seiple PRO Installer - Schnee-Morehead, Inc. (972) 355-1014 Tom Lopez iLevel by Weyerhaeuser (909) 877-6100 Ted Smith Champion Lumber Co. (951) 684-5670 Loren Lee 84 Lumber Co. (866) 282-3484 Walter Lee Lockton Insurance Brokers, Inc. (213) 689-2305 Galen Longley Simpson Strong-Tie Co., Inc. (209) 944-1068 Mike Ruede California Truss Company, Inc. (951) 657-7491 John Schuster California Forklift Co. (714) 635-7911 Tammy Simonds iLevel by Weyerhaeuser (760) 434-3374 Michael Wootten Reno Hardware & Supply, Inc. (562) 427-7250 Mike Young ORCO Construction Supply Co., Inc. (909) 824-1244 2008 RCA Members (Listed in alphabetical order) Debbie Adams Lane Framing Systems, Inc. (714) 630-7686 John Chipinka, Jr. Kane Construction (818) 773-6330 Leo Cook B.B.B. Industries (661) 257-4112 Wayne Crawford Santa Clarita Concrete (661) 257-4100 Rick Denger New Mid-Coast Builders, Inc. (805) 484-3157 Carlton Elliott Empire Development (949) 646-7400 Bob Lowe Louisiana-Pacific Corporation (702) 523-7192 Frank Snoddy USP Structural Connectors (909) 981-3093 Gary Messenger No Leaks, Inc. - MFM Building Products (909) 622-0654 Richard Stamsek James Hardie Building Products (661) 492-6068 Ernie Glasgow Letner Roofing Co. and Ramish Supply Co. (714) 633-0030 Mitch Mitchell Reliable Wholesale Lumber, Inc. (714) 848-8222 Tony Tarantino Paslode (800) 468-7403 Doug Hoppe Superior Framing, Inc. (805) 462-2113 Chris Thoman Simpson Strong-Tie Co., Inc. (714) 738-2065 Dan Knechtli Side-Co. (661) 269-0958 Cynthia Marriot ABD Insurance & Financial Services, Inc. (949) 509-6515 Pete Metzen PRO Installer - Schnee-Morehead, Inc. (909) 930-2715 Brent Spates Spates Fabricators (760) 397-4122 Patrick Stewart Reno Hardware & Supply, Inc. (909) 272-3146 Wayne Nailon Home Lumber Company/Stock Building Supply (909) 381-1771 John Taylor Louisiana-Pacific Corporation (916) 624-3947 Timothy J. Noonan Lockton Insurance Brokers, Inc. (213) 689-0541 Tom Wall Paslode (800) 468-7403 Kurt Nicolai Reno Hardware & Supply, Inc. (562) 427-7250 Kim Fromer Fromer, Inc. (818) 341-3896 Ed Holmes Cove Builders, Inc. (714) 436-2973 Larry Kern Weslar, Inc. (661) 702-1362 Gary McArthur G.L.M. Company (562) 787-0257 CFCA Newsletter Dear CFCA Members: Attached is the new I-9 form. You can also get both the form and the employer handbook at www.uscis.gov or you can call (800) 870-3676. For questions on immigration laws, regulations, and procedures, call the National Customer Service Center at (800) 375-5283. Five documents have been removed from List A of the List of Acceptable Documents: 1. Certificate of US Citizenship (Form N-560 or N-570) 2. Certificate of Naturalization (Form N-550-or N-570) 3. Alien Registration Receipt Card (Form I-151) 4. The unexpired Reentry Permit (Form I-327) 5. The unexpired Refugee Travel Document (Form I-571). One document was added to List A of the List of Acceptable Documents: 1. Unexpired Employment Authorization Document (I-776) Employers are encouraged to use the new I-9 Form immediately for new hires and when re-verifying employees when their existing documents have expired. Employers do not need to complete new forms for existing employees. The revised Form I-9 will become effective once the notice is published in the Federal Register but employers are encouraged to begin using this immediately. Jodi Blom, CFCA Executive Director Page 28 Page 29 CFCA Newsletter CFCA Newsletter Fall Protection Guidebook For additional copies of the Fall Protection Guidebook, please contact AlphaGraphics at (909) 989-8550 or via e-mail at us117@alphagraphics.com Members will receive the book at cost @ $24.95 each, plus shipping & handling. Non-Members will receive the book @ $49.95 each, plus shipping & handling. You will also receive a 10% discount when ten or more copies are ordered. Page 30 C009G Framer Safety Video English or Spanish 16min • $69.95 Discount to newsletter recipients – $50.00 Orientation program for persons assigned to framing. Meets training requirements of exposure to general hazards. To Order Contact: Gail at Digital 2000, Inc. (800) 334-1523 Fax (281) 988-8900 www.trainingprofessionals.com Page 31 CFCA Newsletter CFCA Newsletter Page 32 General Member Benefits 2008 New Member Benefit – The CFCA Board of Directors will be hiring an expert on immigration to assist our members in complying with the Department of Homeland Securities and the U.S. Immigration and Custom Enforcement Division requirements. The attorney will provide educational seminars and provide information through the quarterly newsletter in 2008. Representation with Cal/OSHA and Other State Agencies – Kevin Bland, CFCA Legal Counsel, and Jodi Blom, CFCA Executive Director, attend meetings on behalf of the members at the various State agency meetings held throughout the State and the Cal PASC Government Affairs Committee. Kevin Bland is also a member of the Cal/OSHA Directors Advisory Committee and represents the Association at the AGC Safety Council. Reduced Legal Costs – As a CFCA member, you receive a reduced fee of 10% off the regular hourly charge for Kevin Bland, our CFCA Legal Counsel. You can reach Kevin Bland at (949) 861-4100. Safety Committee – Our Safety Committee, made up of Framing Contractor Safety Professionals, developed an extensive training for foremen that replaces the Fed/OSHA 10 Course. The training is specifically geared to residential framing. The 8 Core Elements of Real World Safety & Health for Residential Framing is offered through the Safety Center. For Train-The-Trainer or open enrollment classes, please call (800) 825-7262. Safety Tailgate Trainings – The CFCA Safety Committee has developed a series of tailgate trainings that are available to its members through the CFCA website. Please contact Jodi Blom or Melanie Thomson (our Membership Coordinator) for assistance if you have lost your access code. Safety – Safety Compliance Company will provide our members with a comprehensive Injury Illness Prevention Plan (IIPP) at a reduced rate of $700 and a site inspection for $225 per site. Please contact Tom Herold at (800) 901-7926. Training & Education – We have established a committee to develop training for our members on safety, carpentry, and new products for our industry. Currently, we provide education through our General Membership meetings on contract language; wrap insurance, and other related topics. We also provide members with working documents for their company’s use, such as sample IIPP, Code of Safe Practices, contract language guidelines, Nail Gun Safe Practices Guidelines, and addendums. As a CFCA member, you can retrieve these documents on our web site at www.californiaframingcontractors.org. Fall Protection Standard Pictorial Book – This comprehensive manual explains the new Title 8, Section 1716.2 Residential Framing Fall Protection Standard adopted by the Cal/OSHA Standards Board in August of 2004. Associate Member Benefits Advertising – Associate Members, suppliers and manufactures who support our industry, receive advertising in our quarterly newsletter and on our website. They also are encouraged to provide newsletter articles that would be informative to our members and participation in our General Membership meetings. CFCA Office – (916) 485-3367 California Framing Contractors Association Date: _____________________ Sponsor (if any): __________________________________ Company: ___________________________________________________________________________ Contact: Title: ________________________________ Email: Website Address: Fax & Voice Telephone Numbers: New FCC rules require associations to get explicit permission to send faxes to members. Please check the box at right to receive meeting notices and other time-sensitive information by email, phone, post and fax from PERMISSION GRANTED (check box) CFCA. TYPE OF MEMBERSHIP GENERAL MEMBERSHIP or UNION FRAMING CONTRACTOR ASSOCIATE ASSOCIATE MEMBERSHIP ANNUAL DUES $ 3,500.00 Framing Contractor. $3,500.00 includes halfpage ad in our newsletter Suppliers, manufactures, and services supporting framing contractor industry $6,000.00 includes fullpage ad in our newsletter Underwriter Level CRITERIA Annual dues plus $5,000.00 Your company logo will also appear on the CFCA web site. Underwriters names will appear on all of the CFCA promotional material, newsletter, web site, and advertising Dues structures are subject to change without notice Please make your check payable to CFCA nd Remit to: 3636 American River Drive, 2 Floor, Sacramento, CA 95864 For questions, call Jodi Blom at (916) 485-3367 or email to jblom@iwins.com. California Framing Contractors Association cut here Mailing Address: California Framing Contractors Association Headquarters 3636 American River Dr., 2nd Floor Sacramento, CA 95864 (916) 485-3367 Toll Free (866) 452-8110 CFCA Contact Information Jodi Blom Executive Director (916) 485-3367 jblom@iwins.com Kevin Bland, Esq. CFCA General Counsel (949) 861-4100 kevin.bland@gblaws.com Melanie Thomson Membership Coordinator (916) 435-8525 melanie@thomson-business.com
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