What’s The Deal With California’s Regulatory Environment?
How is it possible that the US state with the highest number of Fortune 500 companies is also consistently ranked the worst state in which to do business?
Welcome to California, land of opportunity, lawsuits, wealth, unemployment, highways, droughts, earthquakes, agriculture, Hollywood, Silicon Valley, farmland, beaches, deserts, forests, national parks and crowded urban centers. Or, to put it simply: Welcome to California, land of contradictions.
For years, companies have alternately benefited from and bemoaned California’s business climate. While a broad population of consumers and a constant influx of skilled workers make it easy to build a business, the state’s complex and onerous regulatory laws make it difficult to survive and achieve sustained growth.
Certain industries fare worse (or is it better?) than others. Take automotive dealerships. California is home to the country’s highest concentration of auto dealers, whose transactions represent 18% of the total retail sales in the state, and yet these companies must meet strict labor and environmental standards—in addition to the myriad federal regulations enforced on dealerships nationwide. I’m not just referring to paid sick leave, overtime and anti-discrimination rules, but laws mandating the temperature of toilet seats. Really. On top of that, businesses in California are 40% more likely to face employee lawsuits on average.
What’s the deal? Why do California businesses have to deal with panoply with regulations unheard of in other states? There are a few reasons:
California: land of opportunity, lawsuits, wealth, unemployment, highways, droughts, earthquakes, agriculture, Hollywood, Silicon Valley, farmland, beaches, deserts, forests, national parks and crowded urban centers.
It all adds up to a lot of uncertainty, which leads to a lot of laws, which leads to a lot of exposure and risk of noncompliance for companies doing business in the state.
Fortunately, industry experts like Auto Advisory Services are dedicated to helping organizations stay ahead of California’s evolving regulations. We launched an on demand webinar with AAS all about the next generation of exposure for California dealerships. Join us as we discuss compliance concerns and the tools you’ll need to keep your compliance house in order. Learn more about the webinar and sign up here.