Issue link: http://psai.uberflip.com/i/752214
WEEKLY EDITION November 16, 2016 New California Restroom Law May Affect Some PSAI Members Recently, some PSAI Members have called looking for clarity on the change to the CDL law in California, enforcement issues, and advice on how to most effectively manage it. Earlier this year the PSAI sponsored a telephone meeting open to any Member Company doing business in California to learn about the impact of the law on their operations. Now that more time has passed, we are starting to get a clearer picture of the situation. As a reminder, in California, drivers of vehicles equipped with tanks having a total capacity of 1,000 gallons (waste + fresh water tanks) or more, regardless of vehicle weight, are now required to possess a CDL license with a tank endorsement. The law was passed in 2014; enforcement began in 2015. The new law was not widely publicized, nor to our understanding, was it communicated to law enforcement officers until just recently . As a result, cer tain jobs in California that previously did not require a CDL now do require a CDL. This has many economic implications to the industry and California M embers. As you know the PSAI continually makes a concerted effort to help educate members on the cost of doing business. This requirement will likely increase operating costs in multiple ways. One PSAI Member Company estimates the impacts as: 1) Wages will likely escal ate. Premium wages for a higher skilled Service Techni cian is estimated to be $3.50 – $ 5.00 per hour higher (not including overtime wages) in order to attract and retain personnel who have or can attain CDL licenses. 2) Administrative overh ead will increase. Tracking of hours of s ervice and related administrative and training costs for medi cal certificates, brake endorsements, etc. will drive up overhead costs. 3) Turnover and recruiting costs will increase. Companies will like experience higher turnover and recruiting challenges due to hiring service technicians with more employment options and higher demand for their skills. This is a very high - impact issue when you consider the cost of turnover could represent as much as 3 - 6 months of pay when you factor in wages, overtime, and business losses due to customer dissatisfaction during the h iring/onboarding process. CONTINUED ON PAGE 2