The Newsletter of the Roofing Contractors Association of California • Summer 2014

RCAC Executive Director’s Report: “Moving the Needle”As I prepared to write this issue’s Executive Director’s Report, I considered the many initiatives that RCAC either has on its plate or has completed over the years. In some cases, such as the fight against the underground economy and employer insurance fraud, we have won various battles (e.g., AB 881 and successive legislative efforts), but the war wages on as cash pay, misclassification of employees and under reporting of payroll continues.

In other cases, such as legal proceedings (amicus briefs) to protect lien rights and various legislative efforts aimed at indemnity reform, retention reform, and more, we have achieved impressive levels of success over the years.

In still other instances, such as solar installations by roofers, metal roofing restrictions, Title 24, and CARB regulations, the battles continue in one form or another.

Recently, RCAC was asked to join in an effort to attack the problem of employee workers’ compensation fraud. While most agree that this is a significant and very real issue, the sentiment of many is that the problem is so overwhelming and pervasive that we stand little chance at success, particularly in a state where labor wields so much power. However, RCAC has not been known to run from a battle when the cause is justified and for the greater good, no matter how long the odds.

All of this raises the question: “How do we, as an association and an industry, measure success?” Is it measured by a unanimous victory in which the problem or issue is completely eradicated? Or, more realistically, can it be measured by incremental improvements in conditions, what one might refer to as “moving the needle”? I tend to believe the latter.

To think that we stand a chance of completely eliminating fraudulent workers’ compensation claims is to join in the highest form of Tom Foolery. But, to open the dialog, brainstorm with other stakeholders within in the roofing industry and in other industries, and make incremental improvements to the system is worthwhile and has the potential for “success.”

It is an effort that will certainly require alignment with other trades and industries facing similar problems, and it is yet unknown whether the path to progress will come through legislation, legal action, regulatory means, or some other “creative” strategy. But, it is an effort that is worthy of our time and resources.

Executive Director’s Report .................................... 1

Board of Directors ............................................ 2

Capitol Club ....................................................... 3

RCAC Safety Video Library .................................. 3

Calendar of Events ................................................. 3

Affordable Care Act ............................................. 3

In this issue...

Workmans Compensation ................................... 3

Under the Dome .................................................. 5

Indemnification .............................................. 5

Outdoor Workers ................................................ 9

Prevent Skin Cancer ............................................ 9

RCAC Golf Tournament Registration ...................... 12

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Whether progress will come in the form of greater awareness at the Legislature, new laws or regulations protecting employers, sanctions against unscrupulous attorneys or medical practitioners, an employee who thinks twice before filing an unjustified claim, or some other step in the right direction, those all qualify as “moving the needle,” and that is a measure of success in my book.

The effort to fight employee insurance fraud is still very much in its infancy, but we will have ongoing updates as the cause gathers momentum and focus.

As always, please call on the RCAC staff if you have any needs. We are here to help and to make your life as a roofing contractor, supplier or manufacturer a little easier.

RCAC is working on your behalf on many fronts, and we wish you a prosperous summer.

Marc ConnerlyExecutive Director

2014 RCAC Board of DirectorsEXECUTIVE COMMITTEE

Steve Reardon – PresidentRex Souders – Vice President

Christian Madsen – Secretary/TreasurerRichard Lawson – Past President

DIRECTORSWilliam Baley • Allen Brooks * John CleasbyBruce Fryer • Aaron Hill * Doug Hollander

Brett Maurer * Dave Stefko • Johnny Zamrzla

RCAC CONTACT INFORMATIONConnerly & Associates Inc.

2215 21st St.Sacramento, CA 95818

(916) 456-4790 Fax: (916) 456-7672Ilene Connerly — Administrator

Marc Connerly — Executive DirectorJulie Cisneros — Senior Consultant

Corinne La Fazia — Membership Director

RCAC SAFETY DIRECTORFor safety-related questions and information

Marc Connerlymconnerly@connerlyandassociates.com

RCAC/NRCA MEMBERSHIP INFORMATIONCorinne La Fazia

NRCA and RCAC West CoastMembership Director

(909) 305-4996clafazia@nrca.net

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California RoofPAC CAPITOL CLUBCalifornia RoofPAC funds RCAC’s legislative advocacy efforts. The following individuals and businesses have

generously donated to California RoofPAC:

(Over $1,000 in contributions this year):Dave Stefko, Eberhard Roofing Co.

Steve Reardon, Enterprise Roofing ServiceRichard Lawson, The Lawson Roofing Co., Inc.

Christian Madsen, Madsen Roofing & WaterproofingJoe Zamrzla, Stone Roofing Co., Inc.

Rex Souders, Tecta America Southern CaliforniaJohnny Zamrzla, Western Pacific Roofing Corp.

Gold Sponsors

Silver Sponsors

Risk Management Services

Plat inum Sponsors

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RCAC Offers Safety Video LibraryAs part of our safety program, RCAC is pleased to offer a library service enabling California roofing contractors to borrow videos aimed at educating employees about a variety of roofing industry safety topics. Most videos are available in both DVD and VHS formats, and many are offered in both English and Spanish.

For borrowing instructions and a complete list of available titles, visit www.rcacal.com and click on “Safety Program” on the lower left side of the page. You may also email RCAC Safety Coordinator, Marc Connerly, at mconnerly@connerlyandassociates.com or call the RCAC office at (916) 456-4790.

Upcoming Calendar of EventsBoard of Directors MeetingThursday, July 24, 10:00 a.m.Black Bear Diner, 2700 El Centro Rd., Sacramento

18th Annual RCAC Challenge Cup Golf TournamentFriday, August 8, 11:30 a.m. registration, 1:00 p.m. shotgun startMetropolitan Golf Links, 10051 Doolittle Dr., Oakland

State Fund is holding several free seminars for employers that teach how to prevent costly injuries by finding and fixing workplace hazards. The Find It, Fix It seminars will take place at the following locations and times:

Friday, July 18, 2014, 10:00 a.m. – 12:00 p.m.Humboldt Bay Aquatic Center921 Waterfront Dr., Eureka, CA 95501Registration deadline: July 11, 2014 Wednesday, August 6, 2014, 10:00 a.m. – 12:00 p.m.San Jose Masonic Hall2500 Masonic Dr., San Jose, CA 95125Registration deadline: July 28, 2014 Wednesday, August 20, 2014, 10:00 a.m. – 12:00 p.m.Central Coast Builders Association20 Quail Run Circle, Salinas, CA 93407Registration deadline: August 10, 2014 Wednesday, October 22, 2014, 10:00 a.m. – 12:00 p.m.State Fund Regional Office6000 State Farm Dr., Santa Rosa, CA 94928Registration deadline: October 12, 2014

Summer Affordable Care Act WebinarsIn our last issue of California Roofing, we posted a list of upcoming webinars on the Affordable Care Act (ACA), presented by the Small Business Administration (SBA). In case you missed that list or were unable to participate in a webinar, below is a list of similar ACA webinars being presented this summer.

Each week, small business owners can learn the basics of the Affordable Care Act and how they can enroll in small business health insurance marketplaces. Other topics discussed include insurance reforms, the small business health care tax credit, and employer shared responsibility provisions. SBA representatives help small business owners understand the facts of the Affordable Care Act so they can make informed decisions about providing health insurance for their employees.

The Affordable Care Act 101 takes place every Thursday at 11 AM PT. Below are the registration links for upcoming presentations.

• Thursday, July 17 at 2:00 PM ET: Click to Register• Thursday, July 24 at 2:00 PM ET: Click to Register• Thursday, July 31 at 2:00 PM ET: Click to Register• Thursday, August 7 at 2:00 PM ET: Click to Register• Thursday, August 14 at 2:00 PM ET: Click to Register• Thursday, August 21 at 2:00 PM ET: Click to Register

For more information on how the new health care law affects small businesses, check out www.businessusa.gov/healthcare.

Updated Time of Hire Pamphlet from Division of Workers’ CompensationThe Division of Workers’ Compensation (DWC) has posted an updated time of hire pamphlet on its website at http://www.dir.ca.gov/dwc/Employer.htm. There you will find pdf and text versions in both English and Spanish.

The pamphlet now has the new predesignation of personal physician and notice of personal chiropractor or acupuncturist forms that are effective on July 1, 2014. It meets the requirements under Labor Code section 3551 to notify new employees about California workers’ compensation rights and benefits either at the time of hire or by the end of the first pay period.

The time of hire pamphlet was created in 2011 to help employers and claims administrators ensure employees know what to do in case of workplace injury. It was modified in 2013 to reflect changes made to California’s workers’ compensation system by SB 863.

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The following companies generously support the efforts of RCAC:

www.southcoastshingle.com www.vdaconsulting.com

www.firestonebpco.com

www.wgbender.com

www.westerncolloid.com

www.ajg.com

www.paccoast.comwww.usg.com

www.duro-last.com

www.roofingsupplygroup.com

www.certainteed.com/CertainTeed/Undefined/Roofing

www.cleasby.com

www.dataforma.com

www.fordwholesale.com

www.lundaythagard.com

LUNDAY-THAGARDCOMPANY

www.andreini.com

www.nationalcoatings.comEmail: stuart.pendleton@gmail.com

www.malarkeyroofing.com

www.roofmaster.com

www.4flyers.com

www.usa.sarnafil.sika.com www.statefundca.com

www.alliedbuilding.com

www.gaf.com

www.sunmizer.com

www.eagleview.com

www.dupont.com

www.lapolla.com

This pamphlet can be customized as long as the text meets the “time of hire” legal requirements. Title 8, California Code of Regulations section 9883, allows insurers, employers or private enterprises to prepare and publish the pamphlet upon prior approval of the form and content of the pamphlet by the Administrative Director. An entity may no longer use a previously approved pamphlet with the old predesignation forms. A revised pamphlet should be submitted for approval with the new forms. Claims administrators will be provided a grace period until September 1, 2014 to send an updated pamphlet.

Under the DomeLegislative Report

It has been an unusually quiet session at the Capitol thus far in 2014, but there are a few bills worthy of discussion.

AB 1522 is opposed by RCAC, but is a bill that has momentum and likely stands a good chance of passage. The bill, which has passed the Assembly and the first committee in the Senate, would require employers to grant paid sick days to employees who work more than 30 days in a calendar year. The proposal allows an employer to limit the number of sick days used in a year to three (3) and prohibits employers from discriminating or retaliating against employees who request paid sick days. The bill would not apply to those with a collective bargaining agreement.

AB 1705 is supported by RCAC and is a bill that also appears headed for success. The bill aims to close a loophole in recently passed legislation limiting retention proceeds on public projects. The loophole allows public entities to exceed the 5% retention cap by declaring a project “substantially complex,” and this item would require justification for that declaration and also would define projects that are “not substantially complex.” The bill is headed for a vote on the Senate floor.

AB 2188 is another bill supported by RCAC which stands a good chance of success, having passed the Assembly and heading for the Senate Appropriations Committee. The bill would require local municipalities to adopt a streamlined permit process for small residential rooftop solar energy systems and would require inspections of rooftop systems.

AB 2376, a measure being watched by RCAC, has passed both houses and is headed for the governor’s desk. It would require bid documents for state construction projects that include a master builder’s risk insurance program to specify the contractor’s deductible under the program.

AB 2416, which is opposed by RCAC, is headed to the Senate Appropriations Committee. This bill would authorize an

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employee to record and enforce a wage lien upon real and personal property of an employer, or a property owner, for unpaid wages, other compensation owed the employee, and certain penalties, interest, and costs.

AB 2471, which is supported by RCAC and is also headed to the Senate Appropriations Committee, would require public entities to issue prompt change orders or be liable for the completed work if the change order is not completed promptly.

SB 1007 is supported by RCAC. The proposal requires the Superintendent of Public Instruction and the State Board of Education to consider ways to expand career technical education programs in middle and high schools in the state. The measure has passed the Assembly and is headed for the Senate Education Committee.

SB 1360 was signed by the Governor on June 28. The bill prohibits employers from requiring an employee to work during a mandated meal or rest or recovery period (including a cool down period afforded an employee to prevent heat illness), and provides that those break periods shall be counted as hours worked, for which there shall be no deduction from wages. The law will take effect on January 1, 2015.

The Legislature breaks for summer recess at the close of business on July 12 and reconvenes on August 12.

What Does “Indemnification” Mean And Why Is It Important?Provided courtesy of Warren G. Bender Company. For more information, contact Bob Babcock at (916) 380-5347 or rbabcock@wgbender.com.

Of the many parts of a construction contract, one of the most important (besides price) is the “indemnity, insurance, and hold harmless” section. In this portion of the contract, the parties agree what to do when someone is injured or a building leaks or some other damage occurs, not only during construction, but after the project is completed as well. Thus, many contractors not only require proof of insurance, but have language in the agreement that can shift fault from the owner, developer or general contractor to the subcontractor.

“Indemnify” means to protect against damage, a loss or an injury. A subcontractor who agrees to “indemnify” a general contractor is agreeing to pay the general contractor for its damages and attorney

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Celebrating 75 years in business, Warren G.

Bender Co. is one of the Sacramento region’s

largest independently owned insurance

brokerages. The mission of this family

business is “providing protection, superior

service, and education to those who matter

most – our customers.”

WGBCO clients represent many

industries, such as manufacturing, public

works construction, property development/

management, healthcare and others. “We

know our strengths and grow from that base

without trying to be everything to everyone,”

explains Stephen Bender, President and CEO.

“We’ve journeyed many roads with clients

as they’ve changed their business models

and risk profi les, and continue to provide

guidance to build ongoing relationships and

preserve their bottom line.”

Steve Bender started in the family

business in 1972, learning from his father

Warren, the company founder. In Steve’s 41-

year tenure, the company has grown from

three employees to 42, and is now looking

to WGBCO’s third generation of leadership.

One of Steve’s daughters, Maggie Bender-

Johnson, is Director of Operations, and

nephew, Christopher Bender, manages the

company’s Employee Benefi ts Department.

Both are part of a succession team of fi ve

people who share the passion and vision,

and understand the company’s core values --

family and non-family talent working together

for a successful and robust future.

In 2008, Warren G. Bender Co. moved

headquarters to Roseville after 70 years in

Sacramento, and in 2010, opened a Southern

California offi ce. Though personal insurance

was the company’s mainstay for the fi rst

30-plus years, commercial insurance now

represents about 85 percent of their revenue

base, with personal insurance, employee

benefi ts, and surety as the balance.

“We design insurance and risk

management programs to fi t our clients’

changing needs, and that could be 20 or more

lines of coverage for any given client,” says

Bender of their diverse commercial clients.

“They have a myriad of risks they have to

respond to and we’re the architects for their

coverage.”

“We are fi ercely proud of WGBCO’s

values and history, and are excited about

our next generation of growth and service,”

he concludes. “Every day has its challenges

but at the end of the tough day, we can say

we stayed true to our ethics and our values,

and that’s what will inspire us for another 75

years.”

www.wgbender.comp: 916.380.5300

516 Gibson Drive, Suite 240

Roseville, CA 95678

Warren G. Bender Co.75 years of depth and dependabilityDenise Metz, Chris Bender, Maggie Bender-Johnson, Stephen Bender, Edward Johnson, Roland Guillen

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fees even if there is no fault by the subcontractor. This is one of the most difficult concepts for a subcontractor to understand because even though the subcontractor did everything right on the job, the subcontractor can still be required to pay attorney fees and costs to the general contractor. Therefore, you should read the indemnification clauses in your contracts very carefully, and have an attorney review and amend the clauses in your favor when possible.

Since the early 1970’s, the courts have recognized three general types of indemnification agreements: A Type I clause requires the indemnitor (usually a subcontractor) to be responsible for liability resulting from the developer or general contractor’s negligence or fault (except that there can be no indemnity for the sole negligence or willful misconduct of the general contractor or owner). For example, under a Type I agreement, a subcontractor may have to pay attorney fees and damages to a general contractor who is sued for damages that merely involve or arise from the work of that subcontractor, even if the work was done properly.

Type II clauses form a middle ground. The subcontractor promises to be responsible for the general contractor’s liability arising from the general contractor’s work regardless of who is at fault. But if the general contractor’s active negligence partially caused the damage (i.e., they actually did something wrong) then the subcontractor would not be responsible for that portion of the liability.

Type III are the best for a sub because they are only responsible for those liabilities that are “solely” caused by the subcontractor. In other words, the general contractor is sued because of negligence by the subcontractor and the subcontractor has to take care of the damages and “indemnify” the general contractor for the problems, but only for the subcontractor’s own negligent work.

There are many variations on these categories and many courts say they don’t follow these classifications. Also, there have been changes by the Legislature that limit some of these indemnity clauses (e.g., the first two types of indemnity clauses are not enforceable in residential construction contracts entered into after April 1, 2006).

Along with the indemnity agreement, often a subcontractor is required to have his insurance company add a general contractor and/or owner as “additional insured.” You should talk to your insurance broker about this, but generally an additional insured “stands in the shoes” of the “named insured” (the subcontractor) for coverage “arising from the work of the subcontractor.”

The point is that you should pay attention to the indemnity and insurance provisions in your proposals or construction contracts, and have them reviewed by your attorney. Do not ignore them simply because they look complicated and you don’t fully understand what they mean.

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Heat Illness Prevention for Outdoor WorkersProvided courtesy of Safety Compliance Company. For more information, contact Kirk Herold at (562) 822-7233 or kirkh@safetycompliance.com.

Is your company’s written Heat Illness Prevention Program onsite and available for review by your employees and Cal/OSHA at all times? Cal/OSHA is performing jobsite inspections to ensure compliance with Cal/OSHA T8CCR 3395. Ensure that your employees and supervisors have been trained and understand all aspect of the Heat Illness Prevention Program and that the program is on every jobsite/location.

In addition to the standard Heat Illness Prevention Program requirements, always consider the additional effects of both Personal Protective Equipment (PPE) and Work Severity and Duration.

Personal Protective Equipment (PPE)

PPE can increase the burden of heat load on the body by trapping the heat and not allowing the body to cool. It is important for employees wearing PPE, which may cover the upper or lower body or face, not to work alone in warm or hot conditions. When employees wear this type of PPE in these conditions, it may require you to take additional steps to prevent heat illness including (but not limited to):

• Monitoring employees more frequently• Having employees take more frequent breaks to remove

their PPE to cool down• Ensuring employees drink more water• Providing effective cooling measures (Shade and Other

Cooling Measures)• Adjust work schedules and activities (Work Severity and

Duration)• Seeking additional help from qualified professionals

BEST PRACTICES

Work Severity and Duration Adjustments

In warm or hot weather, try to:• Schedule slower paced, less physically demanding work

during the hot parts of the day and the heaviest work activities during the cooler parts of the day (early-morning or evening).

• Split-up work shifts to avoid work during the hottest part of the day.

• Start the work shift even earlier in the day or later in the evening

• Avoid over time work and double shifts. • Postpone non-essential work to be done until a later time

when it is cooler. • Rotate employees through less physically demanding jobs • Add extra personnel to reduce exposure time for each

employee. • Cut work shifts short or stop work altogether

Be aware that in spite of these measures heat illness can still develop.

Tips For Preventing Field Worker Skin CancerThis year, in the United States, more skin cancers will be diagnosed than lung cancer, prostate cancer and breast cancer combined. One person dies every hour from melanoma, the deadly form of skin cancer. Since roofers spend a significant amount of time in the sun, they have a higher risk of developing sun damage (wrinkles) and skin cancer.

While skin cancer is the most prolific form of cancer, it is also the most preventable. Using good sun protection techniques can help reduce your risk for developing skin cancer and a recent study showed that regular use of sunscreen helps prevent wrinkles.

There are things that field employees can do to reduce the risk of damage to their skin from the sun’s UV radiation. Here are the top 10 tips:

1. Wear sun protective clothing – this includes wide-brimmed hats, long sleeve shirts (sun sleeves), long pants and sunglasses. Look for clothing that has a UPF rating (what SPF is to sunscreen, UPF is to fabrics). Many of these fabrics also offer moisture wicking which can help keep employees cooler. The benefit of UPF clothing is that it creates a nonchemical, physical barrier. Employees don’t have to worry about applying or reapplying sunscreen to that area. We list it first for a good reason!

2. Use a sunscreen with a SPF of 30. SPF only refers to protection from UVB rays and an SPF of 30 blocks 97% of UVB rays. Higher SPF levels become very expensive and only provide minimal additional protection. New labeling requirements from the FDA are considering limiting the maximum SPF rating at 50.

3. Since SPF only relates to UVB protection, be sure the sunscreen says “Protects against UVA and UVB rays” or “Broad Spectrum Coverage.” Regardless of skin type or how dark the skin naturally is, employees should use a sunscreen regularly.

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Contact RCAC Membership Director Corinne La Fazia at(909) 305-4996 for more information.

• 6% discount• Individual dividends paid annually• Open program: use your broker, ours, or call State Fund directly• Quick and easy to qualify and sign up

4. Apply sunscreen 20-30 minutes before going outside and apply a thick, even layer over all exposed skin. Be sure to apply sunscreen to sensitive and hard-to-reach areas, including ears, face, exposed scalp, and lips. Most people do not use enough sunscreen. Apply at least a teaspoon of sunscreen to the face and a golf ball size amount when applying to the whole body.

5. Most sunscreens only last for two hours and then need to be reapplied. A person can’t put sunscreen on in the morning and expect it to last all day long.

6. Use sunscreen before it reaches its expiration date because it can become less effective. If the sunscreen reaches its expiration date…..you are not using enough of it!

7. Seek shade wherever possible…. trees, buildings, canopies and umbrellas.

8. Be sure to hydrate before going out in the sun and keep drinking non-caffeinated beverages during the day. If losing a lot of fluid, drink a sports beverage that can help replace electrolytes. If a person waits until thirsty to hydrate, it is too late.

9. Do a monthly self-exam of the skin. Look for any new or changing moles.

10. See a dermatologist at least once a year for a checkup and more frequently if there is a history of skin cancer or precancerous lesions.

The good news is that the sun doesn’t have to be the enemy if one wears UPF rated clothing, a wide brimmed hat, uses sunscreen, stays well hydrated and takes breaks in the shade. Also, don’t forget sunglasses. Our message is about education, not fear. Go out, enjoy your job, but do it the sun-safe way.

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REGISTRATION FORM18TH ANNUAL RCAC CHALLENGE CUP

FRIDAY, AUGUST 8, 2014NEW LOCATION: METROPOLITAN GOLF LINKS10051 DOOLITTLE DRIVE, OAKLAND, CA 94603

$135 Per Person = Golf, Cart, Lunch, Dinner, Prizes, & MoreRegistration 11:30 a.m. • Box Lunch 12 Noon • Shotgun Start 1:00 p.m.

BBQ Buffet Dinner + Awards & Raffle Immediately Following TournamentFormat: Four Person Scramble

_____________________________________________________________________________________Contact Name Company

_____________________________________________________________________________________Player 1 Player 2

_____________________________________________________________________________________Player 3 Player 4

_____________________________________________________________________________________Address City/State/Zip

______________________________________________________________________________________Phone Email

Payment Information:

_____ Visa or Mastercard_____ Check _____ Bill Me

_____________________________Credit Card #

_____________________________Exp. Date

_____________________________Signature

Options: Total: o GOLF ROUNDS ___ X $135 = $ _________ o DINNER SPONSOR $1,500.00 $ _________ o BOX LUNCH SPONSOR $1,200.00 $ _________o DRINK STATION $1,000.00 $ _________o HOSPITALITY BAG $ 800.00 $ _________o GOLF CARTS $ 800.00 $ _________o HOLE IN ONE $ 500.00 $ _________o CLOSEST TO THE PIN $ 300.00 $ _________o LONGEST DRIVE $ 300.00 $ _________o TEE SIGN $ 250.00 $ _________

GRAND TOTAL $ _________

Cancellations made after July 25, 2014 will be charged for entry fees. Please fax your registration form with payment information to (916) 456-7672, or mail registration form with a check or payment information to: CALIFORNIA ROOFPAC, 2215 21st Street, Sacramento, CA 95818. If you have any questions, please call our office at (916) 456-4790.