After years of navigating California’s jungle of labor regulations, an $18 minimum wage would be kicking companies while they’re down.
California became the first state to reach a $15 minimum wage this year. Before hitting that mark, a ballot measure was already filed to raise it again to $18 per hour – and keep raising it annually without having to consult voters.
This isn’t just political, it’s personal for so many businesses that will get slammed by this on top of California’s constantly changing labor laws.
In addition to the highest state minimum wage, the Golden State notoriously has one of the most complex labor codes in the country. Regulations ranging from break documentation, bathroom signs, and temperature controls keep employers stuck focusing on a 1,100-page labor law digest instead of plans to grow the business.
Such complex regulations come with their own costs. Employers are required to pay into various funds based on the number of employees they have, and the levies increase every year. For example, every employer pays an Occupational Safety and Health Fund surcharge based on employees’ compensation, and the rate went up more than 255 percent this year compared to last January. Another fee for “labor enforcement and compliance” soared by 212 percent this year.
As minimum wages have increased every year, the dollar amount employers owe in regulatory fees has skyrocketed. The costs keep stacking up and now another wage hike is on the horizon. With each...
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