A coalition of nearly 200 business groups has sent a letter to Gov. Gavin Newsom and state lawmakers, calling for renewed focus on policy that helps job creators survive the economic upheaval caused by the COVID-19 pandemic.
Last year’s legislative session produced few laws to help support business owners, many of whom face permanent closure absent some relief from laws like AB 5 and the Private Attorneys General Act (PAGA), John Kabateck, California state director with the National Federation of Independent Business (NFIB) told the Northern California Record.
“The letter is meant to educate and remind our incoming and returning policy makers about the severe impact that business owners are feeling today, and the power they have in their hands to change that,” Kabateck said.
The show of unity underscores the impact of losing leading corporations like Oracle, Tesla, and Hewlett-Packard to more regulatory-friendly states like Texas.
“California continues to suffer a significant exodus of employers to other states, who are seeking lower taxes, fewer regulatory burdens, more affordable housing for employees, and reduced employment litigation,” the letter states. “While we have seen these occurrences gradually grow over the past several years, the pandemic, and current economic crisis in California has exacerbated this situation.”
The legislative effort last year did little to relieve the situation, Kabateck said, noting that less than a handful of bills were passed to ease pressure on the business community.
The letter asks for a six-month suspension of certain laws and regulations, including some passed last year despite entreaties from business groups, along with others, like PAGA, which is a law exclusive to California that has netted significant payouts to plaintiffs’ attorneys but not to workers.
Kabateck noted that NFIB’s most recent Small Business Economic Trends report saw a 24-point drop in confidence that near-term business conditions will see improvement.
“When Wall Street companies leave California, Main Street businesses and consumers suffer, too,” Kabateck said. “We’re hopeful that through the governor’s recent economic package and a better legislative session, our state can return to a culture of being welcoming to companies like other states.”
Time is running out for many California businesses, Kabateck said.
“Our hope is that the letter will startle our policy makers into action and have a direct impact that results in some new legislation that will be crafted with the business community in mind,” Kabateck said. “We stand ready to talk with the legislature to help with ideas to put meat on the bone.”