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(WASHINGTON FREE BEACON) – California is resurrecting a long-defunct commission that allows the state to set wages in certain industries, which experts warn could kill small business franchises.
A provision of the budget that Gov. Gavin Newsom (D.) signed on Monday will revive the Industrial Welfare Commission, a labor regulatory board that the Legislature defunded in 2004. The board, whose five members will be appointed by Newsom, will have the power to set wages and hours for fast-food restaurants and other franchises. Critics say Democrats are using the commission to push unsustainable minimum wage hikes under the guise of improving workplace conditions.
“To put it bluntly, this commission could micromanage the operations of every small business franchise in California,” Assemblyman Vince Fong (R.) told the Washington Free Beacon.
Fong, the top Republican on the Assembly’s Budget Committee, said the provision could “destroy jobs and businesses in California.”
“The business climate in California was already bad,” Fong said, “and this makes it worse—if that’s even possible to imagine.”
A combination of regulation and rising crime has driven companies out of the Golden State. More than 350 businesses left California between 2018 and 2021, according to the California Globe. The 127-year-old Anchor Brewing this month joined a growing number of businesses to depart San Francisco.
