California business owners need a break. What they need most is relief from new legislative mandates and public policy headwinds. According to a statewide PPIC survey, 68% of those polled say bad times lie ahead.

California businesses are asking the Legislature to “HIT THE PAUSE BUTTON” on all new employer mandates in 2026 so they can try to navigate higher costs and all the pre-existing burdens on California businesses.

New mandates just make it harder. Harder to understand. Harder to comply. Harder to sleep. Harder to be optimistic about our future.

 

CA Mandates and Business Conditions That Keep Us Awake at Night:

Employer Liability – Endless litigation and continued PAGA lawsuits.

New Mandated Paid Sick Leave – Mandated paid sick leave increase from three to five days in 2024.

Minimum Wage Increase – Increased minimum wage to $16.90 in 2026 triggering new mandated payroll costs, workers compensation costs, and exemption thresholds for salaried employees, etc.

Unemployment Insurance Taxes – California’s $23.2B debt to federal government will be collected from employers in the form of higher taxes between now and 2030.

New Employee Data Reporting Requirements - New costs from 2022.

Decarbonization Mandates - Billions in new costs associated with the purchase of new equipment, stoves, boilers, manufacturing machinery, heat pumps, fleet changeovers; along with higher costs for electricity due to forecasted electron deficits.

COVID Supplemental Paid Sick Leave - Non-reimbursed costs from 2022.

Cal/OSHA Exclusion Pay - Non-reimbursed payroll costs from 2021-22.

COVID PPE - Still paying back costs for outfitting of workplaces to comply with CDPH mandates.

Workers' Compensation - Fourth most expensive system in the country.

Fire Insurance – Most expensive and difficult to obtain in the nation.

Auto Insurance – More expensive and difficult to obtain in 2024.

High Energy and Fuel Costs - Amongst highest in the nation.

Homelessness Crisis - Increases costs associated with vandalism, trash, and sanitation. Reduces business property appeal to tourism.

Highest Personal Income Tax Rates in the Nation - Less household and business spending power.

Highest Base Sales/Use Tax Rate - Sales avoidance and transaction reduction.

Corporate Tax Rate is the 8th Highest - Less re-investment in California jobs.

Inflation - Higher material costs.

High Interest Rates - Reduced access to capital.