California Dems Can Now Set Wages for Private Businesses. Critics Say This Will ‘Destroy Jobs.’
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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.
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