One would think the economy is doing poorly enough thanks to the recent COVID-19 pandemic. However, LA politicians have found a way to wreak even more havoc on their city’s business community in the name of helping the less fortunate.
The LA City Council is attempting to pass ordinances that would make it illegal for LA-based businesses to terminate employees without “just cause.” In other words, companies could not lay off people due to the financial impact of the pandemic. Small restaurants, stores, hair salons and the like would be forced to keep their employees and pay them full salaries even though the business would most likely not have the money to do so.
What’s more, employees that are (or already have been) let go must be rehired in order of seniority. It doesn’t matter if the business has to downsize or recalibrate; the company owner can’t hire new workers to do new tasks without offering jobs to former workers first. Furthermore, if a company buys up another business, it would be required to keep the same workers.
Essentially, far-left progressives are using the crisis to get every item on their Marxist wish list.
These laws are sure to make life completely miserable for small business owners throughout the city. But they get worse. While the council is using the COVID-19 crisis to attempt to pass these ordinances, they’re not just about helping employees weather the current pandemic. The ordinances would stay on the books until March 4, 2022. They will also be applied retroactively. If a company let go of workers in early March due to a shutdown of services, the city could take legal action against it. The same holds true for mid-size companies that bought small businesses, and then laid off some or all of the employees.
These rules would discourage innovation and small business ownership at a time that it’s critically needed. After the crisis has subsided, small businesses will be essential for mending the economic damage. This doesn’t work when a city government is actively shredding these businesses to the ground.
Given the economic devastation the LA City Council is trying to bring about, it’s not surprising that the LA Area Chamber of Commerce is urging those who care about the city’s economic future to oppose the new ordinances. Sadly, it’s not the first time that California politicians have made life miserable for the business sector in their state, and it probably won’t be the last.
Democrats have made it perfectly clear that they’re happy to exploit a crisis to advance their agenda. LA is only the beginning.