Thinking of Relocating Your Business to California? Don't!

[IsailedawayfromFR]

Let me tell you: California is La La Lawsuit Land. It can be a very expensive place to conduct business, so my advice is to steer clear.

“I own an IT company with 20 employees on the East Coast, and we are tired of shoveling snow. California’s weather, plus the need for managed IT services and tax advantages offered by some of your cities, is attractive and we are considering relocating.

“But I have read about California employers having a gun held to their heads by law firms filing suits over some of the silliest, inconsequential claimed violations of your labor laws. Many have paid hundreds of thousands of dollars in what appears to be legalized extortion by law firms established for one purpose - to rip off business owners.
https://www.kiplinger.com/article/business/T008-C032-S014-why-you-shouldn-t-move-your-business-to-california.html

[mountaineer]

Hard to imagine anyone wanting to start a business in California. All we've heard lately is how business owners are making plans to relocate.

Having said that, Mr. M's cousin used to have a business in California. He relocated to Austin, TX, but returned to CA after a few years. I can't imagine why he'd want to work there, let alone raise his young family there.

[skeeter]

Recent rulings have put CA employers who use 1099 personnel at risk of being sued, and possibly liable for up to 2 years of benefits due a W2 employee, retroactively, pretty much at the whim of some judge.

This comes at the same time we're experiencing epic increases in the minimum wage.

We've sold our businesses and are trying a model that will not require we hire anyone. No more jobs.

If this doesn't work it'll be astalavista after 50+ years.