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Though optimistic, L.A. businesses concerned about taxes, minimum wage hike

On Behalf of | May 23, 2015 | Business Litigation

Amid reports that business owners in Los Angeles County are more optimistic about this year’s business conditions compared to last year’s, owners still share some serious concerns, not the least of which is government regulation in the form of the citywide minimum wage hike.

The Los Angeles City Council has agreed to raise the minimum wage from $9 to $15 an hour. Large companies will have to meet that rate by 2020, and small businesses will have until 2021.

Still, according to the Los Angeles County Business Federation’s annual survey, 59 percent of companies that responded said they intend to make capital investments and 40 percent said they intend to hire more workers. Those figures represent year-over-year increases of 28 percent and 10 percent, respectively.

For five years in a row, businesses have said their highest-priority concerns are high taxes and fees. This year compliance with government regulation moved up to the second-highest concern, and local permitting processes became this year’s number three concern.

The response from business owners was mostly optimistic, though, with 66 percent of respondents saying they expect business conditions in 2015 to improve.

Market conditions and employment and business laws change frequently, and companies have to stay abreast of those changes to remain in regulatory compliance and to compete. If you have questions about corporate and business law in California, then seek help from a full-service business law firm with the knowledge and resources to protect your rights and interests.

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