Small businesses often struggle with tiny budgets and limited staff. These limitations, in turn, can make it challenging to grapple with restrictive—and often costly—state labor laws.
That’s what led Kerri Feazell, CEO of video production agency Concurrent Productions, to jump ship from sunny California to windy Chicago.
“As a small production company that films at client locations only a handful of times each year, we rely heavily on independent contractors, such as lighting and camera experts, for one-day film shoots,” Feazell explained to Business.org.
And when California’s AB-5 law made it an uphill battle to classify workers as contractors vice employees, Feazell saw the writing on the wall.
“While we absolutely support fair labor laws and insurance protection for workers, laws like AB-5 make it challenging for small businesses like ours to grow to the point where we can hire full-time staff. So far, Illinois allows us to hire independent professionals in a way that is less onerous for both parties.”
Feazell’s operation is just one example of a business gaining from diverse labor laws nationwide. But if their example sounds relatable, it’s worth considering the potential monetary advantages available across state lines. Don’t forget to analyze how such a move could affect your customer base and revenue flow, though.