Senate Labor Committee Convenes Hearing on Employer Impacts and California’s Response to Protect Workers

The State Senate Labor, Public Employment and Retirement Committee convened a special hearing last week to examine how recent federal policy changes are affecting workers, families and employers across California as communities continue to navigate economic uncertainty. Chaired by Senator Lola Smallwood-Cuevas (D-Los Angeles), the Committee heard testimony from workers, labor leaders, economists and policy experts about how federal policy shifts have impacted wages, workplace protections, workforce participation, and job stability in California.

During the hearing, lawmakers heard directly from workers and employers about how federal healthcare cuts, aggressive immigration enforcement, tariffs, and other policy shifts are affecting the livelihoods of Californians and the stability of the state’s labor market.

“California’s workforce is the backbone of our economy, and it is critical that we fully understand how shifting federal policies are shaping real world conditions on the ground,” said Senator Smallwood-Cuevas. “Testimonies shared at our hearing made it clear that these changes have had serious effects on families trying to make ends meet and for employers working to keep their doors open.”

The hearing underscored the importance of state-level policies to stabilize the workforce, protect worker rights, and provide clarity and support for employers. Testimony highlights include:

• Statewide Economic Conditions: Testimonies stressed the ongoing economic pressures across California, including how reduced federal support or policy changes may increase demand on state-funded safety net programs, placing additional pressure on California’s budget.

• Federal Immigration Enforcement Impacts: Labor experts described how increased federal enforcement and policy shifts are constraining labor supply. Shannon Sedgwick, VP of Research for the LA County Economic Development Corporation, testified that following the immigration enforcement in LA County, 44% of affected employers lost more than 50% of their revenue.

• Employee Impacts: Workers shared concerns about how federal policy shifts have impacted their livelihoods and healthcare access. Wallace Wade, a member of the American Federation of Government Employees, testified that TSA workers are considered essential, so they are expected to work without pay, leaving them struggling to survive. Michelle Gutierrez-Vo, President of the California Nurses Association, reported that HR-1 has left people delaying their healthcare needs because of high deductibles and other expensive medical costs.

• California’s Response & Resistance: Testimonies focused on the state’s commitment to pushing back against harmful federal policies through strengthened worker protections and coordinated efforts to support both workers and employers.

As many workers continue to face economic insecurity, recent data shows that impacts are not felt equally. In 2025, Black unemployment in California reached 6.4%, with nearly one in eight Black workers considered unemployed or underemployed – above recession levels, indicating broader economic troubles ahead for California.

The testimonies gathered from the hearing will help guide California’s response to protect workers, strengthen the labor market, and uphold the state’s core values of fair wages, workers safety, and equitable access to opportunity.

Senator Lola Smallwood-Cuevas represents the 28^th Senate District, which includes the communities of South Los Angeles, Mid City, Culver City, West Los Angeles, Century City and Downtown Los Angeles. Senator Smallwood-Cuevas spent more than two decades serving as a worker rights and racial equity advocate before her election to the State Senate. She resides in the View Park community of South Los Angeles with her family.

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