Can you provide some context for that, please?
To a businessman an 1% increase in labor cost is an “explosion”.
Look at meat packing.
The wage paid to “nonstandard” workers is below minimum wage. Often the employer will not pay taxes on the employee.
So having to employ a standard employee means that all the taxes, benefits, and regulations will most likely be followed.
I have heard that has the potential to add up to a $1 a pound to the cost of burger. It will be the equivalent to increasing the minimum wage for those industries.
Remember, the corporations will try to keep the level of profit as high as they were enjoying before. In some markets, that will not be possible.