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No retirement plan at work? Your boss may have to sign up for CalSavers soon. Here’s what to know

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No retirement plan at work? Your boss may have to sign up for CalSavers soon. Here’s what to know

For those who work for a small enterprise in California, time is operating out to your employer to arrange a retirement financial savings plan.

By June 30, all companies and nonprofits with 5 or extra staff within the state should both provide their grownup staff a “certified” retirement plan (akin to a pension with outlined advantages or a 401[k] plan) or join the state-run CalSavers Retirement Financial savings Program. CalSavers gives staff particular person retirement accounts at no cost to their employers.

Bigger corporations already must adjust to the mandate, and the state has begun penalizing those that don’t. Employers with 50 or fewer staff in California are the final group to face the requirement to supply retirement advantages or join CalSavers.

There are a rising variety of 401(okay)s, auto-enrollment IRAs and different certified retirement plans designed for small companies, however the overwhelming majority of those employers don’t provide one. Nearly half of the folks working within the personal sector within the U.S. are employed by small companies, in line with the Small Enterprise Administration. And of that group, solely a skinny slice — about 10% — have a retirement financial savings plan at work, mentioned Kristen Carlisle, a normal supervisor of the monetary providers agency Betterment.

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Sure, you may arrange an IRA with out the assistance of your employer. However too few folks do, and consequently, most households have little or no retirement financial savings, in line with the Financial Coverage Institute. The scenario, mentioned Jeff Schulte of ForUsAll, is “a disaster of epic proportions.”

A UC Berkeley evaluation of census information in 2019 discovered that about 60% of California staff ages 24 to 64 had no retirement advantages at work, and almost half of Californians had no property devoted for retirement.

On the subject of retirement plans, “purely voluntary programs inevitably have poor outcomes,” mentioned Nari Rhee, director of the retirement safety program on the UC Berkeley Labor Middle. “There’s a consensus in behavioral economics that folks want some sort of robust nudge to get them to do the correct factor.”

That’s why state lawmakers determined a decade in the past to require employers to supply a retirement plan, with CalSavers as a default possibility that routinely enrolls staff and begins constructing their nest eggs. Right here’s a rundown of CalSavers and the opposite choices accessible to small companies and their staff.

What if my office doesn’t provide a retirement plan?

One hurdle CalSavers faces, Rhee mentioned, is making small employers conscious of the June 30 deadline. They must be informed what their obligations are, she mentioned, however they’re the toughest group to achieve.

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“It’s an enormous advertising and marketing problem,” Rhee added. “That is the place the enforcement piece is available in.”

Staff will help on this entrance too. In case your employer doesn’t provide retirement advantages, let it know in regards to the deadline — you may level your boss to info posted on-line by state Treasurer Fiona Ma or by any variety of employment regulation specialists.

You may additionally make the argument {that a} retirement plan will help recruit and retain staff at a time when companies are struggling to fill open positions. After which there are the penalties for not complying with the mandate: $250 per eligible worker for the preliminary violation, and a further $500 per worker if noncompliance continues.

Katie Selenski, government director of CalSavers, mentioned this system contacts employers that miss the deadline to attempt to get them into compliance. If after a number of months an employer nonetheless doesn’t provide a plan, she mentioned, the board will begin imposing penalties.

In case your employer doesn’t provide retirement advantages, you may join CalSavers straight and have contributions despatched out of your checking account to your IRA, or ask your boss to withhold the cash and ship it to CalSavers for you, she mentioned. You too can join CalSavers in case your employer has a 401(okay) or pension plan that isn’t accessible to you since you work a restricted variety of hours. In both case, although, you’ll must be no less than 18 years previous and have a Social Safety or taxpayer identification quantity.

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What’s CalSavers?

CalSavers gives the best answer for an employer making an attempt to adjust to the mandate: a payroll deduction IRA that enrolls staff routinely except they explicitly decide out. It takes minutes to register on-line, and CalSavers prices employers nothing to take part. Nor do employers contribute something to their staff’ accounts.

Every employee who doesn’t decide out decides how a lot to squirrel away, with the default set at 5% of gross pay. This system additionally will increase every employee’s contribution fee by 1 proportion level each Jan. 1 till it hits 8% of gross pay. However staff can change how a lot they contribute to their IRA or flip off the automated enhance at any level.

You possibly can have a number of IRAs, however essentially the most you may contribute to all of them is $6,000 a 12 months (or $7,000 in case you’re 50 or older). To date, the contribution cap hasn’t been a difficulty for the everyday CalSavers enrollee; the common contribution is $170 per 30 days, or $2,040 a 12 months.

Workers get to decide on which of 5 low-cost mutual funds to put money into, every with a unique funding technique (and so they can select multiple). By default, their cash will go right into a “goal date” fund that regularly reduces volatility and threat because the employee approaches the 12 months she or he plans to retire.

As with every retirement plan, staff must pay the charges charged by the fund managers. However in CalSavers, enrollees additionally must cowl this system’s administrative prices. Collectively, these charges and prices add as much as slightly beneath 1% of the IRA’s stability — or to be exact, $8.25 to $9.50 per $1,000 invested.

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That overhead, which slows the expansion of staff’ financial savings, is about the identical as or lower than the proportion taken by 401(okay) suppliers on accounts at small companies, Selenski mentioned. And CalSavers’ proportion will drop over time as extra staff enroll and the full quantity saved grows, she mentioned.

The one burdens on employers who take part are the necessities to maintain CalSavers up to date on their roster of staff, to withhold their staff’ IRA contributions from their pay and to ship that cash promptly to CalSavers. They could delegate these duties to the corporate that handles their payroll, CalSavers says.

Staff can simply take their IRAs with them if they alter jobs. A second key function of the CalSavers accounts is that they’re Roth IRAs, which means that contributions aren’t tax deductible now however withdrawals are tax free in retirement. Workers could make withdrawals earlier with out a tax penalty so long as they contact solely the cash they contributed, not what their IRA earned from dividends and capital features.

As of Monday, almost 56,000 employers had been collaborating in CalSavers, with two-thirds of their eligible staff beginning accounts. That’s virtually 262,000 staff.

However, thousands and thousands of California staff nonetheless don’t have entry to a retirement plan at work.

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401(okay)s, IRAs and different choices

Rhee of UC Berkeley mentioned CalSavers is a modest financial savings program largely as a result of the federal authorities doesn’t enable states to mandate extra formidable employer-sponsored retirement plans. So except it wished to create its personal model of Social Safety, California was principally restricted to providing an auto-enrollment IRA program, she mentioned.

The monetary providers trade, in the meantime, gives about half a dozen several types of certified retirement plans. For an excellent overview, see the IRS’s comparability of the principle options of certified plans. The U.S. Division of Labor additionally gives an interactive information on-line to assist employers work out what plan may finest swimsuit their workforce.

A lot of the different varieties of retirement plans can allow staff to construct their financial savings quicker with the assistance of contributions from their employers. However they are usually extra expensive and complicated for employers than CalSavers, and should carry some legal responsibility dangers.

The preferred kind of plan within the U.S. is a 401(okay), which permits staff to avoid wasting as much as $20,500 (or $27,000 in the event that they’re 50 or older) tax-free in 2022, though they’ll pay taxes on the cash after they withdraw it in retirement. Employers can contribute as much as 100% of the worker’s pay or $61,000 ($67,500 for staff 50 or older), whichever is decrease, to an worker’s 401(okay) in 2022.

In response to a Congressional Analysis Service report final 12 months, nonetheless, 401(okay) plans can be found to solely about 4 in 10 lower-wage staff (these whose common wages are lower than 75% of the remainder of the nation’s). And barely half of the businesses with 50 or fewer staff provide 401(okay)s.

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Monetary trade specialists say the paperwork, compliance burdens and legal responsibility dangers of 401(okay) plans have deterred many small employers, as have the prices imposed by the key funding homes which have been supplying these plans. In recent times, although, technology-driven monetary companies have designed extra automated, lower-cost 401(okay) plans aimed toward small companies.

These corporations — together with Ubiquity Retirement + Financial savings, Betterment, ForUsAll, Guideline and Vestwell — administer the accounts, present a set of investments for workers to decide on amongst, and tackle no less than a number of the legal responsibility threat.

The federal authorities can be giving small companies extra incentive to supply retirement advantages, enacting laws in 2019 that elevated the tax credit employers can declare for brand spanking new retirement plans, mentioned Chad Parks, founder and chief government of Ubiquity Retirement + Financial savings. Now, small employers can write off half their plan bills, as much as $5,000 a 12 months, for the primary three years, Parks mentioned, and so they can declare a further $500 credit score if their plans enroll staff routinely.

The credit score helps slash the executive prices of the 401(okay) plans provided by most of the new entrants. Though their fashions range, they usually cost employers a flat payment per 30 days plus a payment per employee enrolled, whereas accumulating a small proportion of the quantity saved within the employee’s account. That splits the price between employer and employee with out placing a lot of a drag on staff’ accounts.

With the tax credit, the charges for a 20-person firm’s 401(okay) plan could possibly be $100 or much less per 30 days. That’s far lower than what an organization would spend if it determined to match its staff’ contributions to their 401(okay)s.

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The Home overwhelmingly authorized a invoice in March to extend the tax credit score for small employers to 100% of the primary $5,000 in bills for brand spanking new plans. The proposal, which is awaiting motion within the Senate, would additionally briefly present tax credit for the primary $1,000 per worker a small employer contributes to staff’ retirement accounts.

Jeff Rosenberger, chief working officer of Guideline, mentioned employers shouldn’t begin a 401(okay) plan if they’ve extraordinarily excessive worker turnover or in the event that they’re not assured their enterprise goes to final for various years. In addition they want to contemplate whether or not their staff have the means and want to contribute greater than an IRA would enable.

Selenski of CalSavers mentioned the median earnings of the California staff who don’t have a retirement plan at the moment is estimated at lower than $30,000. For these staff, hitting the utmost IRA contribution could be a stretch.

But “when folks begin to save on a payroll-deducted foundation,” Vestwell Chief Govt Aaron Schumm mentioned, “they’re typically in a position to save excess of we ever thought they’d be capable to.” Lots of people can enhance their financial savings, he mentioned, “after they see how straightforward it’s, after they don’t have the {dollars} sitting of their checking account.”

Nonetheless, Rosenberger acknowledged that 401(okay)s aren’t for each enterprise. “There’s a place for CalSavers; there’s a place for us,” he added. “It’s a large enough problem within the market, and small companies have been so underserved.”

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Employers who aren’t excited about 401(okay) plans however need an alternative choice to CalSavers have numerous different selections for IRA plans.

An computerized enrollment IRA just like CalSavers’ plan is on the market from personal monetary service corporations. And there are two further varieties of IRA accessible from banks and funding companies that depend on employer contributions to spice up staff’ accounts.

  • A SIMPLE IRA plan, which a enterprise with 100 or fewer staff can provide, requires employers to match their staff’ contributions or kick in 2% of every worker’s compensation.
  • A simplified worker pension is funded fully by employer contributions. Much like SIMPLE IRA plans, the employer has to contribute on the similar fee to all staff’ SEP IRAs, however the contribution limits are significantly increased — as much as 25% of a employee’s pay, to a most of $61,000 in 2022.

One different possibility for employers is to supply a “outlined profit” pension, which pays staff a proportion of their wage after they retire primarily based on what number of years they’ve labored for the corporate. Solely a few quarter of full-time personal sector staff in america are coated by pensions, the Congressional Analysis Service reported. These plans have light over the past a number of a long time due to the price and threat they carry for employers, who must pay the promised advantages whatever the well being of the pension fund’s investments.

Employers who’re torn between a 401(okay) and an IRA plan can at all times change their minds down the highway. In the event that they resolve to change from an IRA to a 401(okay) plan or vice versa, their staff can select to roll over their accounts into the brand new plan or begin a second retirement account with out incurring tax penalties.

About The Occasions Utility Journalism Group

This text is from The Occasions’ Utility Journalism Group. Our mission is to be important to the lives of Southern Californians by publishing info that solves issues, solutions questions and helps with resolution making. We serve audiences in and round Los Angeles — together with present Occasions subscribers and various communities that haven’t traditionally had their wants met by our protection.

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How can we be helpful to you and your neighborhood? Electronic mail utility (at) latimes.com or one in all our journalists: Matt Ballinger, Jon Healey, Ada Tseng, Jessica Roy and Karen Garcia.

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Biden Administration Adopts Rules to Guide A.I.’s Global Spread

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Biden Administration Adopts Rules to Guide A.I.’s Global Spread

The Biden administration issued sweeping rules on Monday governing how A.I. chips and models can be shared with foreign countries, in an attempt to set up a global framework that will guide how artificial intelligence spreads around the world in the years to come.

With the power of A.I. rapidly growing, the Biden administration said the rules were necessary to keep a transformational technology under the control of the United States and its allies, and out of the hands of adversaries that could use it to augment their militaries, carry out cyberattacks and otherwise threaten the United States.

Tech companies have protested the new rules, saying they threaten their sales and the future prospects of the American tech industry.

The rules put various limitations on the number of A.I. chips that companies can send to different countries, essentially dividing the world into three categories. The United States and 18 of its closest partners — including Britain, Canada, Germany, Japan, South Korea and Taiwan — are exempted from any restrictions and can buy A.I. chips freely.

Countries that are already subject to U.S. arms embargoes, like China and Russia, will continue to face a previously existing ban on A.I. chip purchases.

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All other nations — most of the world — will be subject to caps restricting the number of A.I. chips that can be imported, though countries and companies are able to increase that number by entering into special agreements with the U.S. government. The rules could rankle some foreign governments: Even countries that are close trading partners or military allies of the United States, such as Mexico, Switzerland, Poland or Israel, will face restrictions on their ability to purchase larger amounts of American A.I. products.

The rules are aimed at stopping China from obtaining from other countries the technology it needs to produce artificial intelligence, after the United States banned such sales to China in recent years.

But the regulations also have broader goals: having allied countries be the location of choice for companies to build the world’s biggest data centers, in an effort to keep the most advanced A.I. models within the borders of the United States and its partners.

Governments around the world, particularly in the Middle East, have been pumping money into attracting and building enormous data centers, in a bid to become the next center for A.I. development.

Jake Sullivan, President Biden’s national security adviser, told reporters on Sunday that the rule would ensure that the infrastructure for training the most advanced artificial intelligence would be in the United States or in the jurisdiction of close allies, and “that capacity does not get offshored like chips and batteries and other industries that we’ve had to invest hundreds of billion dollars to bring back onshore.”

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Mr. Sullivan said the rule would provide “greater clarity to our international partners and to industry,” while countering national security threats from malicious actors that could use “American technologies against us.”

It will be up to the Trump administration to decide whether to keep the new rules or how to enforce them. In a call with reporters on Sunday, Biden administration officials said that the rules had bipartisan support and that they had been in consultations with the incoming administration about them.

Though companies in China have begun to develop their own A.I. chips, the global market for such semiconductors is dominated by U.S. companies, particularly Nvidia. That dominance has given the U.S. government the ability to regulate the flow of A.I. technology worldwide, by restricting U.S. company exports.

Companies have protested those limitations, saying the restrictions could hamper innocuous or even beneficial types of computing, anger U.S. allies and ultimately push global buyers into buying non-American products, like those made by China.

In a statement, Ned Finkle, Nvidia’s vice president for government affairs, called the rule “unprecedented and misguided” and said it “threatens to derail innovation and economic growth worldwide.”

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“Rather than mitigate any threat, the new Biden rules would only weaken America’s global competitiveness, undermining the innovation that has kept the U.S. ahead,” he said. Nvidia’s stock dipped nearly 3 percent in premarket trading on Monday.

Brad Smith, the president of Microsoft, said in a statement that the company was confident it could “comply fully with this rule’s high security standards and meet the technology needs of countries and customers around the world that rely on us.”

In a letter to Congressional leadership on Sunday that was viewed by The New York Times, Jason Oxman, the president of the Information Technology Industry Council, a group representing tech companies, asked Congress to step in and use its authority to overturn the action if the Trump administration did not.

John Neuffer, the president of the Semiconductor Industry Association, said his group was “deeply disappointed that a policy shift of this magnitude and impact is being rushed out the door days before a presidential transition and without any meaningful input from industry.”

“The stakes are high, and the timing is fraught,” Mr. Neuffer added.

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The rules, which run more than 200 pages, also set up a system in which companies that operate data centers, like Microsoft and Google, can apply for special government accreditations.

In return for following certain security standards, these companies can then trade in A.I. chips more freely around the globe. The companies will still have to agree to keep 75 percent of their total A.I. computing power within the United States or allied countries, and to locate no more than 7 percent of their computing power in any single other nation.

The rules also set up the first controls on weights for A.I. models, the parameters unique to each model that determine how artificial intelligence makes its predictions. Companies setting up data centers abroad will be required to adopt security standards to protect this intellectual property and prevent adversaries from gaining access to them.

Governments facing restrictions can raise the number of A.I. chips they can import freely by signing agreements with the U.S. government, in which they would agree to align with U.S. goals for protecting A.I.

Under the guidance of the U.S. government, Microsoft struck an agreement to partner with an Emirati firm, G42, last year, in return for G42 eliminating Huawei equipment from its systems and taking other steps.

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The Biden administration could issue more rules related to chips and A.I. in the coming days, including an executive order to encourage domestic energy generation for data centers, and new rules that aim to keep the most cutting-edge chips out of China, people familiar with the deliberations said.

The latter rule comes in response to an incident last year in which U.S. officials discovered that Huawei, the sanctioned Chinese telecom firm, had been obtaining components for its A.I. chips that were manufactured by a leading Taiwanese chip firm, in violation of U.S. export controls.

The announcements are among a flurry of new regulations that the Biden administration is rushing to issue ahead of the presidential turnover as it tries to close loopholes and cement its legacy on countering China’s technological development. The administration has issued new limits on exports of chip-making equipment to China and other countries, proposed new restrictions on Chinese drones, added new Chinese companies to a military blacklist, and hurried to finalize new subsidies for U.S. chip manufacturing.

But the A.I. regulations issued Monday appear to be among the most sweeping and consequential of these actions. Artificial intelligence is quickly transforming how scientists carry out research, how companies allocate tasks between their employees and how militaries operate. While A.I. has many beneficial uses, U.S. officials have grown more concerned that it could enable the development of new weapons, help countries surveil dissidents and otherwise upend the global balance of power.

Jimmy Goodrich, a senior adviser for technology analysis at the RAND Corporation, said the rules would create a framework for protecting U.S. security interests while still allowing firms to compete abroad. “They are also forward-looking, trying to preserve U.S. and allied-led supply chains before they are offshored to the highest subsidy bidder,” he said.

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With bird flu still affecting egg prices, brunch in L.A. may soon cost more

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With bird flu still affecting egg prices, brunch in L.A. may soon cost more

Ongoing egg shortages in California due to the spread of bird flu among livestock are bringing another early 2025 challenge to local restaurants, especially brunch spots that rely heavily on eggs for menu items.

It’s also unclear how the ongoing fire disasters that erupted Tuesday could affect eggs and other staple ingredients. But, in light of difficult times overall for the industry and a traditionally slow January, some restaurateurs earlier this week said they have already been forced to raise prices for diners, or are weighing whether to do so, according to multiple interviews.

In San Luis Obispo, Philip Lang, who has operated Bon Temps Creole Café for nearly 30 years, said he increased the price on egg items on his menu right before Christmas. For instance, a $15 menu item now costs $17 for two eggs.

Before the bird flu outbreak, he paid $20 for a case of 15 dozen conventional eggs. Since bird flu, the price has kept doubling, starting from about $50 to now about $110 a case.

“Eggs go into all of our dishes,” he said of his restaurant that only opens for breakfast and lunch. “We make our hollandaise with eggs and dressings with eggs.”

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He said most diners are understanding but some still express disappointment.

In Irvine, eggs go in just about every dish at Burnt Crumbs, from bestselling Japanese-style soufflé pancakes to the breakfast fried rice, said chef-owner Paul Cao. On an average week, Cao said his kitchen goes through 180 to 225 dozens of eggs. Cao is now having to pay more than double compared to three months ago — up to $130 for a case of 15 dozen eggs.

The H5N1 strain of the bird flu virus continues to spread across the globe, curtailing egg supply and making them more expensive and difficult to find. There’s no sign of relief, with scientists and health officials fearing we’re on the verge of another global pandemic. In California, egg prices have soared to $8.97, a 70% increase in the last month, according to the U.S. Department of Agriculture.

Cao said he doesn’t plan to raise prices for now. “I’ll give it until March — first quarter 2025, if this doesn’t trend in the right direction, we will have to raise prices. We can’t keep eating costs,” he said.

He’s afraid of losing customers but said he can’t sustain the price increase for long. “When egg prices go up $2 per dozen, that costs us a couple thousand a month,” he said.

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Chef Walter Manzke, second from left, and the kitchen team at République in Los Angeles. The restaurant, like many others, is weighing increasing the cost of some egg dishes as the bird flu outbreak continues to affect egg prices.

(Ron De Angelis / For The Times)

Walter Manzke, who co-owns République with wife and partner Margarita Manzke, said he feels lucky that he can still procure good eggs from his distributor despite the shortage.

He doesn’t expect to raise prices on his menu yet but is definitely feeling the squeeze because so many of his well-known dishes use eggs — including his popular French toast.

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“We’re just doing the best we can,” he said of the Hancock Park restaurant that ranked No. 4 last year on The Times’ 101 Best Restaurants in Los Angeles guide. “Compromising on quality is not an option.”

On Friday, Delilah Snell, who operates Alta Baja Market, temporarily raised prices to her egg dishes by $1 at her restaurant and market in Santa Ana.

Snell is now paying $131 for a case of 15 dozen free-range organic brown eggs. In October, she paid around $70. She said she could pay less for lower-quality eggs but doesn’t “want to compromise the quality” her customers have come to expect.

On the front counter menu of her store, she posted a sign that reads: “Over the past few weeks, our prices have gone up 40% (and are continuing to rise) because of the bird flu. As a result we need to add a $1 surcharge to all dishes with eggs to cover this expense to still provide you with a high-quality product.”

Once prices drop, she said, she’ll remove the surcharge.

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The spike in egg prices comes on the heels of a slow COVID-19 pandemic recovery, as many restaurants in Southern California continue to struggle.

Lang of Bon Temps said there is now a notice on top of the menu that alerts customers to the $1 temporary increase per egg.

The notice reads: “Due to the bird flu that has caused the price of eggs to quadruple in recent months, we find it necessary to add a surcharge of a dollar per egg for all dishes containing eggs until the price of eggs comes down. We regret each time we are forced to raise any of our prices. Please know that we are not doing this for profit, only to maintain our business during these difficult times. Thank you for your understanding.”

Lang said he plans to do away with the surcharge once prices go down to about $50 for a case of 15 dozen eggs.

Used and unused eggs sit in a carton of 18 in a Chicago area home Tuesday, Jan. 10, 2023.

The cost of eggs soared by 70% in the last month in California, according to the U.S. Department of Agriculture.

(Charles Rex Arbogast / Associated Press)

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As egg prices tick up, several shoppers are also reporting shortages.

On Tuesday afternoon, Cao said the egg shelves at Song Hy market in Little Saigon in Garden Grove were more than half empty. The store, known for its inexpensive groceries, was selling cage-free medium eggs for $8.99 a dozen, according to a video he provided.

Around the same time, an egg cooler at a Trader Joe’s in Irvine was already nearly half empty after having just received a fresh shipment late that morning, one shopper said. A day earlier, at a nearby Costco, Cao said there was a line of at least 12 people waiting to grab a case of a dozen eggs from shelves that were half empty.

Some restaurant owners, such as Jasmin Gonzalez, who runs Breezy in San Juan Capistrano, have opted to raise prices on other menu items and avoid a price hike on the restaurant’s popular egg dishes.

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Her restaurant — which serves a Filipino-inspired brunch — will be closed for a couple weeks for a remodel, she said, and she’ll likely raise prices on some items once it opens, mostly on higher-margin items, such as coffee. That would help the restaurant offset the price of eggs and other increased costs, including the statewide minimum-wage increase, she said.

Gonzalez said she doesn’t feel comfortable changing the price of her $14.99 breakfast burrito, a bestseller.

“I don’t want people paying $16 or $17 for breakfast burritos,” she said. “I don’t like the way that feels.”

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How Poshmark Is Trying to Make Resale Work Again

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How Poshmark Is Trying to Make Resale Work Again

Lauren Eager got into thrifting in high school. It was a way to find cheap, interesting clothes while not contributing to the wastefulness of fast fashion.

In 2015, in her first year of college, she downloaded the app for Poshmark, a kind of Instagram-meets-eBay resale platform. Soon, she was selling as well as buying clothes.

This was the golden age of online reselling. In addition to Poshmark, companies like ThredUp and Depop had sprung up, giving a second life to old clothes. In 2016, Facebook debuted Marketplace. Even Goodwill got into the action, starting a snazzy website.

The platforms tapped into two consumer trends: buying stuff online and the never-gets-old delight of snagging a gently used item for a fraction of the original cost. During the Covid-19 pandemic, as people cleaned out their closets, enthusiasm for reselling intensified. It was so strong that Poshmark decided to go public. On the day of its initial public offering in January 2021, the company’s market value peaked at $7.4 billion, roughly the same as PVH’s, the company that owns Calvin Klein and Tommy Hilfiger, at the time.

Then, the business of old clothes started to fray.

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Using the Poshmark app, Ms. Eager and others said, started to feel like trying to find something in a messy closet. The app was cluttered with features that did not work or that she did not use, and it felt “spammy,” she said, sending too many push notifications.

Many platforms found selling used items hard to scale. Now, online resellers are trying to recalibrate. Last year, ThredUp decided to exit Europe and focus on selling in the United States. Trove, a company that helps brands like Canada Goose and Steve Madden resell their goods, purchased a competitor, Recurate. The RealReal, a luxury consignor, appointed a new chief executive as the company tried to improve profitability.

Poshmark is undergoing perhaps the biggest reinvention. In 2023, Naver, South Korea’s biggest search engine as well as an online marketplace, bought the company in a deal valued at $1.6 billion, less than half its IPO price.

Something of a mash-up of Google and Amazon, Naver is betting it can rebuild Poshmark, which has 130 million active users, with the same technology that made Naver dominant in its own country.

It may also help breathe new life into the resale market. Analysts think the resale fashion market still has room to grow in the United States, with revenue expected to increase 26 percent to $36.3 billion by 2028, according to the retail consultancy firm Coresight Research.

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New legislation in California could help. The law, passed last year, requires brands and retailers that operate in the state and generate at least $1 million to set up a “producer responsibility organization” to collect and then reuse, repair or recycle its products. Resale platforms like ThredUp and Poshmark could be in a position to help brands carry out that mandate.

At the moment, though, Naver’s focus for Poshmark is more basic: Make it a better place to sell and shop. The company has the “operating know-how” to do that, said Philip Lee, a founder of the media outlet The Pickool, which covers both South Korean and U.S. tech companies.

“They’re trying to renovate Poshmark and then expand the market share,” he said.

Poshmark, which is based in Redwood City, Calif., was founded in 2011 by Manish Chandra, an entrepreneur and former tech executive, and three others. In trying to expand, Poshmark faced a problem common to resellers: Capturing the excitement of the secondhand-shopping treasure hunt while not frustrating buyers with an endless scroll. The company knew it needed better search, as well as interactive elements that gave people more reasons to come beyond paying $19 for a J. Crew sweater.

For its part, Naver was looking for ways to push beyond South Korea, where its commerce and search businesses were already mature. The growing online resale market in the United States presented an opportunity, and also gave the company access to the largest consumer market in the world.

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Commerce is a big growth engine for us,” Namsun Kim, Naver’s chief financial officer, said. And the peer-to-peer sector, where users sell to one another, was still in its infancy, with room to expand. But, Mr. Kim added, “it’s a more challenging segment, and that’s why it’s harder for a lot of the larger players to enter.”

There are two common business models for resale: peer-to-peer and consignment. With consignment, a platform collects and redistributes physical goods. Poshmark uses the peer-to-peer model, which relies on scores of people — many of them novices — haggling over prices and then mailing items to one another. This decentralization can be a headache for brands, which like to maintain a certain level of control of their products. And platforms like Poshmark must make buyers comfortable with trusting the sellers on their site.

Before the Naver purchase, it was difficult to push through needed technological changes, said Vanessa Wong, the vice president of product at Poshmark.

“I would always talk to my engineers and ask, ‘What if we do this or do that?’ They’re like, ‘That’s hard. The effort’s really high,’” Ms. Wong said.

Naver’s purchase offered both the investment and the expertise to pull off the changes. Founded in 1999, the company is everywhere in South Korea.

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“We are not just a simple search technology or A.I. service,” said Soo-yeon Choi, the chief executive of Naver, whose headquarters are near Seoul. The company, she said, “alleviates the frustrations of people, which is what is needed to help growth.”

Search built Naver “into the massive power that they are in Korea,” said Mr. Chandra, who stayed on as chief executive after Naver’s purchase. It was the top priority when the company bought Poshmark.

Several new elements for users and sellers have been introduced. With a tool called Posh Lens, users can take a photo of an item and, using Naver’s machine-learning technology, the site populates listings that are the same or similar to the shoe or tank top that they’re searching for. A paid ad feature for sellers called “Promoted Closet,” pushes listings higher on customer feeds.

Poshmark also introduced live shows, some of which are themed, to draw in the TikTok generation and increase engagement. One party auctioned off clothing previously worn by South Korean celebrities, a connection that was made with the help of Naver.

Still, the resale market is going through growing pains and has not quite found its footing since the height of the pandemic. It’s not clear whether the changes taking place at Poshmark will be enough. In May, Mr. Kim, Naver’s finance chief, said in an earnings call that Poshmark’s profitability was improving, but by November, the company was cautioning that growth had slowed because of weakness in the peer-to-peer resale market in North America.

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The company has already done some backpedaling on unpopular decisions.

In October, Poshmark introduced a new fee structure, which increased costs for buyers. Sellers, fearing that higher costs would make consumers bolt, revolted. Within weeks, the company scrapped the new fee structure.

And there are still user headaches: tags and keywords that help users find what they’re looking for can be miscategorized. Sellers sometimes tag their products incorrectly to get more eyeballs on their less popular products. (Hard-to-offload Amazon leggings, for example, may be listed as Free People apparel.)

The company is beta testing changes with its frequent sellers — people like Alex Mahl, who sells thousands of dollars in apparel on the site each year. And within dedicated Facebook groups related to Poshmark, there’s a lot of chatter about the changes that sellers and buyers would still like to see.

“The only way for it to do well is there’s going to be constant changes,” Ms. Mahl said about the tweaks on Poshmark. “If you were just on an app that never changed — one, it would be boring, and two, the opportunity to just do better wouldn’t be there.”

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One recent morning, Ms. Eager, the seller who joined Poshmark back in college, was pleasantly surprised to find that the app had some new features she actually liked. She snapped a photo of her Aerie gray tank top with Posh Lens. Within seconds, the app populated listings of similar products. It was so much better than conjuring up the adjectives needed to describe it.

“Love it,” Ms. Eager exclaimed.

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