Not necessarily true. The California values have long been over inflated and they could locate the business in the South and probably purchase a home of equal or greater size for less than they would sell their home for.

The business climate as an example is much better in Texas than in California and would more than offset the cost of moving. It's not like moving hundreds of employees, your talking about a dozen or less, not a big deal.

In adition the cost of living in less in Texas, thus the employees would in effect get a salary increase. Also there is no state tax like California and the savings would go directly into the pockets of the employees.

Looking at California debt problem, you will see either tax increases or less services that will impact the population as well as businesses in the future, another negative to consider.