At an extreme it is. (The buckets aren't so black and white)
Look at France. The costs of firing employees is so high, that companies on the margin choose to hire elsewhere. They only hire after extensively validating the employee. It's much harder to convince an employer to "give me a shot" because they can't back out of the decision easily. It helps the employees already hired, but hurts the ecosystems.
Other laws which force good behavior on everyone at a relatively low cost can help the ecosystem. (Voiding non-competes is one, getting rid of child labor is another)
Some laws are good for individuals, bad for the specific company, and good for the ecosystem. (example: No non-competes)
Some laws are more ambiguous. (example: Minimum Wage)
Laws in bucket 2 are what help California. Laws in bucket 1 hurt. Laws in bucket 3 are harder to determine.