AUSTIN (KXAN) — Starting Monday, Austin businesses are being told to follow the city’s new COVID-19 orders or face a fine of $1,000. However, Gov. Greg Abbott says business owners should not worry about it.

The new rule goes into effect at noon Monday. The city is requiring businesses to put up signs about vaccines and masking. One of the signs encourages masks and vaccines in general. The other sign shows customers the COVID precautions businesses are taking. Businesses that fail to put up the signs could face a hefty fine each day they do not have the signs up.

The state says this order is in violation of state law so the rules don’t need to be followed.

Yet, this is not the only challenge business owners are facing. Staffing shortages and supply chain issues are leaving some on the brink of closure.

In east Austin, Longhorn Daquiris is in need of workers.

The daiquiri shop and seafood restaurant owner Andrea Villescaz has a location in Austin and San Marcos. She said they are looking for around 15 people or more to hire from cashiers, cooks, and even a delivery driver. They need the help as several of their employees are currently out sick and quarantined. The lack of workers has the owner and her family working around the clock to fill in the gaps. In hopes of attracting new employees, they’ve increased the pay from $10 dollars an hour to $13.

They are not the only ones, several other businesses have done the same rising wages as high as $20 an hour.

However, the staffing shortage issue they’ve been facing for the last four months is not the only challenge. Villescaz says they are also dealing with a rise in food costs.

“It’s already gone up like triple the inflation so it’s hard to even still have anywhere near the same profit margin, it’s really hard,” Villescaz said. “If you raise the price a little bit and then you upset the people and it’s like we’re stuck in a hard spot.”

In December, those at the Texas Restaurant Association conducted a study where they found that nearly 80% of restaurants across the state have reported they do not have enough employees.

“It’s a real struggle those food costs and labor costs are up between 80% to 90% for our restaurant operators across the state compared to pre-pandemic numbers,” explained Kelsey Erickson Streufert with the association.