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New Labor Law Hurts Employers, Says NFIB

[ 0 ] Dec. 19, 2011 | SBO Editor

In testimony before the House Committee on Small Business, a representative of the National Federation of Independent Business described the new environment employers must operate under thanks to anti-business policies from the Department of Labor and the National Labor Relations Board (NLRB).

“America’s small businesses, the backbone of our economy, are facing a huge challenge when it comes to understanding and complying with labor law,” said Elizabeth Milito, senior executive counsel at NFIB’s Small Business Legal Center. “Small-business owners are left to contend with an increasingly punitive landscape of overlapping and sometimes conflicting regulations that even a labor lawyer would have trouble interpreting. The result is a chilling effect on small-business growth and hiring.”

Of particular concern is a new NLRB rule that requires all private businesses to post unionization rights for their employees. Small businesses caught off guard by this new rule will be open to unfair labor practices claims. The rule is scheduled to go into effect this November, but NFIB is suing the federal government to block its implementation.

Generally, government regulations are a top concern according to NFIB research. The cost of regulatory compliance on small businesses is disproportionately high compared to larger firms, with small businesses paying around $10,500 per employee in compliance costs according to a government study.


NFIB is the nation’s leading small business association, with offices in Washington, D.C. and all 50 state capitals. Founded in 1943 as a nonprofit, nonpartisan organization, NFIB gives small and independent business owners a voice in shaping the public policy issues that affect their business. NFIB’s powerful network of grassroots activists send their views directly to state and federal lawmakers through our unique member-only ballot, thus playing a critical role in supporting America’s free enterprise system. NFIB’s mission is to promote and protect the right of our members to own, operate and grow their businesses. More information is available online at www.NFIB.com/newsroom.

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Category: Features