NFIB Tells Local Governments to "Butt Out" of Benefit Decisions

Date: May 19, 2015

Tuesday,
May 19, 2015 (Lansing) –Small business cannot afford local micromanagement of
employer benefit policies, according to testimony today by the National
Federation of Independent Business (NFIB) before the House Commerce and Trade
Committee. The committee held a hearing on House Bill 4052 – The Local
Government Labor Regulatory Limitation Act – that would prohibit a local unit
of government from requiring an employer to provide employee benefits, paid or
unpaid, that were not required by federal or state law. The bill is sponsored
by Representative Earl Poleski (R-Jackson area).

“As
Michigan moves forward in changing our business climate to one that retains and
attracts business and the jobs they provide, policy makers must be vigilant in
avoiding the ‘one step forward – two steps back’ effect of state agencies and
local governments,” said NFIB State
Director Charlie Owens. “We
have worked hard as a state to transform our image as a place to do business
with important tax, regulatory and labor policy changes, but that hard work is
put into jeopardy when local governments attempt to create their own islands of
regulation and micro-management.”

Owens
said that too many times local governments layer on duplicative requirements
and regulations on small business at the behest of local activist groups or
advocates who are unsuccessful in accomplishing these policies at the federal
and state level. Owens also provided the committee with data from the Bureau of
Labor Statistics (BLS) that documented the high cost to employers of mandated
local benefit policies.

“Local
governments have enough challenges providing the basic services that their
citizens want and deserve,” said Owens. “It is irresponsible of them to expand
into policy areas that are more efficiently and appropriately the jurisdiction
of the state and/or federal government.”

In
some states, local governments have passed ordinances that establish a higher
minimum wage, require certain leave policies or other employer benefits that
are not required by state or federal law. Activists have indicated that
Michigan could be a target for such efforts in the coming year. According to
Owens and the bill sponsor, Rep. Earl Poleski, House Bill 4052 would prevent
these anti-business efforts from gaining ground in cities and communities
around the state.

HB 4052 was reported out of the committee and passed by the House the day after the hearing. NFIB will be working to move the bill through the Senate in the coming weeks.

For more information about this issue CLICK HERE

Related Content: Small Business News | Michigan

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