The Labor Regulation That's Costing Small Businesses

Date: August 28, 2015

New expedited union election times put business owners in a tough position.

Football season is just gearing up, but new data regarding a National Labor Relations Board ruling shows that small businesses have been getting sacked over the last few months—often without enough time to prepare for the loss. 

Union-organization election times have fallen by 40 percent since an April NLRB ruling took effect, according to a recent Wall Street Journal article. Average election process time for private-sector workers is now roughly three weeks, compared with five weeks or more in the last fiscal year, WSJ reported. 

NFIB has opposed the “ambush election rule” because it provides unions months to organize campaigns that can take owners by surprise, leaving them without enough time to properly prepare or find a legal counsel. In particular, small businesses that don’t have legal or HR staffs are especially hurt. 

“It is a costly thing for a small business,” NFIB Media Director Jack Mozloom told the Wall Street Journal. For businesses facing these challenges, read NFIB’s guide to managing unionization efforts and join NFIB to get your voice heard on all issues affecting the small business community

Businesses now have less time to prepare cases against challenges, with a median time of 23 days. As the Wall Street Journal reports, one Orlando, Florida, business lost an election in as little as 17 days. 

Unions had already been winning about two-thirds of elections before the rules changed. 

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