09/24/2007
NFIB is gearing up for a fight this fall as Congress prepares to revisit the Ledbetter Fair Pay Act and the Davis-Bacon Act, two pieces of employment legislation that would hit small business where it hurts the most--its pocketbook.
Ledbetter Fair Pay Act
In May, the Supreme Court ruled that there is a limit as to how far back a plaintiff can look when seeking damages in a disparate pay claim under Title VII in the Civil Right Act, a case in which NFIB's Legal Foundation filed an amicus brief. However, in July, the House overturned this decision, passing H.R. 2831, the Ledbetter Fair Pay Act of 2007, by a vote of 225-199. The Senate is expected to vote on this legislation this fall.
We are ready to again challenge this legislation, as it is harmful to small business. If the Senate passes the Ledbetter Act, small-business owners will find themselves defending employment decisions from years ago brought by employees armed with circumstantial evidence. This erroneous piece of legislation harms small-business owner and employee alike, as it:
- Forces employers to defend employment decisions that occurred in the distant past
- Removes incentives for employees to act immediately when they are subjected to discrimination
- Discourages the offering of retirement benefits, as it contains a "pension annuity check rule" that would allow an employee to bring charges against an employer so long as the employee receives benefit
Davis-Bacon Act
Also expected to see consideration in Congress this coming fall, the Davis-Bacon Act is a Big Labor-backed policy that effectively shuts small businesses out of bidding on federal construction projects. Davis-Bacon (also called prevailing wage) language requires that small businesses pay the local "prevailing wage" in order to perform government construction work. This prevailing wage is set using local union wage data, resulting in an artificially high wage requirement for government projects. Davis-Bacon wage requirements discourage small businesses from bidding for projects that will be funded by the federal government because the complex wage and work restrictions, not to mention paperwork, make it almost impossible for them to compete with larger corporations.
Congress has already voted to extend Davis-Bacon wage requirements to new energy projects, and NFIB will be watching this issue closely and will continue to oppose any new expansion of the Davis-Bacon Act.
Stay tuned to NFIB.com in the coming months as these bills develop on Capitol Hill.
