Tennessee State Victories
The following NFIB victories will make a real difference for your business.
Recent NFIB/Tennessee Victories:
Established regulatory flexibility review, saving small-business owners substantial implementation time and compliance costs
Answering the call from NFIB and others in the business community, the governor signed an executive order requiring that all state agencies conduct an economic impact review of new rules and regulations on small business. Small businesses will have a new recourse for challenging proposed rules and regulations when such rules cause a disparate economic and resource hardship for small business.
Passed affordable, portable and flexible health insurance coverage to put small businesses on more competitive footing with large businesses and labor groups
Working directly with the governor and the Legislature, NFIB actively participated in the design and development of a new state, employer and employee collaborative effort to provide affordable health insurance for lower-wage workers in small businesses.
Strengthened eminent domain laws, protecting private property owners against governmental land grabs
NFIB worked with the Tennessee Farm Bureau and others in support of new legislation to restrict the seizure by government of private property. The new law limits seizure through eminent domain to public safety and general public good, and restricts any seizure for commercial purposes.
Defeated a job-killing minimum wage proposal
NFIB took the lead in fighting against a proposal that would have established a new statute requiring payment of a state minimum wage rate would have set the rate at $1 per hour over the existing federal wage rate. Such a proposal would force small businesses to reduce jobs, reduce hours of work and/or increase consumer costs.
Enacted law to protect businesses from having add-on computer software taxed as personal property, saving substantial expense
NFIB worked with a broad business coalition to enact new legislation to define add-on computer software as not subject to tangible personal property tax. If such a tax were allowed to go into effect, the cost impact to business would have been substantial, both immediately and long term, as this would apply to all subsequent purchases of add-on software.
Defeated a 'pay or play' health insurance proposal that would have amounted to a 6 percent payroll tax
Organized labor groups have been pushing passage of legislation throughout the country that would force certain employers to either provide health insurance benefits at a proscribed level or be subjected to a payroll tax at 6 percent of wages paid. This tax would presumably pay for state provided health coverage. NFIB stood shoulder to shoulder with other business groups in defeated this ill-advised effort to tax business.
Kept employer costs low by defeating efforts to divert funds from the Unemployment Insurance Trust Fund
A well-intentioned but misguided effort to divert funds from the Unemployment Insurance Trust Fund for victims of domestic violence would deteriorate the value of this targeted employer fund and ultimately led to increased costs for employers.
Defeated a proposal that would have allowed a flood of potentially expensive lawsuits against employers
NFIB was actively engaged in killing legislation that would have established a new private right of action for comparable worth challenges and subjecting employers to both civil and criminal penalties for violation of this law. This proposal would have opened challenges of pay disparities beyond the company itself to other companies, in and outside of the state.
Workers' compensation insurance reform
Answering the call from NFIB and others in the business community, the Tennessee General Assembly passed a workers' compensation insurance reform package that will save businesses up to $68 million a year. This is significant reform of the state's workers' compensation laws and will go far in controlling skyrocketing premiums.
Health insurance mandate measure adopted
Thanks to an NFIB initiative, Tennessee lawmakers will no longer be able to mandate health insurance coverage for specific conditions without first considering the effect of the mandate on health insurance premiums paid by small businesses. Mandates drive up health insurance costs, and now there is a process by which data that proves this will be generated.
Stopped state income tax
NFIB was the only group to officially oppose the state income tax. Thanks to our well-informed members and other taxpayers, the General Assembly was told in 2002 that imposing an income tax was unacceptable, and that they needed to pay attention to the expenditure side of the question, like small businesses do.
2002:
Income tax
After four hard-fought years and many attempts, the pro-income tax forces seem to have called it quits, thanks in part to the vocal efforts of NFIB members. This is a major victory for Tennessee's sole proprietors and partnerships and every other small-business owner.
Health insurance
Last year, NFIB successfully fought a "Pay or Play" health insurance system that, if established, would have required employers to either purchase health insurance for employees or to pay a tax so that state government could insure them.
2001:
Small business taxes
NFIB helped defeat a proposed 2.5 percent payroll tax on businesses as well as several proposals for taxes such as the gross-receipts tax, sales tax on services and sole proprietorship/partnership taxes.
Mandated health coverage
NFIB's grassroots efforts were key to the defeat of a bill, which would have mandated health coverage for all businesses, or required them to pay a fee to TennCare.
Unemployment insurance
NFIB helped defeat a bill that would have diverted funds from the state's unemployment compensation fund to help pay for higher education. While the fund is at an all-time high, the money will be needed for benefits in less prosperous times.
Living wage laws
NFIB filed a bill that prevents local governments from passing costly ordinances, which mandate local businesses that contract with local governments to pay employees a "local" minimum wage, higher than the current federal or state minimum wage. While the bill stalled in the Senate Commerce committee, NFIB will work to have the bill re-introduced next session.
Workers' compensation
NFIB helped defeat a bill that would extend the time limit in which an employee could sue for a workers' compensation claim that involves an occupational disease from one to two years. The bill could have resulted in employers paying claims on injuries not even related to the job or occupation of the employee, ultimately increasing workers' compensation costs.
Drug-free mandates
NFIB successfully worked to defeat a union-backed bill that would have mandated drug testing for businesses that contracted with state and local governments.
2000:
Excise tax
The Senate Finance Committee passed a bill that would extend the 6 percent excise tax to sole proprietorships and partnerships on income over $100,000. NFIB once again had to stand its ground and alerted its members within 12 hours after the bill came out of committee. NFIB was instrumental in getting this bill defeated.
1999:
Payroll tax
NFIB helped lead the charge to defeat Governor Don Sundquist's payroll tax as well as taxing sole proprietorships and partnerships. The $1 billion dollar tax would have been the largest tax increase on small business in Tennessee history.
1998:
Workers' compensation
NFIB helped to pass workers' compensation reform acts in 1992 and again in 1996. Partly because of these actions, the average cost for workers' compensation coverage fell 8.2 percent in 1997 and will be reduced by 7.1 percent in March of 1998. These reductions, plus the opportunity for savings from NFIB's new insured workers' compensation program, should offer our membership savings in excess of the cost of NFIB dues.
1997:
Personal property taxes
Limited Liability Companies: NFIB helped defer a bill that would raise personal property taxes on businesses with expensive personal property. This bill will have a negative impact on our manufacturer members.
1996:
Welfare reform
Governor Don Sundquist, with the help of NFIB, was able to pass his "Families First" bill, which puts welfare recipients back to work.
Tennessee minimum wage
A $6.50 per hour minimum wage proposal was killed in committee with the help of NFIB.
