Small Businesses Seek To Overcome Burdensome Regulations

Date: February 17, 2016

Onslaught Of New Federal Rules Poses Challenges, Opportunities For Business Owners

Small businesses are no stranger to dealing with onerous regulations at the local, state, and federal levels. However, under President Obama, new regulations have been implemented that have employers struggling. The Daily Caller reported that in particular, business groups and legislators have attempted to oppose changes in workplace regulations through legal challenges and legislation, warning “changes to overtime rules, union elections and contracting threaten businesses across the country.” However, while these challenges continue, small businesses must make sure they comply with current laws in a way that best helps them stay above the law while continuing to operate in a cost-effective manner. The Caller sought the advice of National Federation of Independent Business Senior Executive Counsel Elizabeth Milito and International Franchise Association Vice President of Communications Matthew Haller on ways that small businesses can remain in compliance while also seeking the best business environment.

First of all, Milito urged business owners not to ignore regulations, saying, “I don’t think these issues are going to go away. That’s why employers and business owners shouldn’t ignore them.” Specifically when it comes to the National Labor Relations Board’s push to “expand the joint-employer standard,” Haller urged business owners to remain engaged in understanding what’s at stake. He said, “One thing you got to do is get your head out of the sand and understand what’s going on. This will fundamentally change how businesses operate in America.” Meanwhile, employers can work to make their business one “where employees are comfortable speaking with their bosses” so that as many issues are handled internally as possible, rather than through government regulations. Milito added, “This is so employees are comfortable approaching you and not go off somewhere else. Have an open door policy.” Of particular importance is making sure your business is “in compliance with wage and hour laws,” Milito pointed out, adding, “It’s an area easy to get wrong.”

What This Means For Small Businesses

While government overreach remains an ongoing problem, the tips mentioned by two small business advocates can serve as an opportunity for small business owners to take stock of their workplace environment. Above all else, maintaining a rapport between business owners and employees is key to maintaining control of as much of the day-to-day processes of a small business as possible.

Additional Reading

NFIB previously reported on President Obama’s record-breaking regulatory year in 2015.

Note: this article is intended to keep small business owners up on the latest news. It does not necessarily represent the policy stances of NFIB.

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