SURVEY: Small Business Wants Lawmakers to Block Cities' Own Employer Mandates

Date: January 09, 2019

NFIB members in Texas overwhelmingly support legislation that would bar cities and counties from imposing their own wage and benefit mandates on employers. 

NFIB, the nation’s leading small business advocacy organization, balloted its Texas members before the start of the 2019 legislation session and found that 90.4 percent of those responding believe lawmakers should stop local governments from enacting their own labor laws. This year’s legislative session began Tuesday. 

“The question of whether cities can impose their own employment and labor laws will be a big issue for small businesses this session,” said Annie Spilman, NFIB’s state director for Texas.

In November, the Texas Court of Appeals, Third District, ruled NFIB and other groups challenging Austin’s paid sick leave ordinance were entitled to an injunction and that the ordinance is preempted by state law. The case was remanded to the lower court for further proceedings.

“That was an important victory for small businesses, but we’re urging lawmakers to pass legislation making it crystal clear that employer mandates such as paid sick leave should be addressed at the state level,” Spilman said. “Otherwise, we’ll end up with a patchwork of rules and regulations that would create confusion for small businesses, especially those with mobile employees.”

Other Issues

Unlike other business groups, NFIB’s public-policy positions aren’t determined by a board of directors but are based solely on the position of a majority of its members as determined by its state and federal member ballots.

According to the 2019 Texas member ballot:

  • 86.6 percent of NFIB members here don’t believe residents should pay a penalty for declining to carry health insurance.
  • 91.7 percent support the repeal of legislation that essentially endorses union membership by requiring state government to collect union dues from public employees.

“Our members don’t believe that taxpayers should have to foot the bill for unions’ political or electioneering activities,” Spilman said. “If state workers want to join a union, they can, but it public officials shouldn’t be forced to collect the dues.”

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