Small Businesses Explain Negative Impact of Minimum Wage Increase for Federal Contractors in Latest Brief

Date: June 27, 2023

Nebraska v. Walsh concerns a DOL rule on increasing federal contractors’ minimum wage

WASHINGTON, D.C. (June 27, 2023)NFIB filed an amicus brief in the case State of Nebraska, et al. v. Martin Walsh at the U.S. Court of Appeals for the Ninth Circuit. The case questions whether the Department of Labor’s (DOL) rule on increasing the minimum wage for federal contractors goes beyond the authority delegated by Congress in the Federal Property and Administrative Services Act. NFIB argues against a federal minimum wage increase as it would have harmful financial consequences on small businesses.

“Small businesses don’t benefit from most federal mandates, such as the federal minimum wage increase for contractors highlighted in this case,” said Beth Milito, Executive Director of NFIB’s Small Business Legal Center. “If enacted, the rule will have financial burdens and cause job losses for small government contractors, small subcontractors, and small entities seeking to gain government contracts. Congress did not approve this minimum wage increase, nor did it grant DOL authority to increase the minimum wage for federal contractors. We ask the Court to enjoin the rule.”

NFIB’s brief argues two main points: 1) the Procurement Act is a limited Congressional delegation of legislative authority, and 2) the court must subject the rule to meaningful judicial review. NFIB filed the amicus brief with the Pacific Legal Foundation.

The NFIB Small Business Legal Center protects the rights of small business owners in the nation’s courts. NFIB is currently active in more than 40 cases in federal and state courts across the country and in the U.S. Supreme Court.

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