Small Businesses Urge Court to Affirm Separation of Powers

Date: April 01, 2024

Texas v. Biden concerns the minimum wage increase for federal contractors

WASHINGTON, D.C. (April 1, 2024)NFIB filed an amicus brief in the case State of Texas v. President Joseph R. Biden at the U.S. Court of Appeals for the Fifth Circuit. This case questions whether the President and Department of Labor (DOL) have authority to increase the minimum wage for federal contractors. NFIB’s brief argues that the lower court correctly decided that the DOL rule, Increasing the Minimum Wage for Federal Contractors, exceeded the statutory authority delegated by Congress.

“At a time when small businesses are battling historic inflation and labor shortages, this decision will have economic consequences for many small business contractors,” said Beth Milito, Executive Director of NFIB’s Small Business Legal Center. “Small business owners already strive to provide their employees with the highest wages and benefits they can afford. Mandating further increases to their operating costs will only make it harder for them to do so.”

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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