NFIB Legal Counsel to Congress: “Who is minding the regulatory store?”

Date: July 15, 2015

For Immediate Release
Andrew Wimer, 202-314-2073 or 703-298-5938 (cell)
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House
Judiciary Subcommittee Looks at Obama Administration Regulatory Oversight

Washington, DC (July 15,
2015)
– The National Federation of Independent Business (NFIB) this
afternoon will warn Congress that the federal regulatory bureaucracy is a
runaway train and that the office in charge of approving regulations appears to
be asleep at the switch.

“Government regulations and red tape are one of the top
concerns of our members,” said Karen
Harned, Executive Director of the NFIB Small Business Legal Center
. “Most
small business owners can’t count on regulatory compliance specialists and
lawyers to help them keep up with all of the new federal regulations they must
follow. With an average of 10 new regulations a day, small business owners are
spending more time on paperwork and less time focusing on their business.
That’s bad for their bottomline and for job growth nationwide.”

Harned will testify this afternoon in front of a House
Judiciary Subcommittee on Regulatory Reform hearing reviewing the regulatory
actions of the Obama administration. The subcommittee will focus on the Office
of Management and Budget’s Office of Information and Regulatory Affairs, which
has final review over all impending regulations.

“Government regulations and red tape are one of the top
concerns of our members,” said Harned. “Most small business owners can’t count
on regulatory compliance specialists and lawyers to help them keep up with all
of the new federal regulations they must follow. With an average of 10 new
regulations a day, small business owners are spending more time on paperwork
and less time focusing on their business. That’s bad for their bottomline and
for job growth nationwide.”

Harned will testify about the disproportionate effects of
regulations on small businesses. Regulatory costs for small businesses are now
nearly $12,000 per employee per year, which is 30 percent higher than the
regulatory cost burden larger businesses face.

“OIRA is not performing the rigorous independent analysis
needed to ensure that the proposed benefits of a new rule truly outweigh the
negative economic impacts,” said Harned. “They are supposed to make sure that
the agencies are doing their homework, but instead they seem to be just acting
as a rubber stamp right now.”

She will present two potent examples of how agencies
recently failed to consider the harm done to small businesses by regulations. First,
the Environmental Protection Agency and Army Corps’ waters of the United States
regulation was pushed forward despite objections from the Small Business
Administration’s Office of Advocacy, who pointed out that the agencies refused
to conduct a required Regulatory Flexibility Act study.

Second, the Department of Labor recently announced a rule
more than doubling the salary threshold for required overtime pay. The rule
would be particularly expensive for small businesses in small or rural markets
where cost of living and average wages are low.

Harned will also express concerns about “midnight
regulations” that could be coming next year. NFIB believes that OIRA should clearly
state that agencies cannot push forward new rules after the 2016 election.

Finally, NFIB is concerned about how agencies are pushing
forward new policies outside the regulatory process. Harned will talk about an
upcoming NFIB report that documents how small businesses are affected by these “subregulatory”
activities. The report will be released in the coming weeks.

For more information
about NFIB please visit www.nfib.com.

#####

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