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August 15, 2023
Michigan Mid-Year Legislative Update: Part 2
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Elimination of Independent Contractors (1099 Employees & Sole Proprietors) On April 13, 2023, NFIB testified in opposition to a 16-bill package (HB 4390-4406) in House Labor Committee that would change Michigan’s independent contractor (1099 employees) to the same standard used in California – which would essentially, eliminate independent contractors. This package also included bills that would substantially increase fines and penalties for employers who make wage and hour errors, including the potential for felony charges and fund new employees in the Attorney General’s Office to go after business owners that are making errors – and punish them. NFIB is working closely with a large coalition of organizations to stop these harmful bills. Our efforts seem to be paying off, but it is imperative that legislators continue to hear from small business owners – you can take action HERE. Find more information on the bill package HERE. Repeal of the Local Government Labor Regulatory Limitation Act (Local Preemption) The Michigan House and Senate Labor Committees took testimony in June on House Bill 4237 and Senate Bill 171, which would repeal the local government labor regulatory limitation act. In 2015, in response to efforts by national groups to target local governments for minimum wage increases (eg: Los Angeles, Seattle, etc), NFIB worked hard to pass this Act which prevents local governments from passing their own paid leave mandates, minimum wage, etc. for private employers in their locality and creating a patchwork of employment regulations across Michigan. NFIB has submitted testimony and is helping to lead a coalition to prevent any changes to this prohibition on local governments. To read more and take ACTION, go HERE. Elimination of Non-Renewable Fuels The Senate and House have proposed legislation that would make Michigan “Carbon Neutral” by 2035, by using all renewable energy. The bills eliminate any biomass (methane gas capture, wood, etc.) from the definition of renewable – focusing on wind and solar. The bills are problematic for a variety of reasons, but most concerning is the broad rule making authority that gives state departments authority to eliminate the use of gas appliances (furnaces, stoves) in new construction, both residential and commercial. NFIB submitted a letter of opposition to the Senate Environmental and Regulatory Committee. Read more HERE. Repeal of the Fair and Open Competition in Governmental Construction Act (Project Labor Agreements) Both the House and Senate Labor Committees took testimony in June on House Bill 4231and Senate Bill 170 which would repeal the prohibition on local governments using project labor agreements. Before this law was passed in 2011, local governments could require any construction on local projects be union only. A non-union company could bid but would be required to pay the exact benefits and salary as if they were a part of the union, including paying into the union pension system. NFIB submitted written testimony opposing the bill and is also a part of a coalition focused on preventing the reemergence of project labor agreements. Read more HERE. Water Management Districts In June, the House Local Government Committee heard testimony on House Bills 4382 and 4383, which would allow neighboring municipalities to create “water management districts” to manage watershed and drainage issues. These management districts would have the authority to levy assessments and exercise eminent domain. NFIB is concerned because even though these water management boards are made up of local elected officials, they also include officials elected in different jurisdictions and in some cases, unelected bureaucrats. There is little oversight and ability for small business owners to appeal the board’s decisions and have their voice heard during the process of raising their taxes or having their land seized unjustly. NFIB submitted written testimony in opposition. Temporary Labor Service Agency (TLSA) Regulations and Prohibitions In June, NFIB submitted written testimony opposing House Bill 4034 in the House Labor Committee that would add an untenable regulatory burden to TLSAs. The paperwork required, information collected, along with licensing fees with the potential to be 4 times what they are currently, would cause some TLSAs to close. For those remaining the increased fees needed to follow the law would make using a temporary staffing agency cost prohibitive for most small businesses, hurting their ability to operate and grow.
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