Welcome to the December 1-5 edition of the Main Street Minute from your small-business-advocacy team in Sacramento.

NFIB Asks Court to Reject California’s Overreach

We expected this would happen in the October 6-10 Main Street Minute, and we’re glad it did—a lawsuit reminding everyone that federal law supersedes state law.

“Perhaps if you take enough drags off that hash pipe of being the world’s fourth-largest economy, the mind becomes addled into believing you can do anything. Assembly Bill 288 (McKinnor), which Gov. Gavin Newsom signed into law last Tuesday (September 30), is an example.

“In a nutshell, it seeks to enforce workers’ collective bargaining rights for certain private sector employees when the federal National Labor Relations Board (NLRB) fails to act in a ‘timely manner,’ thereby usurping federal authority. It would give these enforcement powers to the state Public Employment Relations Board (PERS).”

Last Tuesday (November 25), NFIB and four other business groups filed an amicus (friend of the court) brief in the case of National Labor Relations Board v. State of California and the Public Employment Relations Board.

“This Court should hold that AB 288 and the amendments it makes to California’s Labor Code are preempted by the NLRA [National Labor Relations Act],” said the brief. “The amendments would allow a state board to regulate matters exclusively within the NLRB’s jurisdiction. But the state cannot do that. These matters are governed by federal law and federal law alone.”

In a news release NFIB sent the next day (November 26), NFIB California State Director John Kabateck said, “Between our outstanding unemployment insurance debt, the ongoing shortage of qualified workers, and rising costs all around, California’s small businesses do not need more regulatory complexity muddling the already challenging labor situation they are facing. This law [AB 288] will have perilous consequences for small businesses in the Golden State and for labor relations across the country.”

Start the New Year Informed

This Wednesday (December 3) at Noon/Eastern, 9 a.m./Pacific, NFIB is hosting a free webinar, Reset for 2026: Legal and Tax Updates for the New Year, with Beth Milito, executive director of NFIB’s Small Business Legal Center. Make your reservation here.

In addition to the latest tax information, Milito will also discuss new employment laws and emerging trends, such as immigration enforcement and new data privacy and wage-and-hour laws taking effect.

And speaking of Milito, NFIB California thanks her again for co-hosting a virtual event on state and federal issues, along with NFIB California Legislative and Policy Director Tim Taylor. Click here to watch.

Have You Signed the Petition?

If you haven’t already, please sign the petition to repay California’s unemployment insurance debt. We now owe $21 billion to the federal government—the only state still in arrears. You can help NFIB close the year out with a strong message to legislators returning on January 5 to start the 2025 session. Click here for more information and to sign the petition.

NFIB intends to play a front-and-center role next year in urging policymakers to settle this debt — and remove the cost burden on Main Street, small business owners once and for all.

Stay tuned.

Calendar

— December 4, release of next NFIB Jobs Report

— December 16, release of next NFIB Small Business Optimism Index

— December 16, next eNews to the entire California membership

— January 5, 2026: Legislature reconvenes

National

Highlights from Federal Government Relations Principal Louis Bertolotti’s weekly report

— The House and Senate were both in recess last week for the Thanksgiving holiday.

— NFIB sent a press release on our support for Rep. Mark Messmer’s Heat Workforce Standards Act of 2025. Principal of Federal Government Relations Dylan Rosnick said, “The proposed OSHA Heat Standard fails to recognize the fact that employers already are combating heat-related injuries or illness … The proposed regulation would punish businesses who already work without government intervention to protect their employees.”

— The first Small Business Saturday took place on November 27, 2010. It became officially recognized the following year, when President Obama’s administration celebrated the holiday in Brunswick, Maine. By 2023, consumers were fully bought in, spending over $17 billion at small businesses. Today, the SBA maintains a website on how to participate.

Next Main Street Minute: December 8. All Main Streets Minutes can be found on the NFIB website here. Pull down the California tab in the upper-right-hand corner.