Small Businesses before Bureaucrats Act
Summary
The "Small Businesses before Bureaucrats Act" aims to amend the National Labor Relations Act (NLRA) by adjusting the dollar thresholds used by the National Labor Relations Board (NLRB) to determine jurisdiction over labor disputes. The bill proposes increasing these thresholds significantly, potentially reducing the number of small businesses subject to NLRB oversight. This adjustment is intended to alleviate regulatory burdens on smaller enterprises.
Expected Effects
If enacted, the bill would lead to fewer small businesses being subject to NLRB jurisdiction, particularly in labor disputes. The dollar thresholds for NLRB jurisdiction would be increased substantially in 2026 and then adjusted annually based on the Personal Consumption Expenditure Per Capita Index. This could result in cost savings and reduced compliance burdens for affected businesses.
Potential Benefits
- Reduced regulatory burden for small businesses, potentially freeing up resources for growth and job creation.
- Simplification of labor dispute resolution for businesses that fall outside the NLRB's jurisdiction.
- Increased predictability in jurisdictional thresholds due to the annual adjustment based on the Personal Consumption Expenditure Per Capita Index.
- Potential for businesses to invest more in employee benefits and wages due to reduced compliance costs.
- May encourage more entrepreneurial activity by lowering the regulatory hurdles for new businesses.
Most Benefited Areas:
Potential Disadvantages
- Reduced protection for workers in smaller businesses who may lose access to NLRB remedies in labor disputes.
- Potential for increased labor disputes to be handled at the state level, leading to inconsistent application of labor laws.
- Possibility that larger companies could structure themselves to fall under the new thresholds, avoiding NLRB oversight.
- The shift in jurisdiction could strain state labor agencies, which may not be adequately equipped to handle the increased caseload.
- The formula for adjusting the threshold may not accurately reflect the actual cost of compliance for small businesses.
Most Disadvantaged Areas:
Constitutional Alignment
The bill's alignment with the US Constitution is primarily related to Congress's power to regulate commerce among the states, as outlined in Article I, Section 8, Clause 3 (the Commerce Clause). By adjusting the NLRB's jurisdictional thresholds, Congress is essentially redefining the scope of its regulatory authority over labor relations affecting interstate commerce. The bill does not appear to directly infringe upon any individual rights or liberties protected by the Bill of Rights.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).