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Regulatory Reform


Each year, federal agencies issue approximately 4,000 new regulations at an annual cost of nearly $1.1 trillion, according to the U.S. Chamber of Commerce. This amount is roughly equivalent to all U.S. individual and corporate income taxes paid annually and represents a huge hidden tax on the American public.

Overzealous regulation is a constant concern for NFA members, particularly in an unstable economy. Congress must step in and curtail costly regulations, particularly those of such anti-small business arms of government as the National Labor Relations Board (NLRB) and the Department of Labor (DOL), which often fail to consider the effect of its actions on the job creators of America. 


Over the last several years, the NLRB has been actively attempting to circumvent the legislative process by regulating the workplace. Unprecedented proposals include mandating posters emphasizing union organizing rights be posted in places of employment, initializing “quickie elections” for employee unionization, the formation of “micro unions” and issuing directives to consider franchisors as "joint employers" with franchisees greatly jeopardize the franchise model as well as employer rights. These recent actions illustrate an overreaching by regulatory agencies to manage and influence the private sector with union activities.

Last year, the DOL announced its plans to issue the final “persuader” rule in November 2013. After several delays, it is unclear when a final rule will be released. The proposed rule would require employers to file reports disclosing all consultants and attorneys who talk with employees—including management—about unionization. Initially released in 2011, this proposal will effectively silence employer opposition to union organizing and—if the final rule is similar to the proposal—will substantially interfere with employers’ access to legal advice on labor matters and with attorney-client privilege.

The NFA supports efforts to reduce federal regulations, particularly those that hamper job growth. Specifically, The NFA is concerned the NLRB and DOL have overstepped their bounds in introducing proposals regulating unionization of the workplace.