A proposal to allow local governments in Michigan to establish higher minimum wages than the state law requires is under heavy fire from business groups like the National Federation of Independent Business. The group that’s made up largely of small and medium business owners is highly critical of the plan, sponsored by Berrien County Democratic Representative Joey Andrews. Here’s what NFIB had to say on the proposal:
The National Federation of Independent Business (NFIB),a leading small business advocacy organization, submitted testimony today against House Bill 4237, which would repeal the Local Government Labor Regulatory Limitation Act. Currently, this act prohibits a local unit of government from requiring an employer to provide employee benefits (paid or unpaid) that are not required by federal or state law.
“By repealing this act, Michigan could become a patchwork of different wage and benefit regulations across the state, severely hindering its ability to attract and retain new businesses,” said Amanda Fisher, NFIB State Director. “Given how much money and time this legislature and administration have focused on economic development, this is an ill-considered piece of legislation. Economic development dollars can only go so far in overcoming a poor regulatory and labor environment.”
Small businesses in particular would become overburdened by the nightmare of deciphering which laws applied to each location. Unlike larger businesses, small business owners do not have the extra time or capital in order to absorb additional regulatory burdens. At a certain point, small business owners cannot afford the myriad of increased costs and will make decisions including loss of jobs or the business itself.
Fisher pointed out that this bill would also severely restrict the flexibility that remote work has given many employees since the pandemic: “If an employer has to track the laws governing each locality where their employees reside, big or small, that employer will be forced to limit remote work in order to be sure they are complying with both state and local laws.”
“It is important to note that this policy is not about whether there should be an increase in paid sick leave, minimum wage, etc.,” concluded Fisher. “This legislation is about what governmental body should make those decisions for the people of Michigan. Small business believes that local governments have enough challenges providing the basic services that their citizens want and deserve. It is unnecessary for them to expand into policy areas that are more efficiently and appropriately the jurisdiction of the state and/or federal government.”
