Backgrounder

Small Businesses Before Bureaucrats Backgrounder

Bill name: Small Businesses Before Bureaucrats Act, H.R. 7743
Sponsored by Rep. Bob Good (R-VA)

Background: The National Labor Relations Act applies to private-sector businesses that have a gross annual volume of business above certain financial thresholds, depending on the industry. A retailer, for example, falls under NLRB authority when revenue exceeds $500,000 per year. For many non-retail businesses, that number falls to $50,000.  Those thresholds for the National Labor Relations Board’s jurisdictional standard were set in 1958.

Rep. Good’s “Small Businesses Before Bureaucrats Act” seeks to modernize the NLRB’s jurisdictional standard by increasing the financial thresholds by a multiple of ten.  Small business owners would once again be able to operate their businesses without the threat of interruption by government bureaucrats, just as was set in 1958.

In a statement announcing the bill’s introduction, Rep. Good said, “Our nation’s small businesses should be able to operate freely without facing the threat of a federal agency imposing mandates that can put them out of business.”

Summary: Under Good’s bill, the jurisdictional standard for non-retail businesses would increase from $50,000 to $500,000 and retailers from $500,000 to $5 million. The various other “special categories” in the NLRB’s jurisdictional standards, such as health care and childcare institutions, would also increase by a multiple of ten.

Upon enactment of this legislation – and the immediate update to the NLRB’s jurisdictional standards – there would be further, annual updates based on a “Personal Consumption Expenditure Per Capita Index,” as completed by the U.S. Bureau of Economic Analysis, to reflect changes in expenditures for personal consumption by Americans on a per-capita basis.  Thereby the jurisdictional standards would keep pace with the changing economy and avoid once again becoming outdated.

Additional Resources

PRESS RELEASE: Rep. Good Introduces the Small Businesses Before Bureaucrats Act
March 12, 2022, Office of Rep. Bob Good

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