House Republicans target rising fees, regulations for small businesses.
House Republicans Call for Accountability in Regulatory Attack on Main Street
House Republicans are calling on the Biden administration to account for increased fees and regulations in what they call a “regulatory attack on Main Street.”
The House Committee on Education and the Workforce has written an Aug. 15 letter (pdf) to Department of Labor (DOL) Acting Secretary Julie A. Su, signed by Chairwoman Virginia Foxx (R-N.C.) and Subcommittee on Workforce Protections Chairman Kevin Kiley (R-Calif.) expressing concerns and seeking clarification regarding the DOL’s compliance with federal law during the formulation of new regulations.
“During a recent hearing held by the Committee’s Subcommittee on Workforce Protections, we heard testimony that DOL has failed to comply with important rulemaking procedures,” the lawmakers said in their letter.
Related Stories
“The hearing examined how the Small Business Administration’s (SBA) Office of Advocacy found significant noncompliance with the Regulatory Flexibility Act (RFA) by the Wage and Hour Division (WHD). As part of our oversight, the Committee requests information relating to the concerns raised by the Office of Advocacy to ensure DOL is taking its RFA requirements seriously.”
The House Committee on Small Business put their support behind the correspondence, saying their committee has sent 39 letters to the Biden administration, questioning the implementation of over $400 billion in new regulations, which amount to over 230 million hours in new paperwork.
“The National Federation of Independent Businesses (NFIB) Small Business Legal Center noted in a review of the Office of Advocacy’s comment letters that there were 28 instances during the 117th Congress where agencies across the federal government failed to follow the RFA,” Ms. Foxx and Mr. Kiley went on. “DOL was responsible for nearly 18 percent of these failures.”
Focusing on How Department Operates
The Education and Workforce Committee is investigating the DOL to ensure it follows the RFA, a law that ensures government agencies consider how their rules affect small businesses.
The RFA says agencies must explain how a new rule could affect small businesses. They need to publish two types of analyses: one when they suggest a rule called the initial regulatory flexibility analysis (IRFA) and another when the rule becomes final (final regulatory flexibility analysis or FRFA). If a practice is thought to bring little or no harm to small businesses, agencies can skip these analyses, but only if the agency head confirms the lack of potential damage.
Republican leaders mentioned in their letter a review by the National Federation of Independent Businesses (NFIB) Small Business Legal Center. This review showed that the DOL frequently didn’t follow the RFA guidelines.
In a specific instance cited by lawmakers, the DOL issued both an IRFA and a statement suggesting that a new rule would have minimal impact on small businesses. This action reportedly caused confusion within the Office of Advocacy.
Additionally, the committee highlighted other occasions when the Office of Advocacy identified instances where the DOL failed to conduct the necessary rule analysis as mandated by the RFA. This consistent pattern underscores a deviation from regulatory guidelines.
The Committee underscores the importance of the DOL’s adherence to the RFA, asserting that failure to comply with these regulatory standards could potentially result in an incomplete understanding of how new regulations impact small businesses, potentially leading to complications and legal challenges.
Committee Requests
To address the noted concerns and to ensure the DOL takes the RFA seriously, the Committee is asking the department for written answers and explanations about specific suggestions from the Office of Advocacy.
Specifically, they are asking the DOL to explain why they sometimes include both an IRFA and a note saying a rule won’t have any significant negative impact on small businesses.
The DOL’s response to the Committee’s inquiry, which they asked to receive by Aug. 29, is thought likely to shed light on the agency’s commitment.
" Conservative News Daily does not always share or support the views and opinions expressed here; they are just those of the writer."
*As an Amazon Associate I earn from qualifying purchases
Now loading...