Contact: Bill G. Smith, 608-255-6083
Madison (September 19, 2011) — The National Federation of Independent Business (NFIB) filed a lawsuit Friday on behalf of small businesses in Wisconsin and elsewhere challenging an intrusive new rule issued last week by the National Labor Relations Board (NLRB).
The “Notice Posting Rule” requires private-sector employers to post a notice in their business informing employees of their right to unionize; failure to do so will constitute an independent “unfair labor practice” that subjects businesses to increased scrutiny, likelihood of investigation and an indefinite expansion of the statute of limitations for filing any other unfair labor practice charge.
“With this latest rule, the NLRB has gone too far, passing a mandate that vastly exceeds its authority—largely at the cost of the small-business community,” said Karen Harned, executive director of NFIB’s Small Business Legal Center. “In filing this lawsuit today, we are joined by thousands of men and women around the nation who are standing up against the anti-business attitude that is reflected in actions of Washington’s regulators. It is truly a wonder why the government continues to treat job creators as the bad guys.”
In its lawsuit the organization argues that the NLRB’s new rule is a gross overreach of its statutory authority under the National Labor Relations Act (NLRA). Moreover, the rule, which takes effect on November 14, 2011, will impact employers with no history of NLRA violations. According to NFIB’s estimates, the rule will impact up to six million private-sector businesses around the country.
According to Wisconsin State Director Bill G. Smith, the rule typifies the Obama administration’s increasingly aggressive regulatory agenda, which he said adds to general sense of uncertainty that is discouraging job growth.
“Every time they impose a new rule, whether it’s from the NLRB or the health care bureaucracy or the EPA, they discourage small business owners from hiring new employees,” said Smith. “That is not what Wisconsin’s economy needs right now.”
The lawsuit asks the court to set aside the rule and declare that the NLRB’s action violates the NLRA.
NFIB previously argued in its public comments on the proposed rule that in the absence of an election petition or a finding of an unfair labor practice, the NLRB lacks the authority to require employers to post any notice, especially a notice far more detailed than those required when the NLRB’s jurisdiction is properly invoked. Further, small businesses are particularly vulnerable to accidental violations because the regulatory compliance burden most often falls on the small business owner and because small businesses do not have dedicated compliance staff. These arguments are reiterated in today’s complaint.
Joining today’s lawsuit are the National Right to Work Legal Defense and Education Foundation, an employee advocacy group, Mike Sullivan, owner of Southeast Sealing, Inc., located in Conyers, Ga., and John F Brinson, CEO of Lehigh Valley Racquet & 24-7 Fitness Clubs in Allentown, Pa., both small-business owners and NFIB members.
NFIB is the nation’s leading small-business advocacy organization, representing 350,000 small businesses around the country.
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NFIB is the nation’s leading small business association, with offices in Washington, D.C., and all 50 state capitals. Founded in 1943 as a nonprofit, nonpartisan organization, NFIB gives small and independent business owners a voice in shaping the public policy issues that affect their business. NFIB’s powerful network of grassroots activists send their views directly to state and federal lawmakers through our unique member-only ballot, thus playing a critical role in supporting America’s free enterprise system. NFIB’s mission is to promote and protect the right of our members to own, operate and grow their businesses. More information is available online at http://www.NFIB.com/newsroom.
