Regulatory Watch

Background

Government regulations and red tape can be a tremendous barrier to small business growth. Small businesses' regulatory compliance costs are 36 percent higher than large businesses so it is no surprise that regulations consistently rank as a top concern for small business owners. Roughly 3,300 regulations are in the pipeline this year and many of them will affect small businesses. 

Below are regulatory proposals that have been published in the Federal Register and are open for public comment. An agency publishes an initial regulatory flexibility analysis (IRFA) with a proposed rule if it expects that the rule will have a significant economic impact on substantial number of small businesses. The IRFA provides information about the potential effects of the proposed rule on small businesses.  

Agencies' initial analyses of small business impacts are not always correct or complete, so the Committee on Small Business encourages small businesses to file comments through the government's online portal, Regulations.gov, and tell federal agencies how the regulatory proposal will affect them. If you had trouble with an agency or regulation, please feel free to share your story with the Committee.

Regulations to Watch:

Department of Labor (DOL), Wage and Hour Division

Establishing a Minimum Wage for Contractors, Notice of Rate Change in Effect as of January 1, 2019

The DOL, Wage and Hour Division has issued a notice to announce the applicable minimum wage rate of $10.60 per hour for workers performing work on or in connection with federal contracts beginning January 1, 2019.  Currently, the federal contractor minimum wage is $10.35 per hour.  For tipped employees, the new minimum hourly wage will be $7.40 per hour beginning on January 1, 2019, an increase from $7.25 per hour. Executive Order 13658 establishes a minimum wage for contractors and requires the Secretary of Labor to make annual adjustments. (PUBLISHED 9-4-2018)

IRFA – No

View Notice here

Department of Labor (DOL), Wage and Hour Division

White Collar Exemption Regulations; Public Listening Sessions

The Wage and Hour Division of the Department of Labor has announced 5 listening sessions in September 2018 to examine white collar exemption regulations to The Fair Labor Standards Act (also known as the Overtime Rule). The listening sessions will gather input from the public regarding overtime exemptions for executive, administrative, or professional employees; costs and benefits associated with higher salaries; best methodology to determine salary; and whether the DOL should more regularly update the standard salary level and the total-annual-compensation level for highly compensated employees. (PUBLISHED 8-28-2018)

IRFA - No

Listening sessions will be held in Atlanta, GA; Seattle, WA; Denver, CO; Kansas City, MO; and Providence, RI

Reducing Regulation and Public Burden, and Controlling Cost

The Department of State has issued a request for comment to help the Department identify existing regulations, paperwork requirements, and other regulatory obligations that could be modified or repealed. Specifically, the agency is looking for comments that identify regulations that eliminate jobs, are outdated, or impose costs that are higher than benefits. This request for comment is in accordance with Executive Orders 13771, "Reducing Regulation and Controlling Regulatory Costs," and 13777, "Enforcing the Regulatory Reform Agenda." (PUBLISHED 8-7-2018)

IRFA – No

COMMENTS DUE 9-6-2018

United States Department of Agriculture: Animal and Plant Health Inspection Service

Lacey Act Implementation Plan

The Animal and Plant Health Inspection Service has issued a proposed rule that would establish an exception in the Food, Conservation, and Energy Act of 2008 to allow products containing a minimal amount of plant materials without an import declaration.  The agency expects this would benefit both small and large United States importers that would no longer have to identify and declare very small amounts of plant material in imported goods. The agency expects cost savings per firm between $56,700 and $407,900 annually, with annual government processing savings of between about $1,000 and $1,900. (PUBLISHED 7-9-2018)

IRFA - Yes

COMMENTS DUE 9-7-2018

Department of Energy (DOE), Office of Energy Efficiency and Renewable Energy

Energy Conservation Program: Energy Conservation Standards for Manufactured Housing

The DOE has issued a request for information regarding recently released data relating to certain aspects in developing energy conservation standards for manufactured housing. DOE is seeking comment on how the agency could refine the energy efficiency standard of manufactured housing. (PUBLISHED 8-3-2018)

IRFA - No

COMMENTS DUE 9-17-2018

Department of Interior, Fish and Wildlife Service, Department of Commerce, National Oceanic and Atmospheric Administration

Endangered and Threatened Wildlife and Plants; Revision of the Regulations for Listing Species and Designating Critical Habitat

The Fish and Wildlife Service and the National Oceanic and Atmospheric Administration have issued a proposed rule to clarify, interpret, and implement portions of the Endangered Species Act. Specifically, the agencies are revising procedures and criteria used for listing or removing species from the Lists of Endangered and Threatened Wildlife and Plants and designating critical habitat.  The agencies are also considering including economic or other effects of declaring areas endangered wildlife habitats. (PUBLISHED 7-25-2018)

IRFA – No

COMMENTS DUE 9-24-2018

Department of Interior, Fish and Wildlife Service (FWS), Department of Commerce, National Oceanic and Atmospheric Administration (NOAA), Department of Interior, National Marine Fisheries Service (NMFS)

Endangered and Threatened Wildlife and Plants; Revision of Regulations for Interagency Cooperation

The FWS, NOAA, and NMFS have issued a proposed rule to improve and clarify the interagency consultation process in regards to regulations associated with the Endangered Species Act. Specifically, the agencies are proposing to clarify key definitions, increase the use of programmatic consultations, and eliminate the need to reinitiate consultation in certain situations to avoid unnecessary costs while maintaining preservation of the endangered species. The agencies are seeking comment on the merit, authority, and means of these proposed changes. (PUBLISHED 7-25-2018)

IRFA – No

COMMENTS DUE 9-24-2018

Department of Transportation (DOT), Federal Motor Carrier Safety Administration (FMCSA)

Hours of Service of Drivers

The FMCSA has issued an advance notice of proposed rulemaking regarding the electronic logging device regulations for drivers of commercial motor vehicles. Specifically, the agency is seeking comments regarding potential changes to the short-haul hours of service limit; exceptions for adverse driving conditions; 30 minute rest break provision; and the sleeper berth rule. This request for comment is in an effort to understand how to best alleviate unnecessary regulatory burdens while maintaining driver and motor carrier safety. (PUBLISHED 8-23-2018)

IRFA – No

COMMENTS DUE 9-24-2018

Department of Health and Human Services, Food and Drug Administration (FDA)

Food Labeling: Calorie Labeling of Articles of Food Sold From Certain Vending Machines; Front of Package Type Size

The FDA has issued a proposed rule to revise the type size labeling requirements for the front of package food sold in glass front vending machines. Specifically, the FDA proposes to require that the type size of the calorie declaration on the front of the package be at least 150 percent the size of the net quantity of contents. The FDA expects that this rule, if finalized, would provide greater flexibility for food manufacturers and vending machine operators than existing regulations. (PUBLISHED 7-12-2018)

IRFA - No

COMMENTS DUE 9-25-2018

Rural Utilities Service, Department of Agriculture

Rural Broadband Access Loans and Loan Guarantees Program

The Rural Utilities Service is now accepting applications for fiscal year 2018 Rural Broadband Access Loans and Loan Guarantees Program. This loan program provides funds for the costs of construction, improvement, or acquisition of products to provide broadband in rural areas. Loans under this authority must be between $100,000 and $25,000,000. (PUBLISHED 3-28-2018)

IRFA - No

Applications under this NOSA will be accepted immediately through September 30, 2018

Department of Treasury, Internal Revenue Service (IRS)

Qualified Business Income Deduction

The IRS has issued a proposed rule concerning the deduction for qualified business income under section 199A of the Internal Revenue Code. The deduction is up to 20 percent of income for businesses operated as a sole proprietorship or through a partnership, S corporation, trust, or estate. This proposed rule is in accordance with changes to the Internal Revenue Code from the Tax Cuts and Jobs Act. The IRS expects this proposed rule to increase compliance hours on qualified small businesses between 30 minutes and 2.5 hours. (PUBLISHED 8-9-2018)

IRFA - Yes

COMMENTS DUE 10-1-2018

Federal Communications Commission (FCC)

Possible Revision or Elimination of Rules

The FCC has issued a request for comment regarding whether rules adopted in calendar years 2005-2006 should be removed, revised, or modified. Section 610 of the Regulatory Flexibility Act requires agencies to review the impact of regulations every 10 years. When reviewing regulations, the agency will examine the continued need for the rule, the nature of comments or complaints about the rule, the complexity of the rule, and the duplicative nature of the rule. (PUBLISHED 7-31-2018)

IRFA – No

COMMENTS DUE 10-29-2018

National Labor Relations Board (NLRB)

The Standard for Determining Joint Employer Status

The NLRB has issued a notice of proposed rulemaking clarifying whether two employers are a joint employer under the National Labor Relations Act. Specifically, this proposed rule would consider a joint employer only if the two employers share the employees' essential terms and conditions of employment, such as hiring, firing, discipline, supervision, and direction. Furthermore, an employer must possess and actually exercise substantial direct and immediate control over the essential terms and conditions of employment. The NLRB expects that the majority of the 5.88 million small businesses with employees in the United States could be impacted by this proposed rule. (PUBLISHED 9-14-2018)

IRFA - Yes

COMMENTS DUE 11-13-2018