As Donald Trump continues to cut Federal regulations, local and state governments are going the opposite direction by implementing new employer regulations. A new infographic by Paychex highlights five areas where state and local governments are adding layers of regulation on employers.
The Rise of State and Local Employer Regulations
Titled, “The State of Change: Amid Federal Regulatory Uncertainty, State and Local Employer Regulations Are on the Rise,” the infographic looks at:
- Equal Pay and Salary History Restrictions — Five states have passed legislation to expand equal pay laws while eight jurisdictions have passed rules to restrict salary inquiries.
- Paid Leave Laws — Five states and one city have passed paid family leave laws and as many as 45 states and localities have passed paid sick leave legislation.
- Health Care Reform — Potential changes in the Affordable Care Act (ACA) have led 14 states to enact laws about the new state innovation waivers.
- State Retirement Plans — Nine states have passed legislation to create individual retirement programs.
- Payroll Cards — Five states have bills pending or have passed laws to govern the use of payroll cards.
The Washington Post has reported the Trump administration plans on pulling or suspending 860 pending regulations. And many businesses are happy he is keeping this campaign promise as they fight mandatory minimum wage and other regulations.
Paychex president and CEO, Martin Mucci, points out the argument both sides are making. For the deregulation point of view, he explains:
“The Trump administration is actively moving forward with its plans to create a more business-friendly environment. Part of that agenda is the reduction of current regulations impacting employers.”
As for why the states are creating more regulations, Mucci adds, “With the intent of advancing worker protections, state and local governments are responding, ushering in a new wave of employer-facing regulations.”
No matter which side of the political spectrum you stand on, there is no disputing the number of federal regulations on the books. And while local, state and federal governments have different perspectives, it’s important to remember small businesses employ around 60 million people or 47.8 percent of US employees (SBA 2016), so regulating them out of business will not help anyone.
Check out the Paychex infographic below.