Obama-Era Union Rules Hit Small Businesses Hardest – But Changes Could be Coming!

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Obama Ambush Ruling Hurts Small Business More Than Others

Former President Barack Obama’s labor rules that cut down the time between filing for a union election and the vote have hit small businesses the hardest, The Washington Free Beacon Reports.

Obama’s National Labor Relations Board (NLRB), responsible for overseeing union elections and enforcing labor laws, changed rules governing the process of unionizing the workforce. The changes expedited the election process, cutting down the time business management is notified about an election to when voting begins, from 38 days to 23.

Obama Ambush Ruling

Obama’s “ambush ruling” has appeared to prop up the union success rate in winning elections. Overall, unions are back to winning about 69 percent of elections, which is on par for unions’ historic win rate. Unions usually win elections because they put off petitioning for a vote until they are reasonably sure they can win.

In 2015 after the rule took effect, unions won about three percent more than in 2014. Compared to 2012 and 2013 data, the jump was about 8 percent.

The effect is more pronounced at smaller firms with fewer resources and access to expert labor lawyers. Smaller firms are also less adept at addressing union filings and informing management of labor law.

“Before the rule was changed, the union-win rate for bargaining units with 25 or less people was 69 percent. In the three years since, the win rate went up to 74 percent,” management-side law firm Fisher Phillips’ Steve Bernstein told the Free Beacon.

The NLRB under President Donald Trump has begun reviewing the Obama-era rule changes.

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