Federal agencies, in turn, pass rules and regulations to govern how those laws are implemented.
In 2023-2024, this rule-making definition has become so blurred that rules and regulations are being passed that should be considered by Congress, as they are creating new laws and standards. When the democratic process is intentionally bypassed and federal regulators are treating the rule-making process like the wild west of lawmaking, our business community pays the price.
This government overreach, unfortunately, often leads to lawsuits costing millions in taxpayer dollars.
In April, the Federal Trade Commission issued a rule effectively banning private businesses from using non-compete agreements. By eliminating these agreements via the rule-making process, the federal government put intellectual property at risk, restricted business freedoms and impacted fair market competition. Legal challenges have been filed throughout the country, including in Texas where a federal judge ordered a stay for the plaintiffs.
Earlier this month, the Department of Labor implemented a rule raising the minimum salary threshold for non-exempt employees from $35,568 to $43,888. And starting next year, the threshold will increase to $58,656. Again, federal regulators are passing rules that will costs businesses millions in administrative costs and hundred of hours in administrative management.
Legal challenges have been filed throughout the country. More will follow.
Because of rules like these, our business community is wasting resources battling, suing and fighting unexpected administrative burdens. Instead, our time should be focused on working with Congress to pass important laws – like the repeal of the five-year amortization requirement for the Research and Development Tax Credit, which would have a sweeping positive economic impact on businesses throughout the country.
Federal agencies are passing laws disguised as “rules.” Deliberation and debate by Congress is essential to good government. But that process is being subverted. It is not easy to pass laws in Congress, nor should it be. The House and Senate are controlled by different political parties; and now presidential politics are distracting everyone from policy work.
Nevertheless, the process exists for a reason and as a federal government; regulators should find ways to respect the process instead of thwarting it.
Chris Kershner is the Dayton Area Chamber of Commerce CEO and President.