On Thursday, May 19, State Director of the Alabama National Federation of Independent Business (NFIB) Rosemary Elebash spoke with local business owners about recent legislation that would affect small businesses.
The NFIB is "the organization that represents small, independent business owners in all 50 states and in Washington D.C.," Elebash said. "Think about Main Street, and that's who NFIB represents."
President Barack Obama recently unveiled new rules regarding overtime that is estimated to "impact 44 percent of small businesses" by the NFIB.
"NFIB has fought and fought and fought the Obama administration over these new overtime rules," Elebash said.
The new overtime rules increase overtime salary thresholds from about $23,000 to about $47,000, according to information provided by Elebash and the NFIB.
NFIB suggests that small business owners should begin preparing for these rules by checking state and federal regulations regarding hours and wages, reclassifying employees to salary and monitoring overtime.
The overtime rules, according to Elebash, also affect governmental entities, such as city and county government groups.
Elebash said that employers should be open with their employees about any pay, hour or business changes that occur as a result of federal rules and regulation changes, specifically the new overtime rules.
"I think (these rules) could create a sense of, 'I'm not going to be advancing in this business' because of the new overtime rules, because the business owner changed them from a salary position to an hourly position," Elebash said. "Employees could look at that as 'I'm going backward instead of going forward.' With the way the new law is implemented, it's the only thing the employer can do. So, I think that open communication, using just the bare facts, (saying), 'This is why I'm having to do this. This is not my choice to do this; this is the government telling me to do this.' I think that is easier with a small business than it is with a very large business."
She said federal rules and regulations have largely been affecting small businesses. Elebash said a 2012 study found that federal rules and regulations have cost small business owners about $2.2 trillion. This means, according to Elebash, that employers are paying about $11,000 per employee to be compliant with federal rules.
In 2013 alone, 72 federal bills were passed that implemented about 4,000 new rules that affected small businesses, she said.
"I want you to take this with you, and I want you to look at this closely, because you as a business owner are going to have to change the way you do business," Elebash said about the overtime rules.
Elebash also announced several bills that were signed into law that she said were "pro-small business." She said there have been 65 bills passed since 2011 that have been pro-small business.
House Bill 36 creates a one-time, $1,500 tax credit for small businesses with fewer than 75 employees who hire a new, qualified employee.
HB 37 asserts that Alabama is a "right to work" work state. The public will vote on it in November.
"This is a great tool for economic developers to bring people to Alabama," Elebash said.
HB 109 and Senate Bill 131 create a tax deduction for small businesses that contribute to a Health Savings Account.
House Bill 174 caps minimum wage amounts. The minimum wage can be no higher than the federal minimum wage, which is $7.25 per hour.
SB 90 and HB 217 create an apprenticeship credit for small businesses that take an apprentice for up to four years. The credit is $1,000 and can be used for no more than five apprentices per small business.
Elebash said these bills would help alleviate the concern of many small businesses: a lack of an available, trained workforce.
"We're going to be working hand-in-hand with local community colleges to create a curriculum (to meet) the needs of the community for those workers that you need," Elebash said.
Two bills presented during the 2016 legislative session were SB 335 and HB 375, which focused on the practices of third-party audit and collection firms in Alabama.
"For years since I have been with NFIB, I have received complaints from business owners about third-party audit and collection firms," Elebash said.
Though the bill was not passed by a 7-to-6 vote, according to Elebash, the NFIB and legislators have asked the groups to "clean up their bad practices."
These "bad practices" include having auditors that were not licensed Certified Public Accountants, but were instead students receiving two year certification.
The groups are now required to identify whom the auditors are, their specific scope of interest and present a signed letter from the governmental entity with whom they have a contract, Elebash said.
These audit groups will also be required to present a letter from the governmental entity when requesting collections, she said.
"We were not asking for, we don't think, outlandish things because all the things we asked for, the Department of Revenue does today," Elebash said.
Finally, SB 263 and HB 251 will require Alabama Income Tax Returns to match the federal forms, which have changed.
Elebash said these bills show that legislators listen to the voices of small business owners.
"If you're a small business owner, you are the economic engine not only in Enterprise, but across the nation," Elebash said. "You're the most trusted people in America because people want to shop with you. Your voice can make a difference. Get to know your elected officials, call on them, let them know the issues that you are dealing with and probably there's a solution to it."
Rules of Conduct
Welcome to the discussion.
Log In
Current users sign in here.
Register