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A Letter from the President

December 23, 2019

Your team at SBAM keeps watch over all three branches of government to protect small businesses. And that’s been a big job this year as antibusiness interest groups have sought all three pathways to squeeze more out of entrepreneurs.

Just this past week, the Michigan Supreme Court opted against issuing an advisory opinion on the “minimum wage” and “paid leave time” laws. In the short term this is good because it means that the more moderate compromises passed by the legislature late last year stay in place. But we at SBAM have mixed feelings about the potential long term impact of this decision.

The fact that the issue is no longer before the court means the Attorney General could issue an opinion that the legislative compromise was unconstitutionally adopted and therefore the law would revert to a much more onerous standard. Or an individual law suit may be filed in a lower court which could require us to engage in an expensive, long term case.

For now, the status quo remains. But stay tuned.

We are constantly keeping watch over the bureaucracy where 2019 has brought many antibusiness proposals. Earlier this year the Trump administration raised the mandatory overtime threshold to about $35,000. That was considered by most to be a reasonable level. But now the Whitmer administration is proposing taking it to at least $55,000 in Michigan. This would be very costly for small businesses in both payroll and administrative expenses.

And then as part of the administrative rules for Marijuana licensing, the Whitmer administration has proposed licensees to obtain a contract with a Labor Union as a condition to get a license from the state. We are very concerned that if they get away with this unlawful requirement, they may apply it to other businesses and professions licensed by the state.

We are great at what we do here at SBAM, and we are thrilled to have you as a member. Our commitment in the new year is to remain vigilant in every branch of government at both the state and federal levels. Small businesses are the fabric of our society and we will work as hard as you do to deliver results.

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