New Legislation Would Protect Small Businesses from Duplicative Regulation and Higher Costs
March 23, 2026
A new bill introduced by State Representative Bill G. Schuette would help protect Michigan’s small businesses, licensed professionals, and job providers from unnecessary regulation and rising costs.
House Bill 5725 would codify Michigan’s long-standing regulatory compliance exemption, a common-sense provision that prevents businesses and professionals from being subjected to duplicative oversight when their conduct is already regulated under state or federal law. While the exemption has been in place for decades, it is currently at risk due to a case before the Michigan Supreme Court.
If the exemption were eliminated, small businesses across Michigan could face conflicting regulatory standards, increased litigation, higher compliance costs, and significant economic uncertainty even if they are not directly regulated themselves.
“If a small business isn’t already regulated, it’s dependent on a service or industry that is. Eliminating the regulatory compliance exemption would place a significant burden on Main Street businesses across Michigan, exposing them to duplicative red tape, greater risk, and higher operating costs,” said SBAM President and CEO Brian Calley. “Protecting this exemption isn’t just good policy – it’s essential to preserving the ability of small businesses to operate, grow, and compete.”
Business and industry leaders across healthcare, housing, hospitality, and other sectors have voiced support for the bill, noting that duplicative regulation would ultimately drive up costs for employers, workers, and consumers alike.
Representative Schuette has led efforts this legislative term to reduce unnecessary red tape and improve Michigan’s economic competitiveness. HB 5725 is part of a broader push to preserve regulatory clarity while protecting workers, families, and job providers.
SBAM supports policies that promote fairness, predictability, and affordability for Michigan’s small businesses – and will continue advocating for smart, balanced reforms that allow entrepreneurs to grow and compete.
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