Government & Regulations

Government & Regulations

Protect Flexibility, Limit Overreach

Small businesses succeed by being nimble, innovative, and adaptable, yet these advantages are often threatened by various government mandates. Unlike large corporations with full compliance departments and a dedicated legal team, small business owners are often left to navigate compliance on their own, alongside their other roles. Small businesses are the most affected by one-size-fits-all mandates, which create barriers for entry, hurt competition, and subsidize established businesses.

SBAM supports a balanced regulatory climate that does not place unnecessary burdens on small employers, and a restrained policy approach when regulating the employer-employee relationship.

Limit Regulatory Overreach

Government regulation will always be present to provide a level playing field and to protect the state and its citizens. However, overregulation stifles innovation, restricts growth, and limits job creation.

SBAM encourages governmental restraint when enacting regulations that have the potential to harm small businesses.

To reduce harmful unintended consequences and to promote more sensible regulation, SBAM supports implementing a Regulatory Impact Statement for all new regulations. This statement should include a cost-benefit analysis to detail the steps taken to reduce the impact on small businesses.

Regulators should also consider regulatory competitiveness and should avoid policies that make Michigan uncompetitive compared with neighboring states.

SBAM opposes allowing local governments to set independent wage or labor standards, which creates an inconsistent regulatory patchwork and adds an additional layer of complexity which small businesses struggle to navigate.

Promote Cooperation Between Regulators and Businesses

Small businesses want to comply with required laws and regulations, but the arduousness of navigating various overlapping requirements can lead to confusion and unintentional noncompliance.

SBAM supports a collaborative, educational approach to regulation where agencies serve as partners rather than enforcers.

Navigating various state agencies and regulatory agencies should not require a team of lawyers. SBAM supports the creation of a dedicated “One Stop Shop” within state government to help entrepreneurs access programs, permits, and compliance requirements in one place.

One Size Does Not Fit All

Small businesses operate differently than large corporations, and policy should reflect that. SBAM opposes legislative proposals that seek to create one-size-fits-all mandates that do not align with how most small businesses operate. To ensure that small businesses can continue to thrive in Michigan, policymakers must pursue legislation that maintains flexibility for small businesses and does not hinder them with needless burdens that provide no real value.

Support Independent Contractors

Independent contractors are a key part of the small business landscape. Not only do many small businesses utilize independent contractors to fill various roles in their businesses, but independent contractors are entrepreneurs themselves. To guarantee a stable ecosystem for both contractors and businesses, reliable consistency and clear bright lines are vitally important in these rules.

A nationwide trend of legislative proposals, both at the state and federal levels, seek to restrict or reclassify independent contractors as employees. SBAM opposes these proposals, which would make it harder to hire independent contractors and would strip contractors of their autonomy over their schedules, workload, and clients.