New proposals making the rounds in Washington are being sold as reforms to help workers, but they could actually do the opposite.
A closer look at Missouri Senator Josh Hawley's labor reform proposals shows they would expand the role of government—making it harder for workers to earn a paycheck, for businesses to make payroll, and to hire new employees by:
- Rushing workers to vote on unionizing their workplace
- Forcing government-mandated contracts that strip choice from workers and businesses
- Imposing heavy fines that could punish honest mistakes
- Reinstating outdated rules that add costs without clear benefits
Let's explore how these proposals could impact workers, businesses, and the economy.
1. Rushed voting undermines informed and fair decisions
One proposal forces workers to vote on forming a union just 20 days after a union requests an election. This very short timeframe would not allow employees sufficient time to thoughtfully consider their options and make informed decisions about union membership.
- Leaves workers uninformed: This would limit a business's ability to share important information about how unionization could impact employees' jobs. Without this opportunity, workers may have to decide about their jobs and livelihoods without having all the facts.
- Overloads the system: The National Labor Relations Board (NLRB) would face unrealistic deadlines, which would result in errors that harm both workers and employers.
2. Government-mandated contracts strip away control from workers and businesses
One part of the proposal has already been introduced as legislation—the Faster Labor Contracts Act (S. 844). This would take away important flexibility for both workers and businesses, replacing negotiation with imposed terms.
- Government control: The government should not dictate contracts to private parties. Contracts are best left to mutual agreement between workers and employers.
- Workers lose their voice: Mandatory arbitration would allow the government to force contracts on workers without their approval, leaving them stuck with workplace rules, pay, and benefit structures that don't work for them.
- Businesses face high costs: The government could make employers enter expensive, long-term agreements, including risky pension plans. Such plans can strain finances, making it harder for businesses to grow, expand, or meet payroll obligations.
3. Heavy fines could target honest mistakes
The proposals include hefty fines for labor law violations, but this approach isn’t as fair as it may seem. Many “violations” are for minor or very technical issues where there was no ill intent. It’s like being hit with a $5,000 fine for staying in a parking spot just 5 minutes too long. Penalizing minor mistakes this harshly doesn’t solve problems; it creates new ones.
- Confusing rules and tough penalties: Violations often occur because of unclear regulations. For example, vague wording in workplace policies or dress codes can lead to fines, even for businesses trying to do the right thing.
- Small businesses suffer the most: Small businesses often struggle to navigate complex rules and regulations, and fines could jeopardize their future.
4. Outdated mandates add costs without benefits
There are plans to bring back workplace rules from the 1990s that aimed to reduce injuries. However, these rules were previously discarded because they were ineffective and complicated routine worker tasks.
- Vague workplace quotas: This proposal could make it harder for warehouses to set clear productivity standards to ensure everyone does their fair share. The result could slow operations, make work less fair, and raise prices.
- Rigid rules, added costs: These one-size-fits-all requirements ignore the needs of today's workplaces and add unnecessary expenses.
- Outdated and unhelpful: While workplace safety is crucial, Congress determined that rigid ergonomics rules were unworkable in 2001 and voted to scrap them. The new proposal would create more headaches for businesses without improving things.
Bottom Line
The government should prioritize solutions that make it easier—not harder—to earn a paycheck, meet payroll, and hire. Leaders must reject proposals that harm workers and businesses in their communities.
