Business
Key Points
- States should not further restrict the options and rights of businesses and workers to negotiate their own wages by raising the price floor on the cost of labor.
- When occupational licensing or regulations, state legislatures should be required to show real harm and select the least-restrictive regulation to address that harm rather than impose further complicated red tape on those wanting to start a new business or career.
- Individuals should be free to decide for themselves whether or not they would like to join or contribute to a labor union without that being a precondition of employment.
Maintaining a healthy economy and fostering economic growth is one of the most important priorities for hardworking Americans. The cost of everyday life is increasing and people need to make sure that their job opportunities and paychecks keep up. Policymakers must create a plan of action that focuses on policies that increase economic opportunity, promote freedom of association and lower barriers to entry for new businesses.
Prioritizing the preferences of individuals by making union membership and contributions voluntary is an important reform that affects all businesses. Policies on organized labor should emphasize transparency and protect an individual’s choice regarding union involvement. No person should be forced to be a member of a union as a condition of employment or devote part of their paycheck towards political causes with which they disagree.
State occupational licensing boards should ensure licensure requirements for employment serve a valid public health and safety need, and that they provide individuals the most opportunity to succeed and contribute to the economy. Occupational licensing increases unemployment by about one percent, raises prices by about 15 percent, and offers no incremental consumer protection over a competitive market. Eliminating or reducing unnecessary occupational licenses gives individuals the freedom to pursue their desired career goals, free from arbitrary barriers to entry that favor incumbent firms in a particular industry.
Finally, policies on wages ensure individuals are free to make their own decisions and ensure that workers are not priced out of the labor force via government fiat. Setting price controls generally damages the economy by restricting decisions both businesses and individuals are able to make, and setting a price floor on wages is no exception. Maximizing the freedom of businesses and employees to negotiate their own wages is an important factor in helping both parties come to an agreement and thrive.
Model Policies
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The Home-Based Business Fairness Act Final
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF __________: SECTION 1. DEFINITIONS “Goods” means any merchandise, equipment, products, supplies or materials. “Home-based business” means any business for the manufacture, provision or sale of goods or services that is owned and operated by the owner or tenant of …
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Ordinance Establishing Mobile Food Vendors Final
ORDINANCE ESTABLISHING MOBILE FOOD VENDORS: WHEREAS, mobile food vending is a popular and diverse part of local economies across the United States; WHEREAS, [XXX Municipality] desires to support economic development, foster opportunities for small businesses and encourage mobile food vending; WHEREAS, [XXX Municipality] seeks to increase consumer access to desired …
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Prompt Payment Ordinance Final
AN ordinance concerning business. Be it enacted by the [Insert Governing Body],represented in the [Insert Jurisdiction]: Section 1. The Contractor Prompt Payment Ordinance as follows: A construction contract may provide for the withholding of retainage of up to 10% of any payment made prior to the completion of …
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Truth in Taxation Act Final
As used in this section: (1) “Taxing subdivision” means any political subdivision of the state that levies an ad valorem tax on property. (2) “Revenue neutral rate” means the tax rate for the current tax year that would generate the same property tax revenue as levied the previous tax year …
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Resolution on the Misapplication of Employee Classification Laws
WHEREAS, franchising contributes $1.6 trillion to the United States economy through 733,000 franchise businesses; and WHEREAS, franchise businesses employ over 13 million workers; and WHEREAS, franchising has been a major source of economic expansion in the United States, particularly in the retail trade and services sectors, providing entrepreneurs with a …
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Natural Hair Braiding Protection Act Final
Section 1. {Purpose} Natural hair braiding is a traditional practice that is safe. It presents no significant health and safety risks to customers or practitioners. This state should protect liberty. It has no interest in requiring practitioners to obtain an occupational license or other form of occupational regulation because such regulation …
Press Releases
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ALEC Scholar Dr. Arthur Laffer Receives Presidential Medal of Freedom
FOR IMMEDIATE RELEASE Contact: Daniel Reynolds [email protected] ALEC Scholar Dr. Arthur Laffer Receives Presidential Medal of Freedom Sound economics recognized by the President …
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Rich States Attract More Residents, Poor States Make Them Leave
Contact: Dan Reynolds [email protected] Rich States Attract Residents, Poor States Make Them Leave ARLINGTON, VA – (April 15, 2019) The American Legislative Exchange Council (ALEC) releases today, Rich States, …