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Updates


Speaker Ryan: Overregulation is having a “Chilling Effect on Growth”

By: Nick Johns

The U.S. GDP grew just 0.5% in Q1 2016. With one year left in President Obama’s tenure as Commander-in-Chief during which the U.S. has experienced a 1.55 percent annualized average of RGDP growth, he may become the first President to never have a year of 3% GDP growth.

Speaker Ryan’s new plan, Confident America, intends to boost economic growth and social mobility for the United States through a range of policy fixes. In a recent weekly briefing, Speaker Ryan mentioned two issues which are important to franchisees: overtime and joint employer.

Ryan said: “The policies that have been pursued by this administration, specifically these regulatory policies: the fiduciary rule, overtime rule, joint employer — and that's just one from agency. These are putting a chilling effect on growth. These are compromising businesses.”

The new overtime rule will reduce flexibility for millions of workers who will now have to keep stringent timekeeping requirements, and will impose heavy compliance costs on small businesses.

And the joint employer will have disastrous impacts on not only franchise small businesses, but any business that uses contractors and subcontractors, with the nebulous new “indirect” or “potential” control standard.

It is great to see that Speaker Ryan recognizes the negative impacts of this regulatory “dark matter” that continues to dampen the economic recovery. Hopefully, Congressional leaders in both houses will also recognize the importance of federal legislation rolling back both cases of regulatory overreach to ensure the prosperity of a confident American future.

Posted: 2016-04-29 12:15:43

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