Naperville Lawyer Shares Insights: The Regulatory Flexibility Improvements Act

small business owner, Regulatory Flexibility Improvements Act, Illinois small business law lawyerWhen you start a small business, the advice of a business law attorney, such as the Naperville business lawyers at Gierach Law Firm, is a must. Regardless of the type of business you are beginning or operating, you will be dealing with a complex and often confusing regulatory framework. Environmental regulations, zoning laws, employee rights laws, health care regulations, and business licensing are just the tip of the iceberg. These issues can be a headache for a business of any size, but they can be particularly difficult for small business owners who often are responsible for ensuring compliance with all of these laws themselves. The first step in simplifying this process is working with an attorney you can trust. Congress is actually currently considering passing a law that might also relieve some of this burden.

Congress is Considering the Regulatory Flexibility Improvements Act

The way Congress is considering helping with the fact that small businesses just do not have the same regulatory compliance resources as bigger companies is by considering the Regulatory Flexibility Improvements Act (RFIA). Ohio’s Rep. Steve Chabot, a former small business owner and current chairman of the House Small Business Committee, recently told The Washington Post that one of his top priorities is the passage of RFIA. He has succeeded in getting the bill through the House, but now is waiting for the Senate to take action on it.

What would RFIA Do?

The Regulatory Flexibility Improvements Act is designed to give small businesses a larger voice in the federal regulation-making process. If this bill were to become law then federal regulators would be required to include the indirect impact of a potential regulation on small businesses in its assessment of the potential regulations. Under the current law, regulatory agencies are only required to conduct this sort of analysis when a proposed regulation poses a significant cost to small entities, and only requires the examination of direct impacts.

It is worth noting that while this bill has its pros, it also has its cons. Opponents of the bill’s passage argue that it is too broad, in that it does not just apply to regulations that affect small businesses. It also would affect regulations that in reality only affect large businesses, such as massive banks. This extra step in the regulatory process would slow down regulations that might actually help small businesses. So whether the bill would be a net win or a net loss for small business owners remains to be seen, and will likely depend on the extent to which the specific industry is federally regulated.

Contact Gierach Law Firm

When you need the guidance of an experienced Illinois small business law attorney, please contact Gierach Law Firm. When you call us at 630-756-1160 we will schedule an appointment to learn about your situation and determine how we can best be of service to you.