Small businesses are about to get hit with more regulations, House committee warns

House committee chair argues pending Department of Labor rule would place undue burdens on small businesses

EXCLUSIVE: The GOP chair of the House Committee on Small Business says the Biden administration appears determined to regulate small businesses into oblivion, and the Republican is pushing back against a pending rule change by the Department of Labor that he says will place further burdens on Main Street.

In a letter shared exclusively with FOX Business and sent to Acting Labor Secretary Julie Su on Thursday, Committee Chair Roger Williams of Texas warned the agency's proposed changes to the National Apprenticeship System would place "an especially high burden on small businesses by imposing difficult administrative requirements." The letter was also signed by a fellow Republican and committee member, Florida Rep. Aaron Bean.

Julie Su testifies at Senate hearing

Acting Labor Secretary Julie Su testifies before the Senate Health, Education, Labor and Pensions Committee during her confirmation hearing to be the next secretary of the Labor Department on Capitol Hill in Washington, D.C., on April 20, 2023. (Chip Somodevilla/Getty Images / Getty Images)

The rule’s purpose is to enhance the National Apprenticeship System by modernizing regulations for registered apprenticeships. However, Williams says the rule introduces significant changes to how training programs are structured, making it more difficult for small businesses to participate in the program.

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Reps. Williams and Bean argue the rule places an especially high burden on small businesses by imposing arduous administrative requirements that range from making mandatory disclosures from training sponsors, submitting an equitable recruitment plan, keeping records of employment decisions that affect apprentices and providing details about the operation, performance and advancement of the training program, among others.

McKenzie prefers to hire younger workers

A younger worker is seen on the job at a plumbing company. Apprenticeship programs are common in the trades. (Fox News / Fox News)

"These new requirements will discourage small business participation in the apprenticeship programs," the letter reads. "Discouraging participation in a program designed to bolster the American workforce is counterproductive. Especially given the labor shortage of skilled workers nationwide — nearly 90 percent of small business owners with job openings are struggling to find qualified applicants."

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"Apprenticeship programs are a critical way to increase the supply of skilled labor force in our country," Williams told FOX Business in a statement. "Unfortunately, this new rule from the DOL will make it harder for businesses to train a qualified workforce. We continually hear from Main Street America how challenging it is to find people capable of filling their job openings. This rule will do nothing to solve this problem and will only add more bureaucratic red tape for small businesses to navigate."

Rep. Roger Williams speaking in committee

Rep. Roger Williams, R-Texas, speaks during a House Financial Services Committee hearing investigating the collapse of FTX in Washington, D.C., on Dec. 13, 2022. (Al Drago/Bloomberg via Getty Images / Getty Images)

Williams has repeatedly pushed back against regulations both proposed and imposed by the Biden administration.

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According to data from the right-leaning American Action Forum, the administration has implemented 774 final rules costing over $450 billion during President Biden's tenure, adding over 286 million paperwork hours for businesses.