Overview
Title
To amend the National Labor Relations Act to adjust the dollar thresholds for National Labor Relations Board jurisdiction over certain labor disputes, and for other purposes.
ELI5 AI
S. 4823 is a plan to change the rules about which small bosses the big referee (called the National Labor Relations Board) can help with when bosses and workers disagree. It's going to make it so that fewer small bosses need to use the referee, by changing how much money they have to be dealing with before the referee comes in to help.
Summary AI
S. 4823 aims to amend the National Labor Relations Act by increasing the dollar thresholds that determine when the National Labor Relations Board (NLRB) can assert jurisdiction over labor disputes involving small businesses. For 2024, the threshold for these disputes will be increased tenfold compared to the previous threshold, and for subsequent years, the threshold will be adjusted based on changes in the Personal Consumption Expenditure Per Capita Index. This bill is intended to limit the NLRB's involvement in disputes among smaller businesses, allowing them greater autonomy from federal oversight.
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AnalysisAI
General Summary of the Bill
The bill in question is titled "Small Businesses before Bureaucrats Act" and aims to amend the National Labor Relations Act. The primary purpose of this legislation is to adjust the dollar thresholds that determine when the National Labor Relations Board (NLRB) can assert jurisdiction over certain labor disputes. Specifically, the bill proposes to significantly increase these thresholds starting in 2024 and introduce a system of annual adjustments based on the Personal Consumption Expenditure Per Capita Index. This measure is intended to potentially exclude smaller businesses from NLRB jurisdiction more reliably by raising the financial criteria needed for the Board to get involved in labor disputes.
Summary of Significant Issues
One of the key issues identified in this proposed legislation is the potential lack of detail in the method for calculating the new dollar thresholds. Such ambiguity could lead to inconsistencies in how NLRB jurisdiction is applied, causing confusion among businesses about their legal obligations or protections. This is particularly concerning for employers who might not have the resources to navigate complex legal landscapes.
Another significant issue is the reliance on the Personal Consumption Expenditure Per Capita Index for annual adjustments without a clear process for verifying this index. If the index's accuracy is ever questioned, it could lead to legal challenges or difficulties in implementing the legislation consistently.
Lastly, the application of the amendments to disputes decided after the enactment date might lead to legal uncertainties, especially for ongoing disputes initiated before the law was enacted. This could leave both employers and employees in a state of confusion regarding how their cases will be treated.
Impact on the Public and Stakeholders
Broadly speaking, the public might view this bill as a move to streamline the jurisdiction of labor disputes, reducing what some might see as bureaucratic overreach into small businesses. By adjusting the thresholds, the bill seeks to protect smaller employers from potentially burdensome involvement in labor disputes often more relevant to larger enterprises.
For small business owners, this bill may present a positive change by potentially freeing them from the complexities and legal expenses associated with NLRB jurisdiction. It might allow them greater flexibility in managing labor relations internally without the immediate concern of federal oversight.
On the other hand, labor advocates might see this bill as negatively impacting employees working for smaller companies. The increased thresholds might limit employees' access to the NLRB, a crucial mechanism for addressing grievances, thus weakening labor protections. The shift in jurisdiction questions may dilute the means employees have to combat unfair labor practices effectively.
In summary, while the bill aims to ease regulatory burdens on small businesses, it raises questions about potentially reducing protections for workers in these businesses. Both sides of the debate will need to consider the potential for increased legal ambiguity and the impact of shifting regulatory thresholds on their interests.
Financial Assessment
The bill S. 4823 focuses on adjusting the financial criteria that determine the jurisdiction of the National Labor Relations Board (NLRB) over certain labor disputes, particularly involving small businesses. It aims to amend the National Labor Relations Act to increase the dollar thresholds that guide the NLRB's jurisdiction and subsequently reduce federal oversight in smaller labor disputes.
Financial Adjustments and Calculations
The primary financial reference in this bill is the tenfold increase in the dollar threshold for the NLRB to assert jurisdiction over labor disputes for the calendar year 2024. The existing thresholds (though not specified in the bill) will be multiplied by ten to create a new standard, effectively reducing the number of cases where the NLRB may intervene, thereby granting more autonomy to smaller businesses.
After 2024, the bill proposes that the threshold will adjust annually based on changes in the Personal Consumption Expenditure Per Capita Index. The adjustment formula involves multiplying the 2024 threshold by a ratio derived from comparing the Index values for a given year to that of 2024. This mechanism introduces a dynamic element intended to align the threshold with economic changes, thereby ensuring that the criteria for federal jurisdiction remain relevant over time.
Relation to Identified Issues
One of the key issues with the financial references is the potential for inconsistencies in application. The bill lacks detailed guidance on how the calculation for the new threshold should be uniformly applied across different categories of employers. This raises concerns for employers who might find it challenging to determine when and if the NLRB will have jurisdiction over their disputes, based on their understanding of the threshold adjustments.
Another issue pertains to the reliance on the Personal Consumption Expenditure Per Capita Index for adjusting the threshold post-2024. The absence of a clear verification process or a system to handle disputes regarding the Index could lead to legal challenges. This reliance assumes the accuracy of the Index without providing a mechanism for addressing disputes over its applicability, potentially causing complication in its implementation.
Lastly, the bill stipulates that the threshold amendments apply to decisions made after its enactment. This provision might create uncertainties for employers and employees engaged in ongoing disputes that began before the bill’s enactment, as it could change the rules mid-process.
In summary, while the bill intends to provide financial relief and autonomy to small businesses by minimizing federal oversight, the mechanisms outlined for adjusting financial thresholds introduce areas of potential complexity and legal ambiguity that may require further clarification.
Issues
The method for calculating the new dollar threshold for National Labor Relations Board jurisdiction, as outlined in Section 2, might not be detailed enough, potentially leading to inconsistencies in its application. This can cause confusion among employers about whether the Board will assert jurisdiction in their specific case.
The reliance on the Personal Consumption Expenditure Per Capita Index for annual adjustments, as stated in Section 2, without a clear process for verification and handling disputes about the accuracy or applicability of this index, could result in legal challenges or implementation difficulties.
The clause in Section 2 specifying that the amendments apply to decisions made after the enactment date might cause legal ambiguities for ongoing labor disputes, creating uncertainty for employers and employees involved in disputes initiated prior to the enactment.
Sections
Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.
1. Short title Read Opens in new tab
Summary AI
The section provides the official short title of the act, which is the "Small Businesses before Bureaucrats Act."
2. Increase of dollar threshold for National Labor Relations Board jurisdiction over certain labor disputes Read Opens in new tab
Summary AI
The section outlines changes to the National Labor Relations Act by increasing the dollar threshold that determines when the National Labor Relations Board can decline jurisdiction over labor disputes. Starting in 2024, this threshold will be significantly raised and then adjusted annually based on U.S. personal consumption expenditure data.
Money References
- SEC. 2. Increase of dollar threshold for National Labor Relations Board jurisdiction over certain labor disputes.
- (a) In general.—Section 14(c) of the National Labor Relations Act (29 U.S.C. 164(c)) is amended— (1) in paragraph (1), by striking “That the” and inserting “That, except as provided in paragraph (2), the”; (2) by redesignating paragraph (2) as paragraph (3); and (3) by inserting after paragraph (1) the following: “(2) In establishing by rule under paragraph (1) any dollar threshold with respect to a class or category of employers for the purposes of declining to assert jurisdiction over certain labor disputes involving such class or category of employers, the Board shall establish such dollar threshold at an amount— “(A) for calendar year 2024, equal to the product of— “(i) the dollar threshold applicable to such class or category as of the day prior to the date of enactment of this paragraph, multiplied by “(ii) ten; and “(B) for any calendar year after 2024, equal to the product of— “(i) the dollar threshold applicable to such class or category for calendar year 2024 (after the date of enactment of this paragraph), multiplied by “(ii) the quotient obtained by dividing— “(I) the Personal Consumption Expenditure Per Capita Index (as published by the Bureau of Economic Analysis) with respect to such calendar year after 2024; by “(II) the Personal Consumption Expenditure Per Capita Index with respect to calendar year 2024.”. (b) Personal consumption expenditure per capita index.—The Director of the Bureau of Economic Analysis of the Department of Commerce shall prepare and annually publish an index reflecting expenditures for personal consumption by individuals in the United States on a per capita basis for the preceding year, beginning in calendar year 2025, and such index shall be known as the “Personal Consumption Expenditure Per Capita Index”. (c) Effective date.—The amendments made by this section shall apply to any decision of the National Labor Relations Board relating to the assertion of its jurisdiction over a labor dispute made after the date of enactment of this section. ---