Austin News

The National Federation of Independent Business (NFIB) has been working to protect small-business owners in Austin from city government regulating the business practices of private employers – like mandating paid sick leave.

According to Rebecca Melancon, executive director of the Austin Independent Business Alliance, it’s not about the sick leave.

“Ordinances such as Paid Sick Leave hurt small, local businesses," Melancon told Texas Business Coalition. "It’s not that they are against paid sick leave. No business owner wants sick employees. We all agree that paid sick days are a community value. But these ordinances are usually designed to be very punitive to the business"

Melancon said when cities enact rules telling small business owners how to run their businesses (no matter the size), it often means using a one-size-fits-all sort of regulation, and not all business owners can afford to comply.

“The labor union demands on big industry, especially manufacturing, may be needed," she said. "But to apply those same standards to very small businesses is onerous.” 

Small business accounts for 99 percent of all business in Texas, she said. Austin entrepreneurs running small businesses with fewer than 20 employees accounted for 81 percent of total growth in all businesses.

"We should stop applying policies meant for businesses with thousands of employees and start looking at policies that work for small business," Melancon said.

Cities and the legislature should be looking to protect the ability of an employee to make choices and have some flexibility, not to force them to take individual benefits because a city says the business owner must give them.

“Approaching each benefit individually does not begin to address the comprehensive benefits most local businesses offer," Melancon said. "Flexibility is often seen as a huge benefit but extensive governmental controls imposed by proposed predictive scheduling destroys flexibility.”  

Legislation from cities and county government don’t work for small business owners, and business owners prefer being able to customize their benefits based on who their workers are, she added.

“In speaking to AIBA members, I find that they tailor their benefits to their individual workforce," saId Melancon. "A business with mostly young employees may find that they need more money and less sick time. A business with a staff of professionals may want a 401K and less flexibility."