On Feb. 26, the House Education & the Workforce Committee held a hearing focused on over-regulation of business. Titled “Unleashing America’s Workforce and Strengthening Our Economy,” the hearing focused on the adverse impact of a slew of recent regulations, including overtime pay (the white-collar exemption) and worker classification.

Hearing witnesses included representatives from the hotel/lodging industry, economists, and the National Federation of Independent Businesses’ (NFIB’s) Small Business Legal Center. The hearing kicked off with comments by committee chair Rep. Tim Walberg (R-MI) suggesting that the current regulatory environment is hampered by “the Biden-Harris administration’s heavy-handed mandates” and noting President Trump’s “promises to enact pro-growth policies.”

Witnesses and committee members alike called harmful regulations a “hidden tax, siphoning resources away from productive use.” Witnesses and lawmakers agreed that “burdensome and unnecessary regulation reduces economic growth.”

 Prospects: Congress has already begun the process of rolling back what lawmakers see as harmful Biden Administration regulations, and more of these Congressional Review Act (CRA) motions are expected early in 2025. Further, many of the regulations that Congress objects to most strenuously (e.g., worker classification, joint employer, and overtime rules) have already been stopped by the courts. However, the downsizing of the federal government is sure to impact regulatory activity, so efforts to roll back adverse regulations is likely to proceed more slowly than the rhetoric might otherwise suggest.

 NAIFA Staff Contacts: Jayne Fitzgerald – Director – Government Relations, at jfitzgerald@naifa.org; or Mike Hedge – Senior Director – Government Relations, at mhedge@naifa.org