During the week of July 22, 2024, the Office of Advocacy (Advocacy) held a comment tour in Austin, Texas. This tour was an opportunity for the DC staff to visit Austin and learn directly from small businesses the challenges they face. Region 6 Advocate Janea Jamison, who provides outreach to Louisiana, Oklahoma, Arkansas, New Mexico, and Texas, met up with the DC staff and organized most of the events. The Small Business Administration’s San Antonio Small Business Development Center and a representative from SCORE also attended. Each small business present provided introductions.
Assistant Chief Counsel Janis Reyes presented a PowerPoint and engaged the small business owners with personal stories of her family’s struggle, who are immigrants, on running a small business. Many small businesses aren’t aware of final regulations that could affect their workforce, such as the Labor Department’s Overtime Threshold rule. This final rule changed the overtime exemption for executive, administrative, and professional employees, raising it from $35,568 to $43,888 on July 1, 2024, and $58,656 on July 1, 2025. Small businesses told Advocacy that their operations will be negatively affected when the salary threshold reaches $58,656, as salaries in Texas are lower than other regions.
As Reyes answered questions, she asked each small business owner how these rules would affect their business, such as what types of compliance costs they would incur. Assistant Chief Counsel Bruce Lundegren gave a thorough rundown of topics he covers. Occupational Safety and Health Administration’s (OSHA) Heat Injury and Prevention rule was another rule which animated the room. Lundegren explained how many rules are vague, which open doors to legal challenges. One small business owner asked, “How would the rule affect daycare workers? A daycare worker wouldn’t leave unattended kids outdoors to take a mandatory break, right?”
Lundegren explained how the agency, in this case OSHA, needs to hear directly from small businesses. He encouraged the small business owners to write comment letters and send them directly to the agency. In addition, he mentioned owners could attend Advocacy roundtables to make Advocacy aware of how these rules will impact their business.
Following Lundegren’s discussion, Assistant Chief Counsel David Mullis presented a slideshow on 5G & Broadband Funds. Mullis talked about a program for a 5G fund for rural America. Audience members asked how broadband funds were designated and inquired about government ownership of the fiber lines. One commenter online asked, “If federal funds are allocated to different fund offices, is there a cap on companies being given federal funds?”
In the room, a small business owner stated, “I have concerns that the small providers funds will go to the bigger companies.”
The Office of Advocacy left the small business owners with three takeaways that the office would like to know from small business owners:
- How does the rule impact your business?
- How much will the rule cost to your business?
- What would you like Advocacy to do about the rule or what alternative to the rule would you like to see?