State Laws Harming Some Small Businesses

Small businesses have had to face numerous challenges in recent years, including new laws designed to protect workers in certain states.

For example, Illinois recently passed several laws to support workers, like an increased minimum wage and mandatory paid leave. Small business owners largely agree that these laws are beneficial for employees, who certainly deserve fair compensation. But on top of the other issues businesses are dealing with, like inflation, high corporate state income taxes, and pandemic recovery, these laws can make it difficult to sustain profitable businesses.

Some small business owners in Illinois recently spoke to 25 News about these challenges. They generally understand the need for worker protections, but wish the state would take the needs of small businesses into account more often when crafting legislation.

Katie Kutsunis, owner of women’s clothing store Four Seasons, told 25 News, “It’s no different from when you have a little baby or toddler at home. You help them more. You help them learn how to crawl and then walk. The state should learn to help the little guys crawl and walk, and hopefully, they can become the big business.”

Of course, creating different rules regarding workers at small businesses may make it more difficult for these companies to attract and retain workers. However, states that want to pass this type of legislation may be able to support small businesses in other ways to limit the negative implications.

For example, some states like California have launched grant programs to compensate businesses for expenses related to offering paid family leave. There are many grant programs offered to small businesses in states around the U.S. But even many of the small business owners who have received grant funding say that this is only a temporary solution.

Protecting workers and ensuring fair wages and working conditions are important and honorable goals. But small businesses also provide tons of value to their communities. Balancing these two important elements isn’t always easy. But states and local governments that are able to support and incentivize small businesses without harming workers, perhaps through tax incentives, ongoing grant programs, or business-friendly policies, are likely to thrive.

Image: Envato

This article, "State Laws Harming Some Small Businesses" was first published on Small Business Trends