Outcome of Janus case is a critical one, and the small business community will be watching

The small business community has a big stake in the outcome of a U.S. Supreme Court case called Janus v. American Federation of State, County and Municipal Employees, Council 31. In the case, the high court will decide whether to overturn a 1977 decision called Abood v. Detroit Board of Education that authorized states to compel public employees to fund union activities, regardless of whether they support those activities.

Since the case dealing with the Detroit Board of Education was decided four decades ago, public employee unions have multiplied – aided in large part to state laws requiring compulsory financial contributions by public employees, irrespective of First Amendment objections. The echoes of these unions have shut out other voices, like that of small business. The Janus case could level the playing field for small businesses in states where organized labor wields inordinate influence.

Fueled by a guaranteed stream of revenue, unions have established massive political war chests, often used to influence elections and exert pressure on lawmakers. In states like California and Illinois, these unions have disproportionately strong influence. Engorged with unearned income from dissenting employees, they seek to advance the institutional interests that benefit government bureaucrats over private sector employees and entrepreneurs.

… increases the minimum wage by 2020, forcing small businesses to consider cutting minimum- wage jobs and raising prices on their goods and services. It requires all employers to provide paid sick and safe leave starting in 2018, a mandate that burdens small business owners with added costs, lost production, and new recordkeeping costs. All told, “Big Labor” dumped almost $2.4 million into the campaign.

The lasting effect of these unions’ advocacy is more government spending, higher taxes and continued regulations – costly polices that small businesses and their customers cannot afford.

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