By Patrick Pizzella
Thursday, February 06, 2020
In the Clint Eastwood movie Magnum Force,
Eastwood’s character Inspector “Dirty” Harry Callahan said that a good man
always knows his limitations. As it turns out, a good man has a lot in common
with a good government. A good government has got to know its limitations when
it comes to federal regulation.
There’s nothing wrong with regulation, as long as the
right things get regulated. After all, some industries need standards that only
the federal government can enforce. But all too often, a regulation intended to
target one issue or activity will have an entirely different effect on another.
For instance, if a regulation that’s meant to increase wages instead results in
more unemployment, that’s a problem. At their worst, government regulators have
little effect on their targeted evils and instead place a cap on economic
growth and quality of life.
Under President Trump’s leadership, the Department of
Labor has taken a hard look at our regulatory approach. We’ve ramped up
enforcement of beneficial regulations and have set about targeting lawless
employers who cheat or endanger their workers. Meanwhile, we’re reducing and
reforming regulations that do little more than thwart job creation and
prosperity.
In fiscal year (FY) 2017, the Department published seven
deregulatory actions and zero significant regulatory actions, saving the
American economy $112 million. Having gotten warmed up, we published 12
deregulatory actions in FY 2018 — and, again, zero significant regulatory
actions, saving American businesses $3.28 billion. In FY 2019, our eleven
deregulatory actions more than doubled the previous year’s economic impact,
providing an additional $7.96 billion boost to an economy that’s enjoying the
lowest unemployment rate since 1969 and that has created 6.7 million new jobs
since President Trump took office.
For example, in 2019, we issued a rule that expands
access to retirement savings options for America’s small businesses and their
employees. With Association Retirement Plans (ARP), small businesses, including
self-employed workers, can band together by geography or industry to provide
employees with retirement savings plans like a single large employer, creating
greater economies of scale. Among our many other accomplishments, we lawfully
updated overtime regulations for the first time in over 15 years and enabled
more Americans to access portable health reimbursement arrangements.
In addition to our own deregulatory actions, the other
two branches of government have scored helpful assists in our goal of
unburdening the labor force. Both Congress and federal courts have issued
unfavorable reviews of regulations we inherited from the previous
administration. With the Congressional Review Act, Congress helped clean up the
regulatory landscape by repealing five Labor Department regulations that
covered such noncritical activities as the length of time businesses were
required to maintain paperwork after an employee becomes injured. In federal
court, four Obama-era labor regulations succumbed to legal challenges and were
summarily stricken from the books. Couldn’t have happened to a nicer bunch of
regulations.
In the off chance you’ve ever heard of the Persuader Rule
or the Blacklisting Rule, we doubt you miss them. Yet the road to deregulation
has no shortage of Chicken Littles who fear life in a land governed by fewer
rules. The Labor Department takes great care to avoid endangering workers and
their livelihoods. We target only regulations whose good intentions never materialized
or whose burden outweighs whatever supposed benefit the American workforce
derives. Sensible regulations that affect your health, safety, take-home pay,
or retirement security remain on the books.
Sometimes, a business that wants to follow federal
regulations may be unsure that all its practices are in compliance. In the
past, there’s been a justifiable apprehension about whether such a business
could go to the government and see if it’s in compliance without federal agents
coming down hard on anything they find. So businesses had to ask themselves a
question: Do I feel lucky?
The Trump administration, in contrast, has no interest in
playing gotcha or enforcing a regulation just because we can. That’s why the
Labor Department established the Office of Compliance Initiatives. We’re on a
mission to help employers who want to follow the law and operate in good faith,
and this new office is providing job creators the guidance they need to comply
with federal health, safety, and wage regulations without fear of regulatory
entrapment. We prefer to educate rather than litigate. But we won’t hesitate to
litigate when necessary — just ask any of the lawbreaking employers who had to
pony up an all-time record $322 million in back wages to their employees in FY
2019.
Under the Trump administration, deregulation works for
everyone. Workers are better off, and the economy is roaring. And that, as
Inspector Callahan might say, makes our day.
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