Why Small Businesses Could Suffer under Changes to United States’ Employment Laws

A recent study from Duke University found that employment laws which protect employees from being fired affect small businesses to a much greater extent than large businesses. This is because these employee protection laws leave plenty of room for loopholes, loopholes which large companies can easily utilize to their advantage.

Employment expert and CEO of Employco USA Rob Wilson explains, “Under employee protection laws in places such as Europe, employees are kept safe from being fired under certain circumstances. This means small business owners are forced to keep them on and pay their wages. However, large companies can often sidestep this law by shunting employees off to new locations or rearranging their staff—a luxury a small firm cannot afford.”

Both Wilson and the study researchers conclude that implementing such employee protection laws in the United States could wreak havoc on small businesses.

Wilson says, “Companies large and small have already suffered under recent changes to employment laws. From Obamacare to the minimum wage to proposed changes to overtime, employers are facing new financial strain every day.”

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