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November 4, 2008    DOL Home > Newsroom > Speeches & Remarks   

Speeches by Secretary Elaine L. Chao

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Remarks Prepared for Delivery by
U.S. Secretary of Labor Elaine L. Chao
2004 NFIB National Small Business Summit
Washington, D.C.
Thursday, June 17, 2004

Thank you.

First, let me take a moment to recognize Speaker of the House, Dennis Hastert, who will speak in a few minutes. He, too, is a strong supporter of the issues that concern you as small business owners.

I am delighted to be here—I know that you are all waiting for the President to speak, who is a great friend and supporter of small businesses.

America needs the entrepreneurial energy, creativity and dreams of entrepreneurs. You create hope, opportunity and jobs for many people. President George W. Bush and this Administration recognize that.

So, today, I'd like to talk about what this Administration and the Department of Labor are doing to create a climate in which entrepreneurial success and job creation can flourish.

Let me start with the economy, which has come a long way. As you may recall, the stock market peaked in March 2000. In August 2000, manufacturing entered the doldrums. By the time President Bush took office, the nation was starting to show signs of a recession, though it was not widely reported at the time.

The economy was responding to the President's first round of tax cuts when the attacks of September 11th, 2001, occurred. 1.5 million jobs were lost in the first 3 months after the attacks. The President's tax cuts and jobs—and—growth package jump—started the economy. These initiatives are widely credited with making the recession one of the shortest and shallowest in recent history.

First quarter GDP growth for 2004 grew at 3.9 percent. Real after—tax incomes are up 10 percent since the fourth quarter of 2000, substantially above the levels of the last recession. Inflation and interest rates are near 40—year lows, pushing homeownership to all—time highs. Productivity growth rates have soared.

The forward momentum of the American economy is also reflected in the strengthening labor market. Our economy has experienced 9 straight months of job growth, with 1.4 million new jobs created since last August. Nationally, the unemployment rate remains at 5.6 percent, which is lower than the national average in the 1970s, 1980s and 1990s.

The Department is doing its part to create an economic climate in which job creation can flourish and working families can move forward.

Through regulatory reform, the Department is ensuring that its regulations are relevant to the 21st century workforce and that unnecessary obstacles to job creation are removed. Under this Administration, the Department has reduced its regulatory agenda from 130 items to 80. Many of these had been on the Department's agenda for years and even decades. By paring down burdensome items and concentrating on regulations that can really improve safety at the workplace, the Department has been able to focus on significant regulatory reforms.

The last time I spoke to you in 2002, I shared with you the new culture of responsibility that we were building at the Labor Department through compliance assistance. The reasoning behind this initiative is simple: if the government requires businesses to obey the rules, then the government has a responsibility to make its rules clear and understandable. And the Department of Labor has been working very hard to reach out and educate small business owners on the laws and regulations that apply to them.

In fact, the Department has created an important resource for small businesses—the FirstStep Employment Law Advisor . This Web—based tool will help entrepreneurs like you determine which of 23 major laws apply to your business. You can access this Employment Law Advisor by visiting the Department of Labor's Web site at: www.dol.gov/elaws. By clicking on this tool and answering a few questions, you can learn which of these laws apply to you and how to comply with them.

There is also an Employment Law Guide on the Web site that describes each of these major laws in plain language. It is designed to help employers develop wage, benefit, safety- and-health and nondiscrimination policies for their businesses. If you need further help, or would like a free copy of the Employment Law Guide, please call the Department's toll-free number. It is: 1-866-4-USA-DOL [or 1-866-487-2365] . These tools are part of our commitment to help you understand these sometimes very complex laws. As we work to streamline government regulations and reduce the burden of lawsuits that hamper your ability to grow, you can spend your time and energy building your businesses.

And that is a major reason why the Department has issued new rules that update and clarify white—collar overtime regulations that were first created in 1938.

This issue is important to you. If your business has two or more employees and revenues of over $500,000—or if your activities involve interstate commerce—you are impacted by these regulations.

The old overtime regulations were so outdated that they created a legal nightmare. In fact, overtime complaints now generate more federal class action lawsuits in the workplace than discrimination complaints.

Under the new rule, 6.7 million workers will gain stronger overtime protection, and:

  • All blue collar workers are entitled to overtime;
  • All salaried workers who earn below $23,660 are entitled to overtime—currently, only salaried workers who earn less than $8,060 per year are guaranteed overtime protection;
  • If you are a salaried worker who earns more than $23, 660, your employer must pay you overtime unless you perform executive, administrative or professional job duties.
  • The final regulations update and clarify the definitions of executive, administrative or professional job duties, which have not been changed since 1949, when Elvis was a teenager.
  • The final regulations also protect the overtime pay for police officers, fire fighters, paramedics, licensed practical nurses, cooks, technicians and veterans.

Employers will gain, too. Greater clarity will hopefully mean fewer overtime disputes. Employers will be able to spend their time and resources growing their businesses and creating new jobs instead of hiring lawyers.

Another critical issues facing the workplace today is the cost of health insurance. This Administration understands that the rising cost of health-care insurance has hit many employers and working families hard. Nowhere is this more apparent than for America's small businesses. That's why this Administration has made Association Health Plans (AHPs) a top priority.

As you know, AHPs would allow your small-businesses to band together nationally, pool your resources and purchase health insurance at more affordable rates. Studies show that AHPs could save subscribers as much as 25 percent on health insurance costs and help as many as 8 million uninsured Americans obtain coverage.

Due to the work of Speaker Hastert and many others, the House of Representatives has passed legislation that would pave the way for AHPs. The President is also a strong proponent of AHPs and is working very hard to make this affordable care a reality for you and your employees.

In another effort to help you, President George W. Bush has taken the lead in leveling the playing field for small businesses in government contracting. One of the President's first reforms was an Executive Order mandating competition in government services and contracts and unbundling of large federal contracts whenever possible.

At the Department of Labor, we're ahead of the curve—we do not bundle procurements. In fact, last December we established a new procedure in advance of the federal regulations on bundling to prevent it from happening in the first place. In fiscal year 2003, the Department awarded more than $438 million in federal contracts to small business owners. We take the President's initiative very seriously. And we are committed to ensuring that your businesses have a level playing field to compete for these lucrative opportunities.

And finally, let me tell you about the Department of Labor's special initiative to reach out to small business owners on health and safety issues.

This organization—the NFIB—signed an Alliance agreement with the Occupational Safety and Health Administration on Monday, June 14. Through the Alliance Program, OSHA will work with organizations committed to safety and health to reach out to, educate and lead the nation's employers and their employees in further reducing injuries and illnesses in the workplace.

And as you know, when injuries and illnesses are reduced, your workers are at work and your businesses can grow and flourish.

President Bush, this Administration and the Department of Labor are committed to helping you build brighter futures for yourselves and your workers.

You are part of the powerful engine of growth of that is creating hope and opportunity for millions of Americans. So thank you for everything you are doing to build brighter futures for America's families.

God bless you and God bless America!

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