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Could Your Court Case Be Next? The NASE played a central role in pushing the Small Business Regulatory Enforcement Fairness Act (SBREFA) through Congress in 1996. Now that law is beginning to show its teeth as small businesses fight back against burdensome regulations and unfair enforcement actions imposed by federal government agencies. Federal agencies have long had the authority to sue small businesses. Under SBREFA, small businesses can sue federal agencies if the agencies impose oppressive requirements on the businesses without consideration of any less costly and less meddlesome alternatives. It’s a classic example of the old adage “turnabout is fair play.” And it’s working in favor of small business. Since SBREFA passed, about 10 small businesses and groups of small businesses have exercised their right to sue. Those lawsuits are going surprisingly well for the small businesses. Take a look at a few of the outcomes. Northwest Mining Association vs. Bruce Babbitt,
Secretary, Department of the Interior Southern Offshore Fishing Association vs. William
Daley, Secretary, Department of Commerce American Trucking Association, et. al. vs. Carol
Browner, Administrator, Environmental Protection Agency Obviously, taking a federal agency to court is a bold step for any small business. It’s even more daunting for a self-employed person. And when it comes to dealing with petty annoyances by federal agencies, lawsuits are overkill. But if your business is truly threatened by an agency’s action, SBREFA could prove to be a legal and legitimate lifesaver. If you find yourself going toe-to-toe with a federal agency, don’t duke it out alone in court. Contact the Office of Advocacy at the Small Business Administration for a list of attorneys who are experienced in using SBREFA on behalf of small businesses. The successful lawsuits are important because they send a message to federal agencies on behalf of all small businesses: “You can expect to lose in court if you step on the rights of small businesses under this law.” In time, that message will deter federal agencies from enacting regulations without due consideration paid to small businesses. In time, agencies will give real pause when small businesses and self-employed individuals say: “ I think I’ve got grounds for a pretty good SBREFA lawsuit. Shall we try to work this out or do you want to go to court?” In time, agencies will begin saying to themselves: “We’d better think carefully about this regulation. We could have a SBREFA problem here.” That time is not far off. Stay tuned. Return to the table of contents |
Allies In Your Fight Against The Feds The Small Business Regulatory Enforcement Fairness Act (SBREFA) offers small-business owners another weapon in the fight against unfair federal regulations and enforcement policies. Although the right to sue a federal agency certainly strengthens the position of small businesses, initiating a lawsuit should be a last resort. If you think a federal regulation is imposing an undue burden on your business, these two agencies can act as your allies and may help resolve the matter before court action becomes necessary. You can link to them through the " TARGET="_new">NASE Advocacy page. SBA Office Of Advocacy |
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