feel like an all-consuming distraction that detracts from running the business. Yet falling behind carries real risk — from penalties and employee disputes to legal challenges that can be costly to resolve.
All this is taking place in an
environment where smaller employers are already watching staffi ng expenses closely. In May, 14% of small business owners named labor costs as their single most important problem, up from 9% the prior month and the highest reading for labor costs in the 52-year history of the National Federation of Independent Business (NFIB) Small Business Optimism Index. For comparison, taxes ranked as the top concern at 19%, followed by infl ation at 18%. The NFIB’s data revealed that rising
costs were a critical consideration in business decisions, especially when it comes to passing those costs along to customers. “More small business owners are struggling with signifi cant and unpredictable hikes in fuel prices, which are more challenging for small businesses to pass on to their customers compared to their larger corporate competitors,” NFIB Chief Economist Bill Dunkelberg said in the report’s release. For companies already struggling to keep costs in check, the latest labor proposals and regulations add another layer of concern. This article examines the key labor measures under consideration, their status, and how their implementation could impact distributors. Glenn Spencer, senior vice president of the Employment Policy Division at the U.S. Chamber of Commerce, provides additional perspective on the developments distributors should be watching and how
“Under current law, there are mandatory subjects of bargaining that you have to talk about. And then there’s non-mandatory subjects that I’m sure you want to put in the contract, depending on what it might be. This completely erases that line. Anything could wind up going into those contracts.”
— Glenn Spencer Senior Vice President Employment Policy Division U.S. Chamber of Commerce
they can prepare for regulatory changes ahead.
T e Faster Labor Contracts Act Among the labor issues drawing
attention is the potential impact of changes to the collective bargaining process. Unionization is always a hot- button issue for employers, employees, and unions alike. This year, the Faster Labor Contracts Act (FLCA) added a new wrinkle by proposing strict deadlines for companies and newly formed unions to negotiate their fi rst collective bargaining agreements.
The bipartisan bill would amend the National Labor Relations Act (NLRA) and require employers to begin bargaining within 10 days after a newly certifi ed union calls for negotiations. The two sides would then have 90 days to reach an agreement before either party could request mediation through the Federal Mediation and Conciliation Service. If mediation fails after another 30 days, either side could send the dispute to a three-person arbitration panel appointed by the federal government.
The key concern for employers is that this panel would be empowered to establish a two-year contract whose terms might not be economically feasible for the business. The bill would change a process that currently requires employers and unions to bargain in good faith but doesn’t require them to reach an agreement. Under the FLCA, arbitrators could ultimately decide wages, benefi ts, and other working conditions if the parties can’t reach an agreement themselves.
GLENN SPENCER
SENIOR VICE PRESIDENT EMPLOYMENT POLICY DIVISION
U.S. CHAMBER OF COMMERCE
Fall 2026 27
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