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NSBA supports flexibility for small-business owners when it comes to non-compete policies. On April 23, 2024, the Federal Trade Commission (FTC) issued its Final Non-Compete Agreement Rule (Final Rule), banning non-compete agreements between employers and their workers, specifically those that utilize non-compete agreements to protect their trade secrets, confidential business information, goodwill, and other important intangible assets. RELATED | NEWS | NSBA Comments on FTC Noncompete Rules The rule bars employers from entering or attempting to enter into a non-compete agreement with “workers” (employees and independent contractors). Employers are also prohibited from even representing that a worker is subject to such a clause. There are few exceptions under the new rule, including for senior executives, whose existing non-compete agreements can remain in force, however employers are barred from entering or attempting to enter into a non-compete agreement with a senior executive after the effective date. The rule has already been challenged in at least two lawsuits, one by the U.S. Chamber of Commerce, and a second filed by Ryan, LLC, a tax services firm. Both suits raise similar arguments, including that the FTC lacks authority to enact the rule, as well as its retroactive nature. RELATED | NSBA Files Suit in Federal Court on Behalf of Small Business Owners NSBA is continuing to monitor developments related to this rule and remains supportive of small-business owners being able to utilize policies most serving of their enterprise. Read the full rule here.

Watch this "nutty" webinar from NSBA, Ex-Im Bank, and BNutty any time! Discovering the world of exporting can be full of both challenges and opportunities. That’s why, this month, NSBA is partnering with the Export Import Bank (ExIm) and our “nuttiest” friends to tell the inspirational story of two soccer moms who founded BNutty, an Indiana-based peanut butter company. Join us to learn how these two navigated the global market and turned selling homemade peanut butter into an international success. Join this conversation with the National Small Business Association (NSBA) and BNutty's founders as they widely discuss the following: How their journey began with an annual fundraiser, which lead them to explore local farmers’ markets and evolved into a global company. Their bold move of loading their soccer bus with jars of peanut butter and venturing to compete with industry giants at the Fancy Food Expo in the heart of NYC. The essential resources they leveraged from EXIM and SBA to navigate the global landscape and work safely with international buyers. Practical advice for interacting with international buyers and captivating anecdotes from their business experiences in foreign countries. Watch the webinar here any time: From Fundraising Origins to Global Exports: The BNutty Story (on24.com)

NSBA is closely tracking overtime rule developments for impacts and effects on small business. In the last week of April 2024, the Department of Labor (DOL) released its final rule on Overtime Regulations which will have significant implications across various industries, particularly in terms of labor costs and workforce management. RELATED | NEWS | NSBA Signs Letter Opposing Rushed Overtime Regulation Changes Technically, this new standard affects eligibility criteria for overtime pay under the Fair Labor Standards Act (FLSA), outlining new criteria for determining which employees are exempt from receiving overtime pay. Those typically exempt from overtime rules include executive, administrative, professional, and other roles often referred to as "white-collar" positions; however, by the DOL’s new rule, the salary threshold determining overtime eligibility or exclusion will change: On July 1, 2024, this salary threshold will be raised to $43,888 and increase to $58,656 on Jan. 1, 2025.  Starting July 1, 2027, salary thresholds will update every three years, based on wage data and economic adjustments. NSBA stands with small-business owners and understands different regulations affect various enterprises in different ways. Federal legal challenges will likely be filed by the business community, including challenges to the new rule related to the triannual automatic adjustments. RELATED | NEWS | NSBA Signs Letter on Overtime Pay Flexibility Act Follow NSBA as we continue monitoring developments related to the new overtime rule.

The CTA is not the way to stem money laundering. FOR IMMEDIATE RELEASE Tuesday, April 30, 2024 Contact: Molly Day 202-552-2904 mday@nsba.biz Washington, D.C. – On April 30, 2024, National Small Business Association member Timothy Opsitnick, owner of Opsitnick, LLC and On Call Cyber, LTD in Ohio and Executive Vice President and General Counsel of TCDI in North Carolina, testified before the House Small Business Committee on the major burden posed by the Corporate Transparency Act (CTA). NSBA has been leading the charge against the CTA since its inception, and recently won a judgement from the U.S. District Court of the Northern District of Alabama that cited the CTA as unconstitutional. In his testimony, Opsitnick illustrated the burden CTA poses, “A first-time entrepreneur looking to open a coffee shop, for example, must push through these 102 pages of explanatory language to understand their reporting burden under this statute. Given permitting, licensure, construction and other delays, it’s entirely possible that our theoretical aspiring barista would have to read, understand, and act on over 100 pages of guidance before they serve a single cup to a customer; all under the threat of criminal sanctions.” Throughout the hearing, Members of Congress heard from NSBA’s Opsitnick the various problems with the CTA—not the least of which is that throughout his very active interactions in various small-business organizations, most small-businesses have no idea about the CTA. Opsitnick went on to highlight the massive data privacy concerns that exist with the CTA and elaborated on the chilling effect this rule will have on investment, mentorship and business growth. “According to an NSBA survey, the average cost to remedy a small-business data breach is $15,297,” stated Opsitnick. “However part of my professional practice includes cybersecurity and data privacy matters and I’ve seen small middle-market companies face costs over $100,000 in data breach scenarios, whether due to ransomware, attorneys’ fees, security professionals, or simply reputational damage.” NSBA will continue to seek legal recourse to overturn the CTA for all small businesses in the U.S. and is calling on lawmakers to pass legislation repealing the CTA. Please click here to watch the hearing and here to read the full testimony. Celebrating more than 85 years in operation, NSBA is a staunchly nonpartisan organization advocating on behalf of America’s entrepreneurs. NSBA's 65,000 members represent every state and every industry in the U.S. Please visit www.nsba.biz or follow us at @NSBAAdvocate. ###

This week, legislation was introduced in the House calling to repeal the Corporate Transparency Act. This week, in addition to NSBA’s testimony before the House Small Business Committee, legislation was introduced in the House to repeal the Corporate Transparency Act (CTA). RELATED | NSBA STANDS WITH SMALL BUSINESS AGAINST THE CTA Congressman Warren Davidson (R-Ohio) has introduced legislation, the “Repealing Big Brother Overreach Act” which would repeal the CTA. Companion legislation is expected to be dropped in the Senate next week by Sen. Tommy Tuberville (R-Ala.). This bill would end the CTA’s unnecessary reporting regime, as well as better equip Congress to craft a better approach to balance national security needs with interests and rights of law-abiding small-business owners. NSBA joined a broad coalition of trade associations in thanking Rep. Davidson and Sen. Tuberville for their efforts to repeal the CTA in a simple, straightforward fashion. In addition to this legislative option to repeal the CTA, NSBA is still pursuing its case against the U.S. Department of Treasury.  Last month, a federal court ruled the CTA unconstitutional. Despite this victory for the NSBA and the small-business community, Treasury officials have made it clear the CTA is still in effect for small-business owners who were not members of NSBA at the time of the decision, and they intend to overturn this ruling. RELATED | NSBA VICTORY IN FEDERAL COURT OVER THE CTA Follow NSBA as we continue our fight against the CTA legally and legislatively, and read the full letter to Congress here.

Watch NSBA's webinar on the New Independent Contractor Rule any time. Missed us on April 25 at 1:00 p.m. EDT? Watch NSBA's recording to hear from leading labor attorney Robert Shea on what you need to know when it comes to the new Independent Contractor rule and how to avoid major regulatory penalties. RELATED | NEWS | DOL Releases New Overtime Rule

Register for the Fireside Chat on disability and inclusion in the small-business workplace today! Join NSBA as we work with ePolicy Works for Fireside Chat on May 2, 2024, at 2 p.m. EDT. During the Fireside Chat, participants will share ways the U.S. Department of Labor can help support and advance disability inclusion in small business. Use #EPWChat to join!

Join NSBA Partner, GoTo, for a webinar on "How AI Eases IT Overwhelm." “Doing more with less” is the default way of working when you have a small IT department. Tack on today’s retention and resourcing challenges and IT has its hands full. That’s why leaders are turning to artificial intelligence to support the next evolution of the modern helpdesk. After surveying an international cohort of IT decision-makers, GoTo and OnePoll found that 92% of respondents consider AI beneficial for work, with 94% willing to delegate tasks to AI and 93% willing to upskill to leverage the new technology. Join GoTo thought leaders on Thursday, April 25 for this interactive session as we discuss: First-party research on AI trends for SMB IT teams Important implications for agents using AI How (and where) to begin using AI-assisted solutions

#WP2023 was a big success for small business! Wrapping after two days of important networking and meetings with key policymakers, NSBA’ s Washington Presentation (WP) was more impactful than ever, with nearly 200 small-business owners attending as our advocacy delegates. Headquartered at the Hyatt Regency DCA, WP 2023 kicked things off with NSBA’s quarterly Board meeting, where the Trustees discussed our long-term goals and strategy for supporting small business. NSBA Board Chair Bob Trieber and Washington Presentation Chair Tameka Montgomery then began welcoming the WP 2023 delegates, kicking our programming off with a networking lunch and our Advocate of the Year Awards Ceremony. This year’s award recipients include award finalists: Hope Blankenship of To the Rescue Bookkeeping, LLC in Diberville, Miss.; Sheletta Brundidge of ShelettaMakesMeLaugh, LLC in Cottage Grove, Minn.; Chyanne Hart of CAAM Logistics in Strasburg, Penn.; and Martha Hernandez of ESO Ventures in Oakland, Calif. NSBA also recognized Nora Oliver of 10X Nora Oliver, LLC in Woburn, Mass., with the Rising Star Award—an award for individuals just starting out as advocates for small business. The overall award winner was named for the first time publicly, Olalah Njenga of YellowWood Group, LLC in Raleigh, N.C., who shared some inspiring remarks with the delegation. “There is no job for you,” was the last thing Olalah was told before she began her small business. Instead of shrinking, Olalah chose to rise, and her incredible efforts for small business have continued to soar ever since. Congrats to the entire Awards Class of 2023! Joining the delegation were a handful of NSBA’s amazing partners: Amex Global Business Travel, Angel Oak Mortgage, Export-Import Bank of the U.S., and Judy Cyber Services. Following lunch, the WP Delegates then made their way to downtown Washington, D.C., for a briefing from key administration officials, including: Kylie Patterson – Senior Advisor for Opportunity and Inclusion at the National Institute of Standards and Technology CHIPS Program Office at the Dept. of Commerce; Jeff Stout – Director of SSBCI-Treasury; and Uma Hiremagalur – Deputy Program Director, Capital Readiness Program, Minority Business Development Agency at the Dept. of Commerce. While our group was too large to be accommodated by the White House, the Commerce building is one of the oldest in the Capital, and the auditorium’s opulence of a different era did not disappoint. Delegates then received a briefing from NSBA’s friends at the Prism Group, including an update on our Priority Issues. Rounding out the day, our Delegates then met for a rooftop evening reception followed by an exclusive screening of Amazon Studio’s new movie The Burial, starring Tommy Lee Jones and Jamie Foxx. Sharing the story of a family funeral home small business working against the pressures of a behemoth company, we were thrilled for the opportunity to watch this powerful movie in the comfort of Crystal City’s Alamo Drafthouse Cinema. Thursday began bright and early, with Delegates boarding the buses to head to Capitol Hill. The sun may not have been all the way up, but our attendee’s energy sure was! We were ecstatic to welcome some incredible Members of Congress to speak to our delegation over breakfast, including conversations and connections on what Congress is doing for small business policy in the nation’s capital and around the country. Members of Congress addressing the Delegates included: Rep. Morgan McGarvey (D-KY-03), Rep. Mark Alford (R-MO-04), Rep. Pete Stauber (R-MN-08), Rep. Judy Chu (D-CA-28), Rep. Eli Crane (R-AZ-02), Rep. Shri Thanedar (D-MI-13), and Rep. Hillary Scholten (D-MI-03). We were thrilled to see these Members of the Small Business Committee sharing their bipartisan views with such civility, as different perspectives will ultimately lay the foundation for stronger, more common-sensical small-business policy. Throughout the breakfast, NSBA leadership provided tips and insight on how to be the best lobbyist and advocate for small business during the Delegates’ congressional meetings. If you missed our virtual advocacy training on Wednesday, Sept. 6, you can view it in full here. Don’t forget to check back for other NSBA resources, including how best to build and grow your relationship with your Members of Congress! The Delegates were off from there to make the mark for small business across the Capitol complex, leaving behind materials and insights on what it’s like to run a small business under current laws, policies and regulations. Click here to download your copy of the handout materials, including focused information on four key NSBA issues prioritized in conversation by the WP Delegates: • Extend Expiring Tax Cuts • Enact the Credit Card Competition Act • Repeal the Corporate Transparency Act • Nominate and Confirm a Chief Counsel for Advocacy Thank you to our attendees, our partners, and all of our supporters in Congress for another successful Washington Presentation! Delegates, please don’t forget to follow up with your Members, and we’ll see you next year!

Missed WP2023? There's more in store for Washington Presentation 2024! Register today! NSBA’s annual fly-in known as the Washington Presentation was back in full force this year after a 2-year hiatus. More than 150 small-business owners made their way to Washington, D.C., to meet with lawmakers on the trials and tribulations of small business ownership. NSBA Member Andrew Weins, of Wisconsin, takes a second between Hill meetings with staff from the offices of Senator Ron Johnson and Representative Glenn Grothman to snap a quick small-business selfie. Thank you to GreenUp Solutions for sparing Andrew for the trip and thank you to all of the Members of Congress and their stellar staff for meeting with the NSBA delegation to discuss the importance of strong support for small business on both sides the aisle on Capitol Hill. While Sen. Ben Cardin’s (D-Md.) office was unable to host an in-person meeting, they met with the NSBA delegation from Maryland to talk about the important things their office is doing to support small business. From left to right,, top to bottom: Sandra Cheney, of Sandra Cheney Enterprises; Marcus Johnson, of Johnson Innovation Group; Katherine Scott, of Best Writers and Editors; Veronica Black, of E-50 Solutions; Genshe Chen, of Intelligent Fusion Technology (dialed in, not pictured); Michael Batisto of 1020 Builders; Bryan Pelley, of Protagonist; Donald Butler, of Butler Squared If you weren’t able to join NSBA in D.C. this time, there’s never a bad time to reach out to your Member of Congress to start building a relationship. NSBA works best because of the hard work and commitment of our members – let us help: Check out the NSBA Action Alerts (pre-drafted letters you can send to your Representatives and Senators in less than two minutes), our highly-cited surveys and reports, our one-page issue briefs and much more! NSBA Member Jeff Anderson, President of ATEK Distribution based in Minneapolis, commemorates his meeting in Rep. Tiffany’s office. Be sure to follow up with everyone, share your posts, repost a friend’s, and keep the conversation going to highlight the importance of America’s small businesses. From L-R: NSBA Members Michael Koslow, of Aenigma Investigation Agency; Monica Robles of Asociacion de Emprendedor@s; Isabel Chen, of Trystine Technical Innovations; Justin Schardin, Senator Feinstein’s Legislative Assistant; Marilyn Wilson Lund, of WAV Group; Elizabeth Stirling, of Volt MediaFix; Ana Bradfield, of Bradfield Consulting; Houman Ghajari, of MaXentric Technologies See y’all in February for our Small Business Congress!

H.R. 7963 will require the Treasury to improve small-business communications on reporting. Following NSBA’s small-business victory over the Corporate Transparency Act (CTA) in federal court earlier this year, similar lawsuits were introduced against the CTA across the nation. RELATED | NSBA Fighting for Small Business Against the Cumbersome Corporate Transparency Act In addition to these corresponding lawsuits, NSBA is pleased to report progress on legislative options to address the CTA, including action in the House to reduce cumbersome regulatory burdens for small-business owners. The Small Business Red Tape Relief Act (H.R.7963) was introduced by Representatives Zach Nunn (R-03, Iowa) and Henry Cuellar (D-28, Texas) to hold the U.S. Treasury accountable for educating Main Street businesses on reporting responsibilities. According to NSBA’s survey on the CTA, small-business owners’ top concerns over the CTA are related to a lack of clarity on filing requirements and beneficial owner information (BOI) definitions. H.R. 7963 would hold the Treasury’s Financial Crimes Enforcement Network (FinCEN) accountable to ensure small businesses are not responsible for requirements they have not been appropriately informed of. RELATED | NSBA Small-Business Survey on the CTA NSBA President and CEO Todd McCracken shared the following on the legislation: “America’s more than 33 million small businesses are the backbone of our economy from the smallest towns to the biggest cities, employing roughly half of all private sector workers.  An estimated 5.5 million new entities are formed every year, meaning that this year alone, millions of BOI reports will have to be filed. The last thing an emerging entrepreneur needs is a bureaucratic headache. If the government threatens punitive enforcement action and insists on collecting personal data on millions of Americans, we should demand transparency. We are heartened to see Congress is taking this issue seriously, and we urge legislators to support Representative Nunn’s Small Business Red Tape Relief Act of 2024.” Follow NSBA as we continue tracking efforts to stem cumbersome reporting requirements for small-business owners, including litigation and legislation related to the CTA.

From the SBTC.org website. On April 16, 2024, SBTC Executive Director Jere Glover was invited to testify before the House Small Business Subcommittee on Economic Growth, Tax and Capital Access in a hearing titled “Exploring SBA Programs: Reviewing the SBIC and SBIR Programs’ Impact on Small Businesses." In his testimony, Jere highlighted the remarkable successes of the SBIR/STTR programs, both in the key innovations they have produced as well as the incredible economic returns on the taxpayer dollar generated.  He stressed the need for reauthorization, and urged Congress to make the programs permanent, to avoid the chaos and uncertainty of another contentious reauthorization fight. Jere also recommended streamlining and simplifying the solicitation process to lower barriers of entry to new firms, as well as increasing the size of the program, and engaging with the large primes to improve Phase III transitions. With the SBIR/STTR programs set to expire in September 2025, SBTC’s hope that this hearing can get the ball rolling on drafting reauthorization language that, if not passed this year, will at least serve as a starting point early next.  SBTC has already had several discussions with staffers on the hill about what that legislation might look like, and what legislative vehicles could be used to pass it. Follow the links below to read Jere’s written testimony, and watch a replay of the livestream of the Hearing on the House Small Business Committee’s YouTube channel: Jere Glover April 16 Written Testimony to House Small Business Committee House Small Business Hearing on SBIC and SBIR Livestream