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Eliminating Fraud and Protecting Small Business Franchising
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As we close out the 2015-16 legislative session, I'd like to highlight a couple of the pieces of legislation that I will be pursuing over the next few months.
Senate Bill 401 brings the penalties for knowingly committing unemployment insurance (UI) fraud in line with the penalties for theft. During a recent review of the UI laws here in Wisconsin, we noted that the penalties for someone who intentionally defrauds the UI system are substantially lower than theft statutes. This bill seeks to remedy this situation by ensuring similar penalties for similar behavior. As with other changes to the UI system, increased criminal penalties for UI fraud will strengthen program integrity and ensure the system functions for its intended purpose.
Senate Bill 422 seeks to counter an effort by the National Labor Relations Board (NLRB) to upend the current, well-established, joint employer standard. The NLRB would like to bind small business franchisees with larger, national franchisors when it comes to things such as setting and policing work schedules, tracking employee performance, calculating the labor needs of franchisees, and more.
This broad, and what I feel to be incorrect, interpretation of the joint employer standard by the NLRB (an arm of the current national administration) would cause uncertainty and disruption for many small business owners, force some small businesses to close, and deter aspiring entrepreneurs from opening businesses and creating jobs. Therefore, SB 422 is necessary to protect the franchise business model in our state, which is responsible for over 177,000 Wisconsin jobs and $13.5 billion in economic output. This legislation is supported by Attorney General Schimel, and will likely help with leverage if the state fights this overreach in court. We remain committed to encouraging entrepreneurship, which produces economic growth and leads to the Wisconsin and American Dream.
Stay tuned for future e-updates, where I will discuss several of the other pieces of legislation that will also be my priorities through the end of session. As always, if you have any questions on these, or any other, pieces of legislation, please email me at Sen.Kapenga@legis.wi.gov or give me a call at (608) 266-9174.
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Town Hall Meeting Next Week
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Please join me for one of my town hall meetings in January, March, or April. During these meetings, I will be available to answer questions and hear from you about important issues at the state and local levels.
As always, if you are unable to attend these office hours, and you have any comments or questions, please email me at Sen.Kapenga@legis.wi.gov or give me a call at (608) 266-9174.
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New Year's Day in History
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1790 - President George Washington delivers the first State of the Union address in New York City.
1815 - U.S. forces led by General Andrew Jackson defeat the British in the Battle of New Orleans.
1918 - President Woodrow Wilson outlines his fourteen points for peace after World War I.
1935 - Rock 'n' roll king Elvis Presley is born in Tupelo, Mississippi.
1964 - President Lyndon B. Johnson declares war on poverty.
1987 - The Dow Jones Industrial Average closes above 2,000 for the first time.
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