OBAMA ADMINISTRATION BOOSTS FUNDING FOR BIG LABOR

As the Obama administration aggressively backs regulatory agencies' enforcement efforts, it's cutting back on programs that educate businesses on how to comply with regulations.

The White House's proposed 2013 budget allocates more funding for federal and independent labor agency enforcement, including whistleblower programs and cracking down on unpaid overtime and worker misclassification.

The boost in funding is tied to an increase in initiatives to investigate and fine businesses for failure to comply with labor regulations. "They're going out of their way to aggresively investigate businesses, turning over stones to see if they're doing anything wrong,"said Elizabeth Milito, senior executive counsel of NFIB's Small Business Legal Center.

The budget outlines:

• $1.8 billion for worker protection agencies within the Department of Labor.
• $374 million for the Equal Employment Opportunity Commission, up from $360 million in 2012.
• $293 million for the National Labor Relations Board, up $15 million from the prior year.

To make matters worse, the Obama administration is also cutting back on programs that educate businesses on how to comply with new regulations - such as websites, webinars and hotlines, Milito said.

The complexity and expense of new regulations is adding to the climate of fear for small business owners. "Hiring and business expansion come to a halt when small business owners are unsure of the effect of new rules coming out of Washington," Milito said.