I hear many entrepreneurs question how big they really want to get because of one reason: employment regulation. Even though there has been progress in reducing regulation on small business through regulatory flexibility initiatives, there seems to be more efforts to push new laws to smaller and smaller businesses.
Now there is one more regulation that any business with 50 or more employees must follow. They must track diversity data on job applicants. From CNNMoney.com:
New federal guidelines meant to standardize how employers track data on the diversity of their job-applicant pool are taking effect starting today for jobs at federal contractors -- and similar rules will kick in later this year at U.S. companies with more than 50 employees....In the new system, federal regulators will be checking to see that companies are keeping diversity data on all applicants....
Such regulations are clearly hurting the entrepreneurial engine that is driving our economy in the 21st century.
(Thanks to News Alert and Ben Cunningham for passing along this information).
