Workplace Regulations Carry Hefty Price Tag

Sept. 14, 2001
Regulations governing America's workplaces cost an estimated $91\r\nbillion annually, according to a new study by the Mercatus Center at\r\nGeorge Mason University.

Regulations governing America''s workplaces cost an estimated $91 billion annually, according to a new study by the Mercatus Center at George Mason University.

Joseph Johnson, the Dorothy Donnelley Moller Research Fellow at the Mercatus Center who conducted the study.

"Johnson''s research sheds new light on the hidden tax that regulations impose on American citizens," said Susan Dudley, senior research fellow at the Mercatus Cent. "It is the most comprehensive report to date on the total annual cost of workplace regulations."

Johnson''s study examined rules issued by the Department of Labor that cover six key areas: labor standards, employee benefits, labor-management relations, safety and health, civil rights and employment law.

Within those six categories, the study estimates costs based on 25 major statutes and Executive Orders, such as the Family and Medical Leave Act, the Occupational Safety and Health Act and the Americans with Disabilities Act.

Cost estimates in the study include:

  • Labor standard regulations $1.2 billion
  • Employee benefit regulations $18.4 billion
  • Labor-management relations regulations $3.9 billion
  • Occupational Safety and Health regulations $48.6 billion
  • Civil rights regulations $6.5 billion
  • Employment decision laws $12.2 billion

Johnson pointed out that while many workplace regulations may benefit workers, it is important to track and understand the impact of the overall costs.

"As private sector managers have long recognized, that which goes unmeasured, goes unheeded," said Johnson. "Often, the desired benefits of regulation are better understood than the costs. In the same way that the federal government tracks on-budget expenditures, it is valuable to track the off-budget costs of regulation."

by Virginia Foran

About the Author

EHS Today Staff

EHS Today's editorial staff includes:

Dave Blanchard, Editor-in-Chief: During his career Dave has led the editorial management of many of Endeavor Business Media's best-known brands, including IndustryWeekEHS Today, Material Handling & LogisticsLogistics Today, Supply Chain Technology News, and Business Finance. In addition, he serves as senior content director of the annual Safety Leadership Conference. With over 30 years of B2B media experience, Dave literally wrote the book on supply chain management, Supply Chain Management Best Practices (John Wiley & Sons, 2021), which has been translated into several languages and is currently in its third edition. He is a frequent speaker and moderator at major trade shows and conferences, and has won numerous awards for writing and editing. He is a voting member of the jury of the Logistics Hall of Fame, and is a graduate of Northern Illinois University.

Adrienne Selko, Senior Editor: In addition to her roles with EHS Today and the Safety Leadership Conference, Adrienne is also a senior editor at IndustryWeek and has written about many topics, with her current focus on workforce development strategies. She is also a senior editor at Material Handling & Logistics. Previously she was in corporate communications at a medical manufacturing company as well as a large regional bank. She is the author of Do I Have to Wear Garlic Around My Neck?, which made the Cleveland Plain Dealer's best sellers list.

Nicole Stempak, Managing Editor:  Nicole Stempak is managing editor of EHS Today and conference content manager of the Safety Leadership Conference.

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