In my business career, I became accustomed to the US regulatory process. Congress would pass laws and the Department of Labor (DOL), IRS, EEOC, etc. would pass regulations to administer the laws. And, they used to be reported as such. The DOL released proposed regulations today, e.g.
Now, to promote conflict, these departments are rolled up into one category – the Obama Administration. This likely started before with George W. Bush, but to me it is done to represent that the President must be extending his powers. When, in fact, it is these departments doing what they have always done, nothing more or less.
The process works usually like this. A department will propose new or revised regulations to address a new law or an outdated one. There will be a formal comment period where feedback is sought. Then, the proposed regulations will be revised and another comment period may occur. Then, the regulations will be released.
To their credit, the departments do listen to feedback. And, sometimes if the pushback is so severe, they will be pulled and redone. Back in the early 1990s, there were some regulations passed that were so-God awful (called Section 89 to regulate non-discrimination in healthcare benefits), they were pulled.
While regulations come in all shapes and sizes, I want to take the chance to mention my favorite regulations issued by the IRS. I call them the Mea Culpa regulations, but they are better known as the Voluntary Compliance Program. In essence, if an employer discovers an error in compliance, it can remedy the problem and approach the IRS with its solution. They would pay a set small fine from a menu of choices and demonstrate how they fixed the problem. Often, it would be restoring lost benefits or financial restitution to affected employees. This happens more than you would think, but it is a great example when government gets it right.
So, the next time you hear reference to the Obama administration doing something. Let’s not jump to conclusions. It may just shoddy reporting on a mundane task. Continue reading