SMBs Hurt by Discrimination Ruling

Small business owners will have to think twice before they take any action against an employee who complains of workplace discrimination.

The National Federation of Independent Business says the U.S. Supreme Court’s decision last week in a discrimination case muddies the water on exactly what constitutes an actionable offense under Title VII of the Civil Rights Act.

In the case Burlington Northern & Santa Fe Railway Co. v. Sheila White, the court held that if employees complain of discrimination, employers must be careful in their response. Employers could be guilty of retaliation even if they don’t change employees’ pay, job title, or job duties. The court said each action must be judged independently based on whether it could be construed as "materially adverse to a reasonable person."

"This ambiguity in the law is extremely burdensome to small employers, as the cost associated with litigation can potentially threaten the existence of a small firm," said Karen Harned, who heads the group’s legal foundation.

Small Businesses Fight Eminent Domain

The U.S. Supreme Court’s ruling on eminent domain a year ago made small businesses fighting mad, but so far their response has been tepid.

A new report by the Small Business & Entrepreneurship Council notes that some progress has been made in 23 states. The House also quickly passed a key bill to upend the court’s decision, but the measure is now stalled in the Senate with no hearing scheduled for the foreseeable future.

In a landmark case, Kelo v. City of New London, the high court greatly expanded the power of governments to seize private property. Previously limited to "public uses" — essentially such things as parks and highways — the law was changed to give local governments the power to condemn property for privately owned economic development projects.

Small businesses are particularly burdened because they often are located in older business districts, which are frequently targeted for high-end redevelopment.

HR Group Names ‘Top 50′ SMBs

When it comes to creating the ideal workplace, the nation’s best small businesses share a lot of things in common, according to a human resources trade organization.

The Society for Human Resource Management says the companies that made its latest Top 50 list of small businesses are all dedicated to communicating clearly with employees, encouraging staff to voice their opinions, and offering generous salaries and benefits.

"As a result, their employees are motivated and invested in the organization, making these companies some of the most successful small businesses in their industries with high profit and low turnover," the organization said.

Analytical Graphics in Exton, Pa., was named the best medium-size company to work for, after taking the top spot among small companies the previous two years. Badger Mining in Berlin, Wis., was the number one small company.