Federal Labor Dispute Threshold to Increase Tenfold in 2026, Shifting Oversight Away from NLRB

If you’ve ever had a labor dispute at work—say, a conflict over wages, working conditions, or union organizing—you might know about the National Labor Relations Board (NLRB). They’re the federal agency that enforces the core laws governing most private-sector labor relations. But here’s the thing: they don’t automatically take every case. They use dollar thresholds to decide if a business is big enough to fall under their jurisdiction. The Small Businesses before Bureaucrats Act is set to dramatically change those thresholds, potentially pushing a huge chunk of labor relations out of federal hands.

The Tenfold Jurisdiction Jump

Starting in 2026, this bill mandates a massive, one-time increase in the dollar thresholds the NLRB uses to assert jurisdiction over labor disputes. Specifically, the existing threshold will be multiplied by ten (Sec. 2). For example, if the current threshold for a certain type of business is $50,000 in annual sales, the new threshold would jump to $500,000 overnight.

What does this mean in plain English? It means that a lot of businesses that currently fall under the NLRB’s oversight—and thus, under federal labor law protection—will suddenly be exempt. If your employer falls below this new, much higher threshold, the NLRB will be able to decline jurisdiction over your labor dispute. This shift is immediate and significant, affecting any decision the NLRB makes on or after January 1, 2026, or the date the bill becomes law.

Who’s Covered and Who’s Not

The primary effect of this change is to limit access to federal labor protections for employees in smaller businesses. For workers, the NLRB provides a standardized, dedicated federal system for resolving issues like unfair labor practices, illegal firings, and union election disputes. If the NLRB declines jurisdiction over your case because your employer falls below the new threshold, you lose access to that federal system.

For example, imagine you work at a regional service provider that currently brings in $150,000 annually. Under today’s rules, you might have the NLRB as a recourse if you feel your rights were violated. If the threshold jumps to $500,000, your employer is now outside the federal umbrella. Your recourse would then depend on whatever state or local laws might apply, which are often less comprehensive or less specialized than federal labor law.

Indexing the Threshold to Inflation

Beyond the initial tenfold jump, the bill introduces a mechanism for annual adjustments. Starting in 2027, the dollar threshold will be indexed to the Personal Consumption Expenditure Per Capita Index (PCE), published by the Bureau of Economic Analysis (BEA). This is basically a measure of consumer spending per person, often used as an indicator of inflation and economic growth.

Indexing the threshold makes sense; the NLRB’s current thresholds have often remained static for years, meaning that inflation gradually brought more and more businesses under federal oversight. By indexing it, the bill ensures the threshold keeps pace with economic reality. However, by starting that indexing after a massive tenfold increase, it locks in a much smaller scope of federal jurisdiction for the long term. The BEA, a Commerce Department agency, will now have a new annual task of calculating and publishing this index specifically for the NLRB’s use.