WASHINGTON (Oct. 2, 2017) – Today, Carlos Castro, president of Woodbridge, Va.-based Todos Supermarket, joined Small Business Administration (SBA) Administrator Linda McMahon for a “Cut the Red Tape: Liberating America From Bureaucracy” listening session to discuss regulatory reform at the Department of Labor (DOL). Carlos spoke on behalf the National Grocers Association (NGA), the trade association representing the independent supermarket industry, and discussed how the increasing number of onerous regulations prevent small businesses from growing.

During the discussion, Castro urged the Administration to revisit the Overtime Rule and propose a more reasonable salary threshold. Castro also outlined how health care costs have become one of Todos Supermarket’s largest expenses and nearly forced the business to close. The average independent grocer spends between $40,000-$50,000 annually on regulatory compliance, according to an NGA member survey, while operating on a one to two percent profit margin.

“There’s no question that it’s time to update our nation’s overtime law, but the proposed rule simply would have gone too far, too fast,” said Castro. “Over the last 30 years, we’ve worked hard to train young workers and retain employees for the long run. The Obama administration’s Overtime Rule would have been harmful to the culture we created by raising costs and reducing workplace flexibility.”

“Todos Supermarket was one of the few grocers in our area that provided healthcare coverage before it was mandated—it used to be one of the biggest points of pride for our company,” said Castro. “Now healthcare is one of our biggest expenses and nearly forced our business to close down until we significantly diversified our offerings.”

“The story of Todos Supermarket is the perfect example of how an ever-growing number of burdensome regulations too often prevents supermarkets across the country from growing their stores, hiring more staff, and expanding offerings,” said Peter J. Larkin, president and CEO at NGA. “It’s crucial that our nation’s laws help—not hamper—growth for the small businesses that are the backbone of America.”


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Additional Media Resources:

  • To view photos of today’s listening session, click HERE.
  • To view the DOL’s release on the event, click HERE.